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Real Estate - Residential

Workforce Housing Panel: Some Steps Taken, But Problem Getting Worse

By Emma Dill, posted Feb 4, 2025
A graphic from the New Hanover County/City of Wilmington Workforce Housing Advisory Committee (WHAC) shows current housing gaps and accomplishments. (Image courtesy of WHAC)
Residential projects in Wilmington and New Hanover County committed to the creation of at least 425 affordable housing units in the last year, according to data compiled by the New Hanover County/City of Wilmington Workforce Housing Advisory Committee (WHAC).

Despite those planned units and local funding of affordable housing initiatives, WHAC chair and local Realtor Tom Gale told the New Hanover County Board of Commissioners on Monday that continued cost increases have made the group’s efforts more challenging. 

Gale gave an annual update on the committee's efforts and made recommendations for the coming year. He is set to present the update to the Wilmington City Council at its regular meeting Tuesday.

The WHAC, formed in 2019, consists of six members appointed by county leaders, six appointed by city leaders and one member from the city/county Community Relations Advisory Committee. The group efforts are focused on making housing more affordable and increasing the availability of diverse housing types.

According to data from the Federal Housing Finance Agency, median home prices in the Wilmington area have increased more than 85% over the last seven years, and mortgage rates have climbed from 4.5% in 2018 to 7% today, Gale said.

“A $200,000 home in 2018, would have had a mortgage payment of just over $1,000 per month,” he said. “That same home today would be priced at $370,000 and have a mortgage payment of over $2,400 per month – a 140% monthly increase.”

Meanwhile, rental rates are also climbing, Gale said. Although increased rental construction is expected to result in a smaller increase this year, compared to last year, that could change in the future.

“Unfortunately, construction of new units coming online in the next few years is expected to slow significantly, which will tighten supply and increase rents substantially again,” Gale said Monday.

Data from the North Carolina Housing Coalition shows that 53% of renters and 23% of homeowners in the Wilmington area are housing cost-burdened and spend more than a third of their income on housing.

“In short, the problem we set out to tackle has only gotten more challenging,” Gale told the board of commissioners on Monday.

Gale said that in the last year, Wilmington's housing programs served 18,641 individuals, and 287 affordable units were committed through city zoning. In New Hanover County, 138 affordable units were committed, and 381 households were served by the county’s housing services and GAP rental assistance programs.

Gale outlined a series of recommendations from the committee across five areas, including funding, policies and legislation, diversity of housing supply, programs and education.

In the coming year, Gale said the committee recommends continuing ongoing efforts to develop a housing fund in conjunction with the New Hanover Community Endowment and leveraging local, federal and private funds to support land acquisition and other development costs. The committee also wants to see the continuation of New Hanover County’s Workforce Housing Services Program with an annual budget appropriation of no less than $5 million beginning in 2027.

From a policy standpoint, Gale said the committee supports requiring a source of income protection for rental projects that get funding support or rezoning approval from the city or county. The group also supports reducing parking restrictions or offering parking requirement reductions in exchange for a commitment to affordable units.

The committee would like to see local leaders decrease lot size requirements for duplexes, triplexes and quadruplexes to encourage infill development, especially in downtown areas, Gale said. Members also support the use of the land trust model and increased funding and land allocations to developers building multifamily or supportive housing for homeless individuals.

Gale said the committee supports expanding the city’s Homeownership Pool to include all of New Hanover County and establishing a full-time staff member to offer tenant and landlord education and to investigate Fair Housing complaints. Members also support ensuring all eligible homeowners are informed about the Tax Relief program.

Efforts are continuing to build a webpage dedicated to local affordable housing services and issues and to launch an educational campaign to inform residents about services. In 2025, the committee aims to hold a one-day affordable housing summit with local stakeholders, including city and county officials, builders, developers, Cape Fear Housing Coalition and the New Hanover Community Endowment.

The area's housing prices have pushed some out of the region. The county’s median income has increased 50% in the past five years, Gale said, a trend that’s due in part to the displacement of lower- and middle-income households. Today,  about 53% of New Hanover County’s workforce lives in the county with 52,000 daily commuters, he added.

“While it’s great that we’re attracting high-paying  jobs, it’s tremendously important that the public understand why it’s in their best interest that nurses, police officers, teachers, retail workers, waitstaff and others have a place to call home here, too,” Gale said, “because once they’ve relocated out of our community, trying to create solutions to bring them back becomes significantly harder.”
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