Coastal Emerging Market Report 2023

EMERGING MARKET REPORT

Contents

Coastal Surrounding Markets

INTRODUCTION

• Leland

• Hampstead

• Oak Island

• Holden Beach

• Topsail/Surf City/ North Topsail

• Southport

• Emerald Isle/ Atlantic Beach

• Carolina & Kure Beach

• Sunset Beach

The Southeastern coastal region of North Carolina has been a hidden gem of vacationers for decades due to affordability, a small-town feel, and immaculate beaches. In recent years, Wilmington and Wrightsville Beach have seen a dramatic increase in population with both baby boomers and young families wanting to live near the beach full–time and second home buyers, putting upwards pressure on pricing and decreasing supply. This trend skyrocketed with COVID-19 and home buyers flocking to communities with access to the outdoor activities afforded by the beaches, water, and great climate. As the stock market recovered and turned bullish, home buyers had more access to more wealth and the ability to purchase second homes, leading to supply decreasing even more.

We compared the number of homes sold in 2019-2023 emerging market areas now attracting interest above $750,000, as these markets have developed increased popularity and appeal as high demand areas saw inventory decline during COVID.

Leland

Considered one of the fastest-growing cities in North Carolina, Leland is seeing a sudden surge of homeowners who want to live in Wilmington, but can no longer afford the increased cost of living or want more land, as well as water proximity. The development of several brand new communities make it an ideal place to retire or for first time home buyers. Because of the targeted demographics, the luxury market is small, but slowly developing. In 2019, there was only 1 house sold over $750K and a huge jump occurred in 2022 with 11 houses sold and 12 being sold in 2023 as it continues to grow.

Emerging Markets Sell-Through Over $750K

Hampstead

Hampstead is a fast-growing coastal community located in southeastern North Carolina just north of Wilmington. Bordered to the east by the Intracoastal Waterway, Hampstead residents are reasonably close to Figure 8 Island, Topsail Island, and Wilmington and Wrightsville Beach. Many are drawn to Hampstead by its proximity to the coast, home value, and the highly-rated Topsail school system. In 2019, there were only 4 houses sold over $750K, with a significant jump in 2021 to 12 and up to 17 in 2022.

Emerging Markets Sell-Through Over $750K

Oak Island

Separated from mainland North Carolina by the Intracoastal Waterway, Oak Island is tucked under the southern tip of North Carolina. Oak Island has an atmosphere far more casual than a typical beach island and has attracted a different type of buyer. People desire the laid back atmosphere the Oak Island offers over the beaches and this has shown dramatically over the last four years. In 2019, there were only 6 houses sold over $750K and in 2022, there were 46. The slight decrease to 37 in 2023 is to be expected as the artificial and natural adjustments cause the market to slow and return steadily to more normal conditions.

Emerging Markets Sell-Through Over $750K

Holden Beach

Holden Beach ranked in the ‘Top 10 Family Beaches in the US’ by National Geographic Traveler’s for its small town charm and family-oriented atmosphere. The barrier island was purchased in 1756 by Benjamin Holden and for generations, the Holden family lived on the island, where they farmed and fished together. It wasn’t until the 1920s that the Holden family began developing a resort community. Holden’s nostalgia has been maintained to this day by low density population and a strict limit on commercialism, making it popular for families and people seeking to really get away. In 2019 and 2020, there were only 7 and 4 houses sold, respectively, above $750K and by 2021, that number had increased to 22 houses and has continued to grow steadily over the last couple of years.

Emerging Markets Sell-Through Over $750K

Topsail Island

An hour north of Wilmington, Surf City is in the heart of Topsail Island, in between Topsail Beach and North Topsail Beach, which is another one of North Carolina’s barrier islands separated from the mainland by the Intracoastal Waterway. From an old pirate hideout in the 1700s, to a missile testing site, Topsail Island and Surf City have become emerging vacation spots for people to visit, not just for the beautiful beaches, but the different historic sites, such as the Missiles and More Museum. In 2019 and 2020, there were only 10 and 6 houses sold, respectively, above $750K and by 2021 and 2022, that had increased to 31 and 70 houses.

Emerging Markets Sell-Through Over $750K

Southport

Southport is a small, historic town at the Southeastern tip of mainland North Carolina and is bordered by the mouth of the Cape Fear River and the Intracoastal Waterway. Mainly used as a military town from the 1700s, Southport has only become a sanctuary from city life in the last century. In 2019, there was only 1 house sold above $750K and by 2021, that number had multiplied to 19 homes, even jumping up to 29 in 2023.

Emerging Markets Sell-Through Over $750K

Emerald Isle

Emerald Isle is a town on the northern barrier island Bogue Banks Island that has beaches on the Atlantic Ocean side and on the Bogue Inlet side. In 1954, Emerald Isle was purchased from a Mrs. Anita Fort Maulik of Philadelphia for $350,000, which was the largest recorded sale in NC at the time, and as a developer flew over the island to map out the plan for it, he said it looked like a “beautiful emerald resting in a sparkling sea” and declared “This place shall be known as Emerald Isle”. The late development of the town led to a slow increase in population, but over the last few years, has skyrocketed due to COVID relocations. In 2020, there were only 10 houses sold above $750K and by 2021, that number had increased to 48 houses.

Emerging Markets Sell-Through Over $750K

Carolina & Kure Beach

With its proximity to Wilmington, the ferry to Southport and Wrightsville Beach’s escalating property values, the Pleasure Island area of Carolina and Kure Beach have become a highly sought-after coastal destination. Long known for its relaxed vibe and small-town beach atmosphere, this area’s real estate market has seen major jumps in property values as well as unit sell-through. In 2020, there were only 6 houses sold above $750K and by 2022, that number had increased to 41 houses.

Emerging Markets Sell-Through Over $750K

Sunset Beach

The island of Sunset Beach features a white sandy beach with undisturbed sand dunes, a natural habitat and a nesting ground for coastal wildlife of all kinds. The southern-most of North Carolina’s Brunswick Islands, Sunset Beach is only three miles long but it is everything that a family beach should be. In 2019, there was only 1 house sold above $750K, but by 2023, that number had increased to 10 houses, showing its growth as a luxury market.

Emerging Markets Sell-Through Over $750K