WELCOME TO THE BOOMTOWN

WELCOME TO THE

boomtown

The Outer Banks has seen its share of building booms, but none quite like the current explosion of construction and renovation.

BY CATHERINE KOZAK

DURING A TIME OF NATIONWIDE DISRUPTION when people have had to adjust to concepts of a “new normal,” the record number of people who suddenly saw the Outer Banks as a perfect shelter from the storm was still somewhat unexpected.

And as a result, those who build, renovate and sell those local “shelters” have never been busier.

“Once Covid came into play, and people figured they could work from home, it seemed like a lot of people wanted to move here, or retire earlier and move here,” says Vaughan Robinson, president of Outer Banks Home Builders Association.

Fortunately for the industry, homebuilding was deemed essential during Covid closures, so businesses didn’t miss a beat. Even 18 months since the pandemic shutdown, the record demand for all things real estate on the Outer Banks has barely slowed.

“It still seems pretty wide open,” Vaughan says. “Summertime is usually when you get a little slower, but that hasn’t really happened this year.”

According to MLS reports from the Outer Banks Association of Realtors, property sales in 2020 totaled $1.57 billion, a 44-percent increase over the previous year. Inventory of land and houses are also at record lows, while the first four months of 2021 showed that sales were still up 94 percent.

Vaughan, who owns Coastal Cottage Contracting in Kitty Hawk, has been in the homebuilding business for about 15 years, and he’s personally heard that nearly every local builder currently has enough work for at least a year. But he adds that there have also been some overall delays in getting certain supplies, the available labor is tight, and it can sometimes take longer to complete projects these days.

“There are just a lot of circumstances that seem to have converged and made it difficult,” Vaughan explains.

Shortages of one significant supply – wood – has recently hit homebuilders especially hard.

Lumber prices reached historic highs this past March and April, observes Jason Koller, the manager of Kellogg’s Supply Company in Manteo. Plywood and studs, for instance, more than tripled in cost at one point.

“It was really hard on contractors,” says Jason, who has been in the industry for 28 years.

Although prices have mostly stabilized now, some things continue to be hard to acquire – such as certain lengths of boards or bulkheads – while cabinets, windows, doors, components and plaster deliveries have all been affected by delays in manufacturing and shipping.

Lumber mills farther south have been especially impacted by labor shortages, Jason adds, as well as major cargo backups at some ports.

“We just don’t have the inventory we’re accustomed to having,” he says.

Despite spotty shortages, Vaughan feels as though local homebuilders have mostly managed to work with what they can get. One example of this is asphalt shingles, which have been difficult to get in a wide variety of colors, though manufacturers have still been able to offer the most sought-after hues.

Cedar and metal roofs have also experienced a price hike due to shortages, but Vaughan notes that working with those materials can largely be avoided unless a customer really has their heart set on one of them.

Other events such Texas’ deep freeze this past winter have affected the availability of things such as plastics and resin, supplies of which were initially disrupted entirely, and then backlogged.

“You just have to understand that when you’re going into it,” Vaughan says. “And then plan accordingly to try to get it worked out or get the order in early.”

With the housing inventory so limited, there’s also been a lot of interest in renovating existing houses. Out-of-area homeowners’ renewed interest in making the Outer Banks a primary residence has meant that many family summer cottages or rental properties have been repurposed with that in mind.

Some of those renovations are perhaps more surprising than others. With many reverse floor plans in local houses (which feature open living spaces on the top floors), there’s been a surge in elevator installations to accommodate more year-round occupants, while tear-downs of older, smaller houses that sit on valuable property has also risen.

Though Vaughan notes that a smaller existing property might be perfectly livable with some retrofitting done by a skilled contractor, he’s also aware that many have been prioritizing the ability to settle in quickly. “Once Covid came “Some people don’t into play, and want to wait,” Vaughan people figured concedes. “When everythey could work thing was shut down, they from home, it wanted to move and be seemed like a lot here right then.” of people wanted Although looming to move here, or impacts from climate retire earlier and move here.” change, especially sea level rise, is also often cited as a significant -Vaughan Robinson, President of the Outer Banks Home Builders Association future challenge for the homebuilding industry, Vaughan feels as though local contractors have things well in hand. Outer Banks builders are already required to meet coastal building codes that require houses to withstand winds of at least 130 miles per hour – and strict stormwater measures are mandated during the construction process as well.

Even if Governor Roy Cooper puts new regulations in place as part of a statewide climate initiative that’s expected to require more resilient building measures, Vaughan seems confident that the industry will adapt as necessary – although though the concept of “green” building, which is focused on sustainability and efficiency, hasn’t really taken off on the Outer Banks as it has in the western region of North Carolina.

For the most part, local customers continue to look for sleekly modern styles or classic designs that draw inspiration from older flat-tops or cedar-shake cottages, Vaughan notes, but that hasn’t necessarily resulted in much demand for green building practices, which can be costly.

“With some of the price increases, especially from Covid impacts, housing is already expensive,” he adds. “It’s just a matter of what people want and what they’re willing to pay for.”