Wilmington’s housing market became marginally more expensive in the fourth quarter of 2024, reflecting a broader trend of rising costs nationwide. According to the latest data from Attom Data Solutions, the Housing Affordability Index in Wilmington’s metro area fell slightly to 69, down from 71 in the third quarter but up from 66 in the same period last year.
- The shift comes as both wages and home prices in Wilmington continued to climb.
More Money: The average annual wage for Wilmington residents rose to $60,047, but the median home price increased to $425,000. Rising home prices, coupled with elevated mortgage rates, pushed the percentage of annualized wages needed to buy a median-priced home to 45.4% in Q4—up from 44.2% in Q3 but a slight improvement from 46.5% in the fourth quarter of 2023.
Could Be Worse: Despite the uptick in costs, the situation isn’t as dire as it has been in recent years. Affordability in Wilmington reached its lowest point in Q4 2022, when the index dropped to 61. The percentage of annual wages needed for home ownership also hit a high in the second quarter of 2024 at 46.8%.
What They’re Saying: Wilmington’s affordability struggles are part of a national pattern. Attom Data Solutions reported that homes remained less affordable compared to historical averages in 98% of counties analyzed across the U.S. Rob Barber, CEO of Attom, explained the broader challenges:
- “Average workers now must shell out a larger portion of their wages for major homeownership expenses than at any time since right before the housing market tanked in the late 2000s…Despite recent declines in mortgage rates, down payments on typical home purchases have reached four times the average national wage.”
The Good Ol’ Days: The contrast with pre-pandemic affordability levels in Wilmington is stark. In 2019, the metro area boasted an affordability index of 105, and just 36.5% of annualized wages were required to purchase a median-priced home of $235,000.
Bottom Line: Housing affordability is a problem everywhere. However, the strong growth in housing supply, both single and multi-family, in the metro area has helped Wilmington do better than most major areas in North Carolina