We’re sharing a few reasons renters in the Wilmington area may not be motivated to buy a home in the current market.

It’s no secret young professionals and families are renting properties at a higher rate than previous generations. Boomers (and even a few millennials) by and large purchased homes in their late 20s and certainly by their 30s. But with rent rates at an all-time high – what is the case for renting in 2024?

Well in the Wilmington area, the case is reflective of the rest of the United States. 

Today we will share a few reasons why renters are not motivated to buy right now, even if they have money for the down payment on a home.

Low inventory

Since 2020, inventory has decreased significantly in both Wilmington and across the country. Sure, interest rates are expected to climb down slightly this year. But in the Wilmington area prices are still steadily climbing. A price increase combined with low inventory will keep affordable home prices out of reach for many potential buyers. Low inventory makes the housing market competitive and tricky for anyone, but especially buyers entering the market for the first time. 

Rent can go down

Some economists are projecting rent rates to actually go down in the near future. This could especially be true for Wilmington, as a number of affordable housing and multi-unit housing structures are currently under construction. With an increase in apartments and condos, the market pricing will become more competitive — a good thing for renters. 

Student loans 

Many young professionals have years to go before they can pay off their student loans. As federal payments begin to help subsidize these payments for individuals, we’ll see how it affects the housing market. Some say this will free up young professionals to move out of their parents homes and into an apartment of their own, while others think it could help renters finally swing a home.

UNCW and Cape Fear Community College

The Wilmington area is home to two higher education institutions — The University of North Carolina Wilmington and Cape Fear Community College. Cape Fear has seen considerable growth in the last five years. In fact last year, CFCC became the 5th largest community college in the state. 

In 2023, UNCW reported it had more students than beds for its fall semester. As these two institutions grow, the area will continue to see a demand for rental housing across New Hanover County. 

Want to learn more about our community? I specialize in relocating people to the Wilmington area, like I did many years ago. Check out my home buying guide FOR FREE here, which will help you learn about buying a home specifically in our market.