Emerging Markets Report 2025

EMERGING MARKET REPORT

Carolina Coast

contents

Co a stal Em e r gi ng Ma rk et s - Carolina & Kure Beach - Emerald Isle - Hampstead - Holden Beach - Leland - Oak Island - Southport - Sunset Beach - Topsail Island UP CO MING MAR K E TS - Burgaw - Castle Hayne - Sneads Ferry EM ERG I NG NE IGH B O R H O O DS

IJCOASTAL.COM | 910.300.5140 | INFO@IJCOASTAL.COM WILMINGTON | CHARLOTTE | LAKE NORMAN | ASHEVILLE | HIGHLANDS

INTRODUCTION 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 2020-2024 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.

CAROLI NA & K U R E Carolina & Kure Beach Sell-Through Over $750K 160

155

145

140

130

Homes Sold

120 100

91

80 60 46

40 20 0 2020

2021

2022

2023

2024

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.

Despite a brief dip in 2023, there was a major resurgence in 2024 that continues the overall upwards trend. A lot of the sales in this market are new construction as the development is also skyrocketing.

EMERALD ISLE Emerald Isle Sell-Through Over $750K 160 152

140

157 140

126

Homes Sold

120 100 80

80

60 40 20 0 2020

2021

2022

2023

2024

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”.

The late development of the town led to a slow increase in population, but skyrocketed due to COVID relocations in 2020 and 2021. As normalcy returned, there is a slight downturn in sales, but its back up to net growth in 2024.

HAMPSTEAD Hampstead Sell-Through Over $750K 80

79

70 61

64

Homes Sold

60 50 44

40 30

26

20 10 0 2020

2021

2022

2023

2024

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, Wilmington and Wrightsville Beach. Many are drawn to Hampstead by its proximity to the coast, home value, and the highly-rated Topsail school system.

Hampstead has seen stead and rapid growth over the last few years. Like many areas, it had a lot of growth during COVID, but the difference wasn’t as exaggerated due to its development over the past decade or so. Because it’s more established, Hampstead has remained a steady upward trend with no dip in 2023.

HOLDEN BEACH Holden Beach Sell-Through Over $750K 96

92 83

84

74

Homes Sold

72 65

60 59

48 36 24 12 0 2020

2021

2022

2023

2024

Holden Beach ranked in the ‘Top 10 Family Beaches in the US’ by National Geographic Traveler’s for its family-oriented atmosphere. The barrier island was purchased in 1756 by Benjamin Holden and for generations, the Holden family lived on the island. In the 1920s, 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.

Holden has seen a little more volatility over the years with a spike after COVID and a decline after the initial rush. However, the stability of the market remains and shows that it is steadily rising back up in more normal conditions.

LELAND Leland Sell-Through Over $750K 72 64

63

Homes Sold

54

65

41

45 36 27 18

13

9 7

0 2020

2021

2022

2023

2024

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 seek a more affordable option 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.

Leland’s development during COVID seemed one step behind Wilmington’s, with it’s huge jump in luxury sales coming in 2021 and continuing in 2022 and 2023. Leland continues to remain one of the fastest developing cities in the Southeast.

OAK ISLAND Oak Island

Oak Island Sell-Through Over $750K 168

160 148

140

142

142

2022

2023

Homes Sold

120 100 80 60

71

40 20 0 2020

2021

2024

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.

The jump of the development and luxury sales skyrocketed during the beginning of COVID but maintained fairly steady with only a slight dip in 2022 and 2023.

There was quite a bit of development during COVID which may explain the sizeable increase in 2024 as those turned around quickly.

SOUTHPORT Southport Sell-Through Over $750K 160 140

140 120

Homes Sold

103

100 75

80

72

60 40 20

21

0 2020

2021

2022

2023

2024

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.

Southport is an interesting area featuring many micro-markets within it. It saw a surge of people coming in for its idyllic lifestyle during COVID and in the aftermath, the majority of the growth and development came from St. James Plantation, which is a separate gated community.

SUNSET BEACH Sunset Beach Sell-Through Over $750K 41

40 35 30

Homes Sold

30 25

24

22

20 15

13

10 5 0 2020

2021

2022

2023

2024

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.

After a big jump in sales, there was a significant decrease last year. However, it continues to be a growing and developing area and overall remains in the positive from before 2021.

TOPSAIL ISLAND Topsail Island Sell-Through Over $750K 207

200

180

175 160

164

Homes Sold

150 125 100 75 66

50 25 0 2020

2021

2022

2023

2024

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.

Topsail was one of the most explosive markets in Coastal North Carolina during COVID and the past few years. The lack of inventory led to the dip in sales in 2023, but the abundance of development & new construction led to a resurgence in 2024.

Up c o m i n g Ma r k e t s The Difference Between Upcoming & Emerging Markets The emerging markets presented so far are markets where the luxury segment has had a higher rate of growth in the past few years and trends show will continue to do so, making these areas an excellent investment.

The upcoming markets listed next highlight areas where there hasn’t been much luxury activity but it is growing little by little and they’re areas to watch out for as they continue to grow and develop. Investors keen on getting in on the ground floor might want to investigate these markets in more depth as they continue to grow into emerging luxury markets.

Our Upcoming Markets Burgaw Castle Hayne Sneads Ferry

B U R G AW Burgaw Sell-Through Over $750K 8 7

Homes Sold

6 5 4 3

3

3

2023

2024

2 1 0

0

0

0

2020

2021

2022

Burgaw is a railroad town that owes its very existence to the Wilmington and Raleigh Railroad Company that routed its tracks across the Burgaw Creek, where a small cross-roads trading post had heretofore existed. In October, 1836, the work was begun on the tracks of the Wilmington and Raleigh Railroad. The original company was chartered in January 1834, and in March 7, 1840, this newly finished railroad line was the longest in the world, 161½ miles. Seat of Pender County and home to the famous Blueberry Festival, Burgaw draws attention with its small town charm.

There is very little luxury market as a mostly agricultural town, but with the expansion of Wilmington and several projects to bring industry to Burgaw, there was a jump in luxury sales and a few more years will likely yield more luxury sales.

C A S T L E H AY N E Castle Hayne Sell-Through Over $750K 16 14

14

Homes Sold

12 10 8

7 6

6 4 3

2

1

0 2020

2021

2022

2023

2024

Castle Haynes is eight miles northwest of Wilmington on the northeast branch of the Cape Fear River and was named for Roger Haynes and the 17-room castle-like plantation home that dominated the area in the 1700s. John Burgwin, builder of the historic Burgwin-Wright house in downtown Wilmington, married Roger Haynes daughter in 1753 and subsequently acquired “Castle Haynes.”

Castle Hayne has seen substantial development over the past several years as a way to enjoy the perks of Wilmington while having the ability to own more land and get brand new construction for reasonable prices.

SNEADS FERRY Sneads Ferry Sell-Through Over $750K 16 14

13 12

Homes Sold

12 10 9 8

8 6 4

3

2 0 2020

2021

2022

2023

2024

Sneads Ferry is perched on the water in Onslow County, North Carolina, between Jacksonville and Wilmington and the inlet where the New River flows into the Atlantic Ocean. Sneads Ferry, first known as the lower ferry, was renamed for Robert Snead, an attorney who settled here in 1791. The first license to operate a ferry here was granted to Edmund Ennett and that the first post road from Suffolk to Charleston crossed here. The post rider, passing through, brought the news of the battle of Lexington in 1775.

Sneads Ferry has remained small due to being a more remote coastal town, so the luxury market has remained small, but over several years and continual development, it is expected to continue growing.

Em e rgin g Nei gh bo rh o o ds What Qualifies an Emerging Neighborhoods & Micromarkets in Coastal NC? Emerging neighborhoods and micromarkets are subdivisions and niche areas that are seeing substantial growth and a jump in price point, either through demand or from people flipping properties there and increasing the value of homes there.

Most of these neighborhoods are off the beaten path of where people would be looking in Wilmington and the surrounding area, but are proving to be a good investment and a more affordable option that doesn’t compromise on lifestyle.

Our Emerging Neighborhoods & Micro-Markets • Carolina Place

• Sunset Reach

• Cargo District

• Castle Hayne

• Brooklyn Arts District

• Myrtle Grove

• Deepwater

• Porters Neck

• Shandy Point • Odgen

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