The Supply Problem In Chapel Hill

Dated: 03/10/2017

Views: 228

An article this week on discussed how supply and demand affects home prices in Chapel Hill.  Seeing as how there is some debate on the matter, I thought I would give you my take.

Chapel Hill is... shall we say... hesitant about building new housing.  Regardless of the reasons behind that hesitation, that's simply a fact.  While that hesitation is good news for surrounding areas like North Chatham County that gets some of that spill-over demand, that doesn't address the issue that people still want to live in Chapel Hill proper.


Each sector of the market, from rentals to starter homes to luxury estates, has to keep up with its own sector's demand in order to keep prices from rising quicker than inflation (creating a bubble).  When demand remains high and housing inventory doesn't catch up, the price of existing inventory goes up because people are willing to pay that higher price to live in that area.  Building new apartments doesn't have much effect on the single-family housing market - only building more single-family housing. 

This isn't a problem that's exclusive to Chapel Hill.  There is a nationwide supply crunch and some towns (such as Raleigh) are doing better with making sure there is enough inventory to keep up with demand.

Blog author image

Michael Cunningham

Michael Cunningham is a Real Estate Broker as well as the go-to tech and marketing wiz at Domicile Realty. A native of Tennessee, Michael arrived in Chapel Hill by way of Washington, DC where he help....

Latest Blog Posts

Decoding Personality: The Secret to a Happy (and beautiful) Home

     Relationships, values, and decisions- the intangible aspects of home that very much play into our happiness and satisfaction. Understanding different personality types may

Read More

Make the Switch to Briar Chapel!

Thinking about making a "switch" this year?  Come visit the fastest growing neighborhood in all of North Carolina, this Saturday from 1-4pm and tour all of Domicile Realty's fantastic homes for

Read More

House Hunting and Houzz Hunting- Home is all about style!

It's crazy to see how closely interior design searches track with real esate, but it makes sense. If we are dreaming of a new home, chances are it's because of a major life event, we've out-grown

Read More

Cabinet Refresh! Painting Tips for Lasting Beauty

Painting your kitchen cabinets, either for resale or as an update, can be a fantastic way to breathe new life into it. Painting can be tricky because it has a propensity to chip and peel over time

Read More