Chapel Hill residents are having a difficult time finding housing as interest rates and home prices continue to rise.
Since 2017, the average rent in Chapel Hill has increased by 37 percent, according to the Town of Chapel Hill's 2022 Affordable Housing Annual Report.
Michele Burris, the managing broker and owner of Local Market Realty in Chapel Hill, said the demand for housing in Chapel Hill outpaces the supply. More people are moving to Chapel Hill which increases the demand for housing, she said, but new construction cannot keep up with the growth.
Burris added that there are a number of things that make residents nervous about the housing climate.
“What I’m seeing right now is basically we have buyers who are anxious and worried about the interest rate hikes, along with stock market instability and the election instability,” she said.
When the COVID-19 pandemic began, interest rates were low. Burris explained that people often raised the price of their houses because the interest rates were so low.
After the height of the pandemic, Joan Mueller, a real estate agent and broker in Raleigh and Durham said more people realized the flexibility of remote work. People also moved to be closer to family and to have space to work from home, she said.
“That was what was really pushing the demand of real estate,” she said, “coupled with the fact that rates were truly changed,” she added.
Muller added that it is a lot more expensive to buy a house this year in the Triangle because interest rates have gone from around 2 percent to around 7 percent.