By Gene Galin
Pittsboro, NC – As the year 2025 draws to a close, the real estate market in Chatham County, North Carolina, presents a complex picture characterized by rising prices, limited inventory, and affordability challenges for average families. In my recent discussion with Eric Andrews of Realty World Carolina Properties, the stark realities of the current housing landscape were laid bare, revealing the struggles faced by families in securing affordable homes in a rapidly changing market.
A Market at a Crossroads
Chatham County’s housing landscape in 2025 reflects broader national trends of tightened affordability, shifting demand, and evolving buyer preferences — but with uniquely local twists. While some segments show resilience, many households find it harder than ever to buy, sell, or trade up. With average home prices well above the means of typical local incomes and rental rates climbing, questions linger about the county’s future as an equitable and sustainable community.
According to Eric, regular families — from teachers and city workers to first-time buyers — are increasingly sidelined by a market that seems tilted toward deep pockets, relocating professionals, and speculative land buyers. This situation has sparked renewed conversation about housing accessibility, the role of workforce housing, and what it will take to retain the people who make Chatham County thrive.
Mounting Affordability Crisis
Prices vs. Local Incomes
In 2025, the average home price in Chatham County hovered near the mid-$700,000s — a figure far out of reach for most local households. For context, agents report average family incomes between $60,000 and $70,000 in the county, which realistically supports home purchases of roughly $280,000 to $320,000 under traditional underwriting rules. Those homes, however, are virtually nonexistent in the current market.
The gulf between typical incomes and median home prices illustrates a sharp affordability squeeze. Even completing a 10–20 % down payment on a $700,000 home requires tens of thousands in upfront cash — unattainable for many working families without intergenerational wealth. Compounding this, mortgage interest rates remain elevated compared with the ultra-low levels seen earlier in the decade, further inflating monthly payments.
This affordability gap mirrors national patterns: analysts note that stagnant wages, high living costs, and constrained housing supply have pushed many buyers to remain renters longer, even as rental rates rise. Recent industry insights show apartment rents hitting multi-month highs, underscoring the squeeze facing both buyers and renters.
The Shift from Buying to Renting
Historically, the mantra in real estate has been that buying is cheaper than renting. However, Andrews highlights a significant shift in this dynamic. “It’s cheaper to rent than to buy right now,” he states, underscoring the financial strain on families trying to enter the housing market. With average family incomes in Chatham County ranging from $60,000 to $70,000, potential homebuyers find themselves trapped in a cycle where the cost of homeownership far exceeds their financial capabilities.
The gross rent multiplier—a metric used by investors to evaluate the profitability of rental properties—indicates that current market conditions are unfavorable for landlords as well. For instance, a $400,000 home may require a mortgage payment of around $3,200, while rental prices hover between $1,800 and $2,200, leading to a negative cash flow scenario for potential investors. This situation discourages new landlords from entering the market, further exacerbating the housing shortage.
Defining Workforce Housing
For many leaders and local professionals, “workforce housing” refers to housing affordable to teachers, police, nurses, firefighters, municipal employees, and others whose labor underpins community life. These essential workers are increasingly forced to commute from distant towns or leave the area altogether because they cannot afford to live where they work.
The implications are profound: when teachers and first responders commute 45 minutes or more, community cohesion frays and local services strain. In past decades, middle- and lower-income workers could realistically find homes within county limits — but recent price surges have shifted that dynamic.
The Impact on Workforce Housing
Andrews emphasizes the critical need for workforce housing, which he defines as housing for essential community workers such as teachers, police officers, and healthcare professionals. These individuals are vital to the community’s functioning, yet many are forced to commute from neighboring towns due to the high cost of living in Chatham County. The lack of affordable housing options not only affects these workers’ quality of life but also undermines the community’s cohesion.
With limited affordable housing stock, families are increasingly pushed into areas like Siler City, where prices remain somewhat lower, but the stigma and distance from Chatham County’s core community continue to pose challenges. The exodus of essential workers to more affordable regions threatens to diminish the community’s vibrancy and accessibility to critical services.
Economic Divide and Community Fabric
Andrews recalls his early years as a teacher and coach — when he earned modest wages and lived in the same grocery store as his students’ families — as emblematic of a bygone era. Today, such experiences are rare: many teachers must commute to places like Sanford, Siler City, or even farther to find reasonably priced housing. The upward spiral of home values has reshaped not just the market but the social fabric of the community.
Migration Patterns in 2025
Growth in Chatham County isn’t merely local; buyers from across the country continue to arrive. In addition to traditional inbound migration from neighboring counties such as Wake and Orange, Eric points out that there are plenty of newcomers from Florida, the Northeast, and the West Coast. While some buyers relocate for lifestyle reasons, others cite climate, family, or employment opportunities as motivating factors. These diverse migration flows exert unique pressures on housing supply and community infrastructure.
Yet even among new arrivals, not all are relocating to Chatham County itself. Many highly compensated workers — from tech or university sectors — opt for new subdivisions or luxury developments, while middle-income buyers often look outside the county for viable housing options.
The Role of Interest Rates and Market Dynamics
The current interest rate environment also plays a significant role in the stagnation of the housing market. With average mortgage rates hovering around 6.25%, many homeowners who secured loans at historically low rates of 2.75% to 3% are reluctant to sell and move, effectively locking up inventory. This phenomenon creates a bottleneck in the market, stifling the natural cycle of buying and selling homes.
Andrews notes that this stagnation is compounded by the influx of new residents from other states, including California and Florida, who are drawn to North Carolina’s more affordable living conditions. However, their presence further drives up demand and prices, making it even more challenging for local families to compete.
The Sewer Constraint
One of the region’s most persistent housing constraints isn’t economic — it’s infrastructure. Without adequate sewer capacity, development is either limited or rendered cost-prohibitive. Chatham County’s minimum land requirements — including substantial lot sizes where municipal services are unavailable — further restrict the pool of potential affordable lots.
Expanding sewer access or enabling denser development patterns could open new opportunities for varied housing types, from townhomes and duplexes to smaller single-family lots. As local leaders grapple with planning and zoning decisions, infrastructure investment emerges as a key driver of long-term housing outcomes.
The Land Sales Market: A Different Story
While residential sales face significant hurdles, land sales in Chatham County have shown resilience. Andrews reports a modest improvement in land sales in 2025 compared to previous years, with prices rising from approximately $14,000 to $30,000 per acre. This uptick is attributed to appreciation and demand from developers looking to establish residential subdivisions.
Andrews specializes in entitlement contingency contracts, working with national buyers to secure land for future development. The demand for larger parcels of land remains strong, particularly for residential and agricultural zoning. However, the lengthy approval process—now averaging 24 months—can pose challenges for developers and impact the speed at which new housing can be brought to market.
The Future of Housing in Chatham County
As Chatham County moves into 2026, the challenges facing the real estate market are multifaceted. The need for affordable housing, the impact of interest rates, and the influx of new residents all contribute to a complex landscape that requires strategic solutions. Andrews advocates for a focus on workforce housing and community development to ensure that essential workers can live and thrive within the communities they serve.
Watch on YouTube – 2025 year end Chatham County Real Estate Market Update (part 2) – 12.23.25
Chatham County Real Estate Challenges: Affordability Issues and Rental Market Insights for Families in 2025.
00:20 Chatham County families struggle to afford homes amidst rising real estate costs.
- Renting is currently cheaper than buying, contradicting the traditional belief that buying is more economical.
- Investors find it challenging to cover mortgage payments with rental income due to high property prices.
02:46 Challenges for landlords and workforce housing affordability in Chatham County.
- Landlords struggle with negative cash flow as rental prices fail to cover mortgage payments, limiting new investments.
- The average family income restricts affordable housing options, highlighting the need for accessible workforce housing.
04:52 Chatham County faces housing affordability challenges for working families.
- Many local workers commute from Sanford due to high housing costs, limiting homeownership for average families.
- The average income in Chatham County falls short of what is needed to afford homes priced around $725,000.
06:56 Sewer capacity and housing challenges impact Chatham County real estate market.
- Expensive land requirements escalate costs for homes without sewer capacity, with minimum lot sizes affecting prices.
- Workforce housing is essential for community sustainability, yet many workers commute from afar rather than living locally.
09:05 Chatham County faces real estate stagnation due to low inventory and interest rates.
- Homeowners with low interest rates are reluctant to sell, causing a bottleneck in market movement.
- Increased demand from relocating residents adds pressure to the already tight housing inventory.
11:09 Chatham County sees varied land sales trends amid regional migration.
- Influx from states like Florida is driven by residents seeking better climate and family proximity.
- Land sales in 2025 improved slightly from 2024, but were still limited compared to 2023.
13:13 Chatham County land prices have significantly increased in 2025.
- Average prices rose from $14,000-$15,000 to $27,000-$30,000 per acre due to appreciation.
- Demand is primarily for raw, unrestricted residential and agricultural-zoned land, ranging from 10 to 300 acres.
15:34 Importance of local relationships in land evaluation.
- Building rapport with planning departments is key for successful land assessments.
- Understanding local planning processes prevents delays and improves evaluation accuracy.