Local Business Owners in Duck Turn to Landlording Amid Housing Crisis

Local businesses in Duck are facing a housing crisis as costs rise dramatically.

News Summary

In Duck, North Carolina, rising housing costs have led local business owners to become landlords to provide affordable housing for their employees. The increase in housing prices, with average rents nearing $3,000 and home prices approaching $1 million, is creating significant challenges in staffing for businesses. As the local economy becomes increasingly strained, owners are taking creative measures, including purchasing homes for employee housing. The community faces a critical need for solutions to address the housing crisis before it jeopardizes economic stability.

High Housing Costs Make Landlords of Local Business Owners in Duck, North Carolina

In Duck, North Carolina, the dream of living and working by the beach is quickly turning into a real estate nightmare for many local businesses. Duck, a charming coastal town, is known for its picturesque views and summer tourism rush, but rising housing costs are making it incredibly hard for business owners to find and keep reliable employees. Residents and business owners are facing challenges that have led some to dive into the world of becoming landlords, just to keep their operations running smoothly.

The Housing Crisis Hits Hard

Leigh Raskin, a restaurant owner in Duck, shared her struggles to hire staff amid growing housing prices that have skyrocketed in recent years. Despite having a pool of qualified applicants ready and eager to work, it simply isn’t feasible to pay wages that would allow these employees to afford living nearby. The situation worsened when a potential housing arrangement fell through. Raskin had been looking at renting a four-bedroom vacation rental but lost the opportunity due to the owner’s worries about long-term leases without guaranteed tenants.

The numbers speak volumes about the gravity of the situation. According to the U.S. Census, Duck has only 275 occupied housing units out of a staggering total of 2,941. With a population hovering around 700 during the off-season, that number swells to about 7,000 during the busy summer months, creating a remarkable demand for places to live. The average rent has reached approximately $3,000 per month, while home prices have soared to just under $1 million. Compared to 2020, home prices in Duck have risen nearly 75%, leaping from $580,000 to current levels.

Labor Shortages Spread Across Duck

This housing crisis isn’t unique to Raskin. Jason Mailand, the general manager at Duck Valley Outfitters, has confirmed that finding affordable housing has become a widespread issue. It’s not just Duck that’s feeling the heat; upscale vacation spots across the U.S. are experiencing similar labor shortages due to housing crises. Wes Stepp, owner of local eateries, has taken matters into his own hands by purchasing a home strictly for employee housing, charging rent between $400 and $600 per month. However, this arrangement only covers his mortgage and utilities, and he faces costs alone during the slow winter months.

Judith Fisher manages Aqua Restaurant and Spa and notes that many H-2B visa workers from places like Jamaica often depend on housing provided by the business owners themselves. Meanwhile, Clark Twiddy, the president of a local company, has acquired over 30 homes specifically to help address these challenges, showing that companies are getting creative to ensure their employees have a place to call home.

The Strain of Rising Costs

With homeowner insurance rates seeing hikes of up to 45.1% in the Outer Banks beach communities, the rent for essential workers is only expected to rise. This unexpected expense of providing subsidized employee housing is becoming a standard part of doing business in Duck. However, offering housing comes with its drawbacks, such as reduced job mobility for employees, creating a situation where they might feel tied down to their employer.

The community faces additional challenges with students who typically return for seasonal jobs but leave for school in the fall. Despite proposals for new housing projects, local opposition has thwarted efforts in the past, such as a rejected $35 million state funding initiative intended for affordable housing. The community is becoming increasingly aware that the strained housing market needs solutions before it affects their economic stability.

Looking Ahead

Experts agree that increasing the housing supply is crucial for alleviating the local housing crisis. Growing anti-tourist sentiments among locals reflect frustration as rising costs are often tied to booming tourism. To combat these trends, organizations like the Lighthouse Fund for Sustainable Tourism are striving to develop housing solutions specifically for essential tourism workers in the Outer Banks. It is also encouraging to see other tourist-heavy regions, such as Gulf Shores, Alabama, working diligently to build affordable housing for their workers.

Research shows that cooperation between private entities and public institutions is vital in developing the necessary solutions to address housing shortages like those currently facing Duck and similar tourist towns. For now, aspiring employees are finding themselves seeking rentals in advance of securing jobs, creating yet another hurdle in an already challenging job market. The outlook may seem dim, but with ongoing efforts and community support, there’s hope for a brighter future where living and working in Duck isn’t just a dream for locals.