Outer Banks Faces Housing Crisis Amid Tourism Boom

News Summary

The Outer Banks in North Carolina is experiencing a housing crisis as the tourism industry booms. With limited hotel options, vacation rentals are proliferating, making affordable housing scarce for local residents. Local businesses are stepping in to buy homes for employee housing, highlighting the community’s struggle against rising costs and the need for sustainable solutions.

Outer Banks Faces Housing Crisis Amid Tourism Boom

In the scenic Outer Banks, North Carolina, a sweet yet challenging reality is unfolding as the booming tourism industry clashes with a serious housing crisis. It’s a beautiful area known for its unique geography, charming vacation rentals, and rich history that spans back to the legendary Wright Brothers and the notorious pirate Blackbeard.

The Roots of the Problem

The Outer Banks has long been a favored destination for vacationers looking to enjoy the stunning coastline. However, with limited hotel options due to the area’s shifting sandbar geography, the bulk of accommodations come in the form of vacation rentals. That’s great for tourists but poses a dilemma for the local workforce that struggles to find affordable housing.

As the president of Twiddy & Company, one of the local vacation rental businesses, points out, the Outer Banks seems custom-made for a vacation home market, yet it lacks the necessary infrastructure for a robust hotel business. Having started with a single office in Duck back in 1978, Twiddy & Company has grown to manage over 1,000 rental homes, employing approximately 135 full-time staff and over 300 seasonal workers, most of whom are locals.

The Impact of Tourism

The numbers are staggering! In 2023 alone, the counties of Dare, Currituck, and Hyde reported a jaw-dropping nearly $2.8 billion in tourist spending. With tourism accounting for over 45% of jobs in Dare County, it’s no surprise that the increasing popularity has made affordable housing a rare gem. Many properties are being converted to vacation rentals, which only escalates the housing scarcity for year-round residents.

Business Solutions to the Housing Crunch

In a bid to provide relief, local businesses have stepped up by purchasing homes to offer subsidized housing for their employees. This is becoming a crucial necessity as the number of long-term rental options dwindles in the market. The idea of the “Iron Triangle” is gaining traction, emphasizing investing in community resources like healthcare, education, and housing as a way to foster economic responsibility.

Interestingly, Twiddy & Company doesn’t just focus on vacation rentals. They also opened a charter school back in 2012, utilizing a historic schoolhouse to support the local community. They believe in giving back, especially since the area sees about 500 permanent residents in Corolla who have to face an influx of tourists during peak seasons.

Community Initiatives and Challenges

To help tackle the housing crisis, the Lighthouse Fund for Sustainable Tourism has been launched, aiming to address local challenges related to tourism and promote solutions for affordable housing. Yet, it’s evident that many businesses are contributing to the rising housing costs by snatching up homes, leaving non-employee residents without many affordable options.

There’s a growing consensus among stakeholders that better communication and collaboration across county lines is essential to effectively address tourism’s impact and the housing shortage. Regulations aimed at creating more long-term rental opportunities for the local workforce, such as those recently approved in Nags Head, are a step in the right direction.

Working Toward Solutions

As the Dare Community Housing Task Force works to understand the unique development processes affecting small-scale communities, local business managers are encountering difficulties in maintaining stable staffing levels due to housing instability. The residents and leaders are recognizing the critical need for compromise and collaboration to pave the way toward better housing solutions.

Amidst these challenges, there’s hope. By forging partnerships and pooling resources, the Outer Banks community has the potential to create a more sustainable and livable environment for both residents and the tourists who flock to the incredible shores year after year.