Housing in Carrboro: a brief overview

Housing in Carrboro is a complex and often debated issue. Conversations frequently center on affordable housing, funding strategies, homelessness, and the pressures of rising rents, home prices, and property taxes. This article offers an introduction to housing challenges in our town. In the coming months, The Carrborean will take a closer look at homelessness, affordable housing, and housing market trends to help readers gain a deeper understanding and find resources for further information.

The housing market

Data points:

• $95,000 increase in median home price from 2021-2024 in Carrboro (29% increase). (Source: Triangle MLS/Allen Tate Realtors)
• $145,000 increase in CHCCS district (30% increase). 

Source: Triangle MLS/Allen Tate Realtors

According to data provided by Steven Lambeth at Weaver Street Realty & Auction, Chart 1 shows a general downward trend in market inventory over the past 10 years with notable lows during the pandemic and a recent uptick in homes for sale this year. Mr. Lambeth believes this phenomenon is likely due to a combination of a reduction in mortgage rates and housing market participants resetting their mortgage rate expectations. 

Chart 1. Homes for sale over time

Median sales price is the highest it has been since June 2023, which was its all-time high (Chart 2). When the housing market was hurt by the increase in mortgage rates that started in 2022, affordability decreased and many sellers didn't want to let go of the mortgage rates they had secured. Days on market have increased so buyers now have more time to vet the properties they might make an offer on. 

From the housing affordability index chart (Chart 3), Mr. Lambeth inferred that a reduction in mortgage rates could help buyers even if the median sales price continues to increase. 

However, increases in home sales prices drive up housing values across the market, leading to increases in property tax. And all of this contributes to making living in Carrboro increasingly unaffordable.

Homelessness

In Orange County:

• 148 people experienced homelessness in 2024 (Likely a low estimate not considering those who may be sleeping in cars, uncounted, etc.). 
• Homelessness has increased by 14% over the past decade. 
• Only 11% of those who found permanent housing returned to homelessness, below the national average of 18%. 

Source: Orange County Partnership to End Homelessness

Homelessness is experienced by many people in Orange County, including in Carrboro. The Inter-Faith Council for Social Services (IFC), located on Main Street, provides food and shelter through several programs. For example, IFC’s Safe Outdoor Living Campaign is an initiative that seeks designated land where people experiencing homelessness can safely camp or park temporarily while working toward stable housing. The effort aims to provide short-term safety and stability for those who must live outdoors, reducing risks associated with unsanctioned encampments. 

But the lasting solution to homelessness ultimately lies in expanding access to affordable housing. “The biggest issue here around homelessness is the cost of housing,” said Jackie Jenks, President and CEO of IFC. “We don’t have housing that is affordable for everyone.”

Carrboro is a geographically bounded and densely built town, so the development of public land, such as park space, may have to be a necessary concession to create real affordable housing units. 

“Anytime we look at land that’s available, we should be thinking: what could we do with that to take care of our neighbors?” Jenks said. 

Affordable Housing in Carrboro 

Data points:

• 56% of residents in Carrboro rent their homes. Of those, 49% are rent burdened (paying more than 30% of their total income on rent each month) (Source: American Community Survey)
• A 1- bedroom apartment costs $1,402 to rent each month in Chapel Hill-Carrboro, up $310 from 2021 (Source: CoStar/Eller Capital)

Affordable housing is typically defined as housing that costs no more than 30% of a household’s income, including rent and utilities. When prices exceed that threshold, residents are considered cost-burdened and may struggle to maintain stable housing. Rising housing costs across the region have increasingly pushed lower-income residents toward instability and homelessness.

Carrboro, like the rest of North Carolina, cannot enact rent control due to NC state law GS 42.14.1. This regulation does, however, allow city governments to regulate rents for property they own, enact regulations on property assisted with Community Development Block Grant Funds, and enter into agreements related to federal housing properties. 

To bridge the gap between income and rent, federal housing vouchers remain a crucial tool but are limited in availability. IFC advocates for preserving “naturally occurring affordable housing” (NOAH), older units that remain affordable without subsidies. When such properties are purchased and redeveloped, they often become market-rate or luxury places, Jenks said. To prevent that, towns or non-profits can buy those homes and try to control the rent level. 

Jenks suggested that Carrboro could explore a program similar to Chapel Hill’s recent revolving loan fund, which helps nonprofits purchase and preserve affordable housing before private developers can acquire it. 

“Ultimately, it’s going to take investment — from towns, from individuals, from everyone,” Jenks said. “The federal government isn’t going to come through for us. We have to take care of our neighbors.” 

In her comments to the Orange County Affordable Housing Coalition, Mayor Barbara Foushee noted that “Carrboro has a designated revenue stream to support affordable housing efforts and are currently dedicating a full 2 cents on our property tax rate for our affordable housing special revenue fund” (adding another half cent in 2026). This fund can be used to subsidize affordable housing projects or to assist with home repairs as in NOAH. The Town previously worked with Pee Wee Homes to build affordable housing units.

Mayor and Council Members have said that the new unified development ordinance could create more affordable housing opportunities. 

Some local builders are exploring creative ways to expand Carrboro’s housing options. Smaller-scale living, such as tiny homes or modular units, has emerged as a possible solution to the town’s limited land and rising housing costs.

Darryl Jones, of the West End Building Company, says that tiny homes may offer “a glimmer of hope” for affordable housing in places where it is scarce. These compact homes emphasize outdoor space like patios and decks over interior square footage and can support flexible living arrangements.

For example, a backyard accessory dwelling unit could house an older family member, or a tiny home might sit in the grandparents’ yard while their children and grandchildren occupy the main house. Such intergenerational setups could strengthen family ties and make caregiving more manageable. 

Jones added that living affordably amid wage stagnation and high costs may require people to “live in a smaller way,” rethinking not just housing size but what defines home in a community like Carrboro.

The Town of Carrboro provides information resources on affordable housing on its website. What particular housing issues do you want to know more about? Let us know at info@thecarrborean.com