I enjoy researching market trends here on the Outer Banks and was surprised when I compared Zillow’s Home Value statistics across our communities. Year over year the Outer Banks has experienced solid growth, with home values in all compared communities rising an average of 3.225%. But one community stood out as a clear outlier, and that’s the sleepy fishing village of Wanchese. Was it really true – was Wanchese real estate growing faster than anywhere else on the Outer Banks?
As you can see, Wanchese isn’t just number one, it’s almost triple the nearest community (Waves at 4.8% year over year growth). So what would cause properties in Wanchese to appreciate so quickly? I have a few thoughts on this.
Why Wanchese?
1. The Law of Supply and Demand
In the real estate market, supply and demand are the primary driving factors in growth rate and there just isn’t that much Wanchese real estate available. Families have lived there for generations, hardworking fishermen have built their homes and raised their children there. Almost the entire community lives in a small residential area and much of the rest of Wanchese is protected marshland and not buildable. The town of Nags Head had 191 single family home sales in 2019. Wanchese had 5 sales. In fact from 2010 til 2019, there were a total of 51 single family home sales in Wanchese. That’s an average of 5 per year. But the average value of a home sold in Wanchese has gone up almost 38% in that same 10-year span.** And the Zillow home value index reflects an even more optimistic opinion of Wanchese real estate values.
** Based on information from the Outer Banks Association of REALTORS® MLS for the period 1/1/2010 through 12/31/2019.
2. The Wicked Tuna effect
Wanchese is home to most of the commercial fishing on the Outer Banks, as well as a large number of inshore and offshore charter fishing boats. When Wicked Tuna was at the height of its popularity, you could find the same guys you saw on TV every week just hanging out at places like the OBX Marina. In fact there was at least once that I was on my way to head out for some evening drum fishing and there was a helicopter overhead gathering aerial footage for Wicked Tuna. Having TV crews in town and popular “stars” from a TV show drives attention and creates excitement. It also creates a demand for rental homes so that people stationed there have a place to stay. This ties in with reason #2.
3. The UNC Coastal Studies Institute
Tucked away on the roadside between Manteo and Wanchese is the UNC Coastal Studies Institute – a cooperative education facility led by ECU but it also hosts students and staff from NC State, UNC-Chapel Hill, UNC Wilmington and Elizabeth City State University. With dozens of full time staff and a revolving group of students and professors from across the state, this too has grown over the years and created a local demand for housing – both home ownership and long term rentals. The Coastal Studies Institute holds public events and open houses several times a year, and for locals who haven’t visited it’s a beautifully built structure and has some amazing architectural features. Check it out sometime!
4. Commercial Fishing and Farming
I include farming here because there’s a growing oyster farming industry on the Outer Banks and some of our local farmers have really dialed in the process of growing and harvesting oysters. But beyond that, so much crabbing, shrimping, and fishing happens in Wanchese it really is the backbone of the community. Wanchese is in a great spot geographically, it’s actually closer to Oregon Inlet than any other marina on the Outer Banks, which may explain why Wanchese has multiple marinas. It also sits adjacent to the Roanoke Sound section that runs by Bodie Island, which is a great area for oyster growing. In fact if I ever need to pick up some fiddler crabs on the sound, Bodie Island is where I go to catch them.
5. Wanchese didn’t appreciate until it was appreciated
Here on the Outer Banks we have a tendency to gravitate toward things that suit our lifestyles – everyone wants an oceanfront home one day, boaters favor soundfront properties with docks, families want to live near our great schools, and surfers want a place close to the breaks. For many years Wanchese was viewed as a distant cousin of the Outer Banks, but as time goes on people have finally started to appreciate the unique set of features Wanchese now offers – a leading coastal studies institute, unique geography for charter fishing or oyster farming, in-demand housing and maybe a little bit of celebrity if you hit the marinas on the right day.
Taken together, these factors have contributed to Wanchese real estate being a sought-after commodity here on the Outer Banks. Those who want to enjoy a career fishing or oyster farming want to be close to their boats. Those who study or teach at the Coastal Studies Institute need a place to stay. And there just aren’t that many places to stay in Wanchese, thanks to a hardy group of fishermen who have been hard at work through the ups and downs of commercial fishing regulation changes in NC. But if you are lucky enough to find a waterfront property in Wanchese, you might have a hidden gem that gets your boat in the deep blue faster than anyone else here at the beach. And based on the growth rate in home prices, you might just have a solid investment on your hands as well.
Want a fun day in Wanchese?
Plan a day in the summer, preferably cobia season (May/June)
Call up Aaron Beatson with the Cobia Killer and book a half day charter in the afternoon
Cruise by the UNC Coastal Studies Institute on your way into town and walk through
Have lunch at O’Neal’s Sea Harvest (shrimp salad roll and softshell BLT are good options)
Walk around the docks and check out the boats and weigh station at OBX Marina
Meet Captain Aaron at the Wanchese Marina and catch some giant cobia!