Unsurprisingly, more people are vacationing and purchasing property in Emerald Isle, North Carolina. What’s not to like? It’s the Holy of Holies. It has the most beautiful beaches along the Outer Banks. It is the Crystal Coast. It has some of the clearest water. Right now, there is an incredible appreciation for real estate, and despite increasing prices, sales have increased dramatically in the last couple of years. It was a feeding frenzy during and right after the COVID-19 pandemic, and prices went through the roof. Thankfully, things have slowed as the Days on the Market in Emerald Isle now exceeds 100 days, but upward price trends remain strong. I was involved in multiple offer situations with bids exceeding the list price by tens of thousands of dollars because there was so little new construction and inventory. Now, homes are selling for a tad less than the list price. A tad. Yet, home ownership here continues to make sense. It is common for homes in Emerald Isle to rent for $4,000 and up for a week during June, July, and August. You can pick up $50,000 in gross rental income to offset the mortgage payment on a 1 million dollar home. Even land sales are off the charts. I did a deal where a soundfront lot was listed for $600,000 and sold for $750,000. With all this interest, can Emerald Isle become a northern version of 'Dirty Myrtle?' Read to the end to find out.
Let's examine some of the dynamics currently in play in Emerald Isle. For starters, while the town has a large footprint, occupying the western half of Bogue Banks, a barrier island off the southeast coast of North Carolina, it is a small town, roughly 13 miles long and less than a mile wide at its widest. Although the town is only 67 years old, it is fairly built out, having fewer than 900 undeveloped lots. The town estimates that in the next 40 years, the town expects a total build-out.
Second, while the town has three condominium complexes built in the early 1990s, no more will be built since the town passed a 40-foot height limit on new construction a decade ago. Compare this number of three to the over 200 condominium complexes in Myrtle Beach. Bottom line: The town is not looking to go up but to keep things on the level.
Third, another feature capping large-scale construction is sewer systems, or the lack thereof, in Emerald Isle. Sewer systems are the infrastructure that conveys sewage and surface runoff using sewers. This sewage ends at the entry to a sewage treatment plant. Emerald Isle will never, there’s that strong word ‘Never,’ have city-wide sewers because the sewage treatment plant would have to be on the mainland. All raw sewage and surface runoff like stormwater, meltwater, and rainwater would have to be pumped under Bogue Sound, and the environmental issues that arise make that option untenable. Instead, every building in Emerald Isle has an individual septic system, an onsite wastewater treatment system that collects wastewater from your home, retains the solid materials, and returns treated effluent to your property’s soil.
Fourth, Emerald Isle's small business district has roughly 5% of the land. The founders of this town wanted to maintain a family-friendly atmosphere, but they forgot that some families didn’t want to have to bring all their food and cleaning supplies. Consequently, there are limited opportunities for new commercial development. A few vacant parcels zoned commercial exist on Reed and Crew Roads, but these are not ideal. This limits the food options in town. Right now, the town has two breakfast options, one of them being my Flip Flops Donut and Bagel Shop. The town has several restaurants catering to the lunch crowd and three upscale restaurants. Oh, and we have 5 or 6 pizza shops. And while on the topic of eating, the town will never get franchise food restaurants like McDonalds, Starbucks, or Chick-fil-A. One reason for the dearth of restaurants is, wait for it, the reliance on septic systems. There is, however, a slight chance that the town may create a small-scale, in-town sewage treatment facility for the commercial district… when pigs fly.
So, after 67 years, how well is the town of Emerald Isle managing its growth? Is it still a family-friendly destination for vacationers and residents, or is it turning into a northern version of Dirty Myrtle? I am here to tell you "YES!" to a family-friendly destination and "NO!" to 'Dirty Myrtle.' But don’t believe me. Surveys say that Emerald Isle’s three most valuable assets for potential residents in 1957 were beautiful beaches, a family-friendly atmosphere, and a residential atmosphere. These remain the three most valuable assets for homeowners and homeowner wannabees in 2024. And, if you are a vacationer, surveys say you are looking for beautiful beaches, a family-friendly atmosphere, and ease of location. Emerald Isle has that in spades. So come on down! And when that new Interstate 42 is completed in the next five years, the commute from the Raleigh-Durham area will be about an hour shorter. If you learned something, do me a favor and hit the subscribe button; it’s free. Check out my book, “Live Where You Vacation,” on Amazon and Kindle. Be safe and have fun, and I will see you next week. Thank you so much for reading.
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