2025 Economic Trends: Growth, Opportunity, and Local Challenges
As we head into 2025, Southeastern North Carolina finds itself at a pivotal moment. Economic growth in our region is no longer a possibility—it’s a certainty. Communities either grow or stagnate, and we are firmly in the “grow” category. While federal and state governments influence our regional economy, the pressing question is how we, as a local community, facilitate investment while maintaining our quality of life and economic vibrancy.
National Trends: Interest Rates and Federal Funding
Nationally, high interest rates have made housing less affordable, slowing real estate sales and creating financial challenges for buyers and developers. Federal infrastructure investments in roads, bridges, beaches, ports, and airports, however, provide much-needed relief.
In 2024, we celebrated a $242 million federal grant, championed by Senator Thom Tillis, to replace the Cape Fear Memorial Bridge. Federal support also resolved longstanding sand infrastructure issues at Wrightsville Beach, thanks to Congressman David Rouzer. These successes illustrate the value of collaboration, and we look forward to seeing how the new administration and Congress will address taxes, Helene relief and other key issues in the coming year.
State Perspective: Building on Success
At the state level, North Carolina continues to lead as a business-friendly powerhouse. Ranked the #1 state for business in both 2022 and 2023, state leaders continue to focus on maintaining a pro-growth business climate, regulatory reform, workforce readiness, infrastructure investments, and economic development, especially at megasites.
In addition to lowering tax rates and increasing teacher pay, sustaining success requires continued investment in our exceptional university and community college systems. Fostering innovation and job creation—especially in high-growth sectors like technology and healthcare—will secure North Carolina’s competitive edge for decades to come.
Local Growth: Housing, Jobs, and Education
Regionally, Southeastern North Carolina is experiencing a sharp population increase, driving demand for housing, jobs, and infrastructure. This is a dramatic shift from the economic stagnation of 2007–2009, when the housing market collapse revealed how critical real estate, building, and development are to our local economy. Today, housing demand far outpaces supply, creating affordability challenges and highlighting the need for diverse housing options.
Growth has also increased demand on transportation networks, utilities, and schools. Local institutions like UNCW and Cape Fear Community College are preparing students for high-demand fields such as technology, healthcare, and skilled trades. Meanwhile, employers like Live Oak Bank, Corning, GE, and Novant Health are creating jobs, helping our region become a more dynamic and resilient economic hub.
Addressing Housing Affordability
This growth creates a recurring tension, often seen at local Planning Board meetings. Housing affordability is one of our region’s most pressing challenges. Employers need workforce housing, and residents need diverse options at all income levels. Yet, building more housing often requires developers to navigate public processes where existing residents feel empowered to try to veto projects.
Local governments can play a vital role in addressing this challenge by focusing on three key strategies:
- Investing in Infrastructure: Public investments in roads, schools, utilities, parks, and stormwater systems must keep pace with growth. Efficiently completing voter-approved bond projects and fast-tracking critical upgrades will enhance resilience and attract private investment.
- Encouraging Density, Height and Variety: Concentrating growth near existing infrastructure and commercial centers is more efficient than horizontal sprawl. This includes supporting a mix of housing types—apartments, townhomes, and single-family homes—close to jobs and amenities. Wilmington, for instance, must prioritize infill development and adaptive reuse of existing properties.
- Reducing Regulatory Burdens: Simplifying zoning and permitting processes can lower costs and create a predictable environment where developers feel confident building the infrastructure, housing, and commercial spaces our region needs to thrive.
Balancing Growth: Parks, Schools, and Green Space
As our region grows, the focus cannot be solely on housing—we need balance in recreational areas, schools, and commercial spaces. For instance, as utilities unlock opportunities in northeast New Hanover County, our community must also invest in parks, schools, green spaces, and water access. These public investments are critical to preserving our region’s natural beauty and quality of life.
The balance also extends to how we grow demographically. Myrtle Beach’s designation as the nation’s top retirement destination has brought economic benefits to nearby Brunswick County but also increased stress on infrastructure, especially healthcare. Thriving communities require a mix of ages, jobs, and opportunities. Expanding the workforce, attracting younger families, and creating high-quality jobs in Brunswick and Pender Counties will help diversify the economy and ensure long-term vitality.
Opportunities and Investments
Significant investments are already reshaping the region. Infrastructure upgrades at ILM, NC Ports, and along the 421 corridor, as well as downtown Wilmington’s transformative redevelopment, are driving growth. CFPUA’s wastewater plant upgrades and investments in northeast New Hanover will provide capacity for decades.
Regional transportation projects are easing congestion, improving connectivity, and creating new opportunities. Most importantly, the New Hanover Community Endowment offers an unprecedented opportunity for transformational investments in education, safety, equity, and community development.
Preparing for the Future
The challenges—housing affordability, infrastructure capacity, and wages—require collective action. By fostering collaboration, embracing housing diversity, and investing in infrastructure, jobs, and education, we can ensure Southeastern North Carolina not only balances its growth in 2025 but positions itself to thrive for generations to come.