8 Things You Need To Know About Real Estate and Housing Affordability in Winston-Salem, N.C.

Last updated: April 10, 2024

Winston-Salem, riding a surge of popularity driven by its high quality of life and affordable prices, ranked as one of the hottest housing markets in the U.S., according to Bankrate. We’ve provided real estate charts and data on eight things you need to know about the housing market and affordability in the Winston-Salem area.

Data is interesting to look at and analyze, but it’s nothing to live and die by. The best time for YOU to buy or sell depends on various personal and financial factors. If you have questions about real estate in the Winston-Salem area, don’t hesitate to contact us.

The home-selling craze is cooling.

The trend in pending home sales, which predict future existing home sales, continues to slow. That’s not exciting news for home sellers, but it could be promising for buyers re-entering the market.

Real estate continues to be a profitable investment. 

Good news for both buyers and sellers: While increasing home sales prices have leveled off significantly, real estate experts foresee median home prices continuing to rise steadily in the Winston-Salem area. 

Winston-Salem-area homeowners are still winning.

The percentage of Winston-Salem and Forsyth County homeowners who own equity in their residences is greater than that of the state and nation. 

According to the national real-estate research firm Attom Data Solutions, Forsyth County homeowners with equity in their residences have declined from around 50% to 40% over the past year. The Winston-Salem Journal published a recent article stating, “There is, however, more than just a silver lining to what on the surface may appear to be a negative housing indicator. That’s because, even with still-high mortgage rates, more homeowners in the five-county metro of Davidson, Davie, Forsyth, Stokes, and Yadkin were able to secure a mortgage loan. The decrease also signifies more Winston-Salem homeowners paid off their homes over the past year.”

There’s a reason people continue to live in and relocate to Winston-Salem.

The U.S. economy pushes people toward more affordable places with high livability scores. We compared housing and economic data for the Winston-Salem Area to the nation to see why people continue to stay and relocate to our area. Click here for the full report from the National Association of REALTORS®.

Employment is growing in Winston-Salem, but is there enough new construction to keep up with the growth? 

According to the U.S. Bureau of Labor Statistics, new jobs in Winston-Salem increased by 7,200 in one year (July 2022-July 2023). The Housing Shortage Tracker compares the number of new single-family building permits to new jobs in 174 metropolitan areas. Based on the historical average, most areas need one new permit for every two new jobs. Comparing the number of permits issued in the same period as the job growth, Winston-Salem has a sufficient supply. 

Winston-Salem has better housing affordability than North Carolina. 

Source: Realtors Affordability Distribution Curve & Score

But affordability can always be better. 

According to a comprehensive 2018 study to better understand the state of housing affordability in our community, fewer than half of all rental units in Winston-Salem are affordable to families earning 80% of the area median income or less, resulting in a shortage of more than 16,000 affordable homes.

How the City of Winston-Salem is improving housing affordability:

1. In 2019, the Department applied for and received $225,000 in technical assistance from the Grounded Solutions Network to support the development and execution of a more equitable housing policy for our community. This new approach, called “ForEveryoneHome,” brings together government and civic leaders working toward preserving housing affordability and cultural heritage in communities of color. 
2. Target investments in affordable housing to maximize the use of available land, allowing the City to strategically direct limited resources to vacant, underutilized parcels of land to construct new housing stock.
3. Continue active community engagement efforts to create a sustainable, purposeful action plan for collaboratively increasing the quality and quantity of affordable housing in Winston-Salem.
4. The Housing and Community Services Division administers over $25 million in active investments in 30 multifamily residential properties in Winston-Salem. Each funding agreement between the City and an individual property, or group of properties, provides income limits for residents in specific numbers of units. In some cases, these agreements specifically limit the maximum rent allowable.
5. The City of Winston-Salem Affordable Housing Coalition was formed in 2019 to articulate strategies that:
   1. Improve the quality and increase the quantity of affordable housing.
   2. Equip people to afford better and access housing.
   3. Assist in the development of additional strategies to support affordable homeownership opportunities.
   4. Help to identify and secure sustainable, long-term resources for affordable housing.
6. On April 23, 2020, the U.S. Department of Housing and Urban Development (HUD) awarded $30 million to the City of Winston-Salem and HAWS as part of the Choice Neighborhoods page. These funds will transform the 244-unit Cleveland Avenue Homes public housing development into 406 units of mixed-income housing between two locations in the neighborhood. This project will be the latest in a series of significant investments by the City and HAWS to expand affordable housing opportunities to our community’s low- and very low-income residents. 
7. The Winston-Salem City Council recently approved to begin work on Phase II of the Ridgewood Development, a new community of single-family homes in the Southeast Ward. Additional projects, including multifamily (apartment) developments, are under consideration. 

Local Resource: First-Time Homebuyer Financial Support and Counseling

The City is partnered with Financial Pathways of the Piedmont’s Center for Homeownership to provide homebuyer counseling services and mortgage application support to Winston-Salem residents. These programs include credit counseling, personal savings plans, and setting achievable, measurable financial goals.