Hilton Head Island, October 3, 2025
News Summary
Hilton Head Island is grappling with a significant workforce housing crisis, as the median home price has surged from $553,037 to over $1.01 million. With only 2,500 out of 34,665 housing units classified as affordable, many residents struggle to find attainable homeownership options. Efforts are underway by local officials to create sustainable solutions and address the displacement of middle-income households caused by rising prices and short-term rentals. The growing workforce commuting into the island adds to the urgency of this housing dilemma.
Hilton Head Island Faces Workforce Housing Crisis as Home Prices Soar
Hilton Head Island is experiencing a severe workforce housing crisis as home prices continue to skyrocket, making homeownership unattainable for many potential buyers. In recent years, the median price of a single-family home on the island has increased dramatically from $553,037 to over $1.01 million, marking an 82% surge. This sharp rise reflects the overall trend in the real estate market, where many home prices across the United States, compared to 2014 figures, have also seen substantial increases.
Back in 2014, the median U.S. home sold for $159,000, with starter homes averaging around $101,000. Fast forward to today, a standard home now averages $440,000, while starter homes are nearing $300,000. The sluggish housing market has made buying homes particularly challenging, especially during traditionally busy seasons like spring and summer, when lower activity levels have been observed.
The current listings in Hilton Head Island highlight the crisis, with many homes near the $500,000 mark. Among these listings are:
- 63 Sago Palm Dr, Bluffton, SC: $499,900, 5 bedrooms, 3 bathrooms, 3,440 sq. ft.
- 36 Isle Of Palms E, Bluffton, SC: $499,900, 5 bedrooms, 3 bathrooms, 2,880 sq. ft.
- 1109 Salty Hammock Ct, Beaufort, SC: $499,440, 5 bedrooms, 3 bathrooms, 2,733 sq. ft.
- 9767 Tarboro Rd, Ridgeland, SC: $500,000, 4 bedrooms, 3 bathrooms, 1,967 sq. ft.
- 19 Lemoyne Ave, Hilton Head Island: $499,500, 2 bedrooms, 2.5 bathrooms, 1,051 sq. ft.
Despite these listings, the reality for many residents is grim. Of the total 34,665 housing units on the island, only 2,500 are classified as “affordable.” Workforce housing, primarily defined for individuals earning between 60% to 120% of the area median income, has become increasingly important. For families of four, this income range is approximately between $66,120 and $135,000, which means that they can afford housing without exceeding 30% of their income.
To address this pressing issue, the town of Hilton Head is seeking solutions through incentives for private developers and forming partnerships for new community developments. Approximately 14,000 workers commute to the island daily, with around 4,400 traveling 50 miles or more to reach their jobs. This has placed additional strain on the housing market, underscoring the urgent need for viable housing options for workforce members.
A recent housing displacement mitigation plan was approved by a narrow 4-3 vote after nearly two years of debates, aiming to enhance communication between nonprofits and the town on housing displacement events. This plan anticipates that an additional 200 housing units will be necessary each year over the next decade to effectively address the workforce housing shortage.
One factor contributing to the housing dilemma is the prevalence of short-term rentals, with one in five housing units on Hilton Head rented for short-term stays. This trend exacerbates the already tight housing market and complicates efforts to ensure housing availability for residents. As the town grapples with growing income disparities, there are concerns that middle-income households might be displaced, further inflating housing costs on the island.
Key Statistics
- Increase in median home price from $553,037 to over $1.01 million (82% increase) in five years.
- Median price of a condo rose by 72% during the same period.
- Only 2,500 affordable housing units out of 34,665 total units on Hilton Head Island.
- Income range for workforce housing defined as $66,120 to $135,000 for families of four.
- Approximate commuting workforce of 14,000 daily, with 4,400 traveling 50 miles or more.
Conclusion
The housing crisis on Hilton Head Island represents a complex challenge that necessitates collaborative efforts between government entities, developers, and community organizations to create sustainable solutions for current and future residents. As housing prices continue to rise, the path towards resolution will become increasingly urgent.
Frequently Asked Questions
What is the current median home price on Hilton Head Island?
The median price of a single-family home on Hilton Head jumped from $553,037 to over $1.01 million (an 82% increase).
How many affordable housing units are available on the island?
Only 2,500 out of 34,665 housing units on the island are classified as “affordable.”
What income range qualifies for workforce housing?
Workforce housing is primarily defined for individuals earning between 60% to 120% of the area median income. For families of four, this income range is between $66,120 and $135,000.
What is the housing displacement mitigation plan?
A recent housing displacement mitigation plan is designed to bolster communication between nonprofits and the town regarding housing displacement events.
What is the impact of short-term rentals on the housing market?
Discussion about short-term rentals and their impact on available housing units has been highlighted, as one in five housing units on Hilton Head are rented short-term, adding pressure to the housing market.
Key Features Chart
| Feature | Details |
|---|---|
| 2023 Median Home Price | Over $1.01 million |
| Price Increase (Last 5 Years) | 82% |
| Affordable Housing Units | 2,500 out of 34,665 |
| Workforce Income Range (Family of Four) | $66,120 – $135,000 |
| Daily Commuters | 14,000 workers |
| Short-term Rentals Impact | 1 in 5 housing units |
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Additional Resources
- AOL News
- Wikipedia: Hilton Head Island
- Island Packet
- Google Search: Hilton Head Island housing crisis
- Post and Courier
Author: STAFF HERE HILTON HEAD
The HILTON HEAD STAFF WRITER represents the experienced team at HEREHiltonHead.com, your go-to source for actionable local news and information in Hilton Head Island, Beaufort County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the RBC Heritage golf tournament, Hilton Head Island Wine & Food Festival, and the Gullah Celebration. Our coverage extends to key organizations like the Hilton Head Island-Bluffton Chamber of Commerce and Community Foundation of the Lowcountry, plus leading businesses in tourism and hospitality that power the local economy such as Sea Pines Resort and Sonesta Resort Hilton Head Island. As part of the broader HERE network, including HEREAiken.com, HEREBeaufort.com, HEREChapin.com, HERECharleston.com, HEREClinton.com, HEREColumbia.com, HEREGeorgetown.com, HEREGreenwood.com, HEREGreenville.com, HEREHiltonHead.com, HEREIrmo.com, HEREMyrtleBeach.com, HERENewberry.com, HERERockHill.com, and HERESpartanburg.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.
