Author: O.K. Hogan | REALTOR®/BROKER, CCIM, SFR

The North Carolina Coast has become a hot spot for real estate investors seeking high returns and long-term growth. With its beautiful beaches, vibrant communities, and strong rental demand, it’s no wonder that more investors are paying attention to this region.

The key to a successful investment is knowing where to buy. Some cities offer higher potential for short-term rental income, while others promise steady appreciation and year-round demand. 

In this guide, we’ll walk you through the top coastal cities on the North Carolina Coast that provide the best opportunities for property investors. Whether you’re looking for a vacation rental or a long-term investment, these cities have something for every strategy.

Why Invest in Coastal North Carolina?

1. Strong Tourism Industry

The North Carolina coast attracts millions of visitors yearly, creating a consistent demand for vacation rentals. Cities like Wilmington, Wrightsville Beach, and Carolina Beach are popular vacation destinations, making short-term rentals a lucrative option for investors.

2. Property Appreciation

Coastal properties in North Carolina have shown consistent value growth over the past decade. According to Zillow, home values in the state increased by 2% in 2025, with coastal areas outperforming inland markets.

3. Growing Short-Term Rental Market

Platforms like Airbnb and VRBO have made it easier for investors to capitalize on the short-term rental market. Coastal cities are ideal for these properties, offering high occupancy rates and attractive rental yields.

Top Coastal Cities in North Carolina for Buying Investment Properties

Here are the best cities for real estate investment on the North Carolina coast. Each city offers unique opportunities depending on your investment goals.

1. Wilmington, NC

Wilmington is a vibrant coastal city with a historic downtown, great restaurants, and proximity to beautiful beaches like Wrightsville Beach and Carolina Beach.

Why Invest:

• Strong rental demand from both tourists and permanent residents
• Diverse property options, from multi-family homes to luxury waterfront properties
• Consistent property appreciation

Investment Highlights:

• Average Home Price: $404,937 (Source: Wilmington, NC Housing Market: 2025 Home Prices & Trends)
• Best Strategy: Long-term rentals, short-term vacation rentals

2. Wrightsville Beach, NC

Known for its upscale homes and stunning beaches, Wrightsville Beach attracts affluent vacationers and offers some of the most desirable real estate on the NC coast.

Why Invest:

• High short-term rental income potential
• Strong demand for luxury beachfront properties
• Steady property appreciation over the years

Investment Highlights:

• Average Home Price: $2.3M (Source: Wrightsville Beach, NC 2025 Housing Market)
• Best Strategy: Luxury vacation rentals

3. Carolina Beach, NC

Carolina Beach is a family-friendly destination with a laid-back atmosphere and a growing real estate market.

Why Invest:

• Affordable entry point compared to nearby Wrightsville Beach
• Rising property values
• Strong demand for vacation rentals during the summer season

Investment Highlights:

• Average Home Price: $583,741 (Source: Carolina Beach, NC Housing Market)
• Best Strategy: Mid-range vacation rentals

4. Topsail Beach, NC

A quiet, laid-back beach town with long stretches of uncrowded beaches, Topsail Beach is perfect for investors seeking peace and long-term growth.

Why Invest:

• Affordable beachfront properties
• Lower competition compared to other coastal towns
• Growing demand for waterfront homes

Investment Highlights:

• Average Home Price: $1.2M (Source: Topsail Beach, NC 2025 Housing Market)
• Best Strategy: Long-term investments with strong appreciation potential

5. Morehead City, NC

Known as the gateway to the Crystal Coast, Morehead City has a thriving fishing and boating culture. Its strong sense of community and steady year-round demand make it a great option for investors.

Why Invest:

• Consistent year-round rental demand
• Ideal for both short-term and long-term rentals
• Affordable entry into coastal real estate

Investment Highlights:

• Average Home Price: $390,837 (Source: Morehead City, NC Housing Market: 2025 Home Prices & Trends)
• Best Strategy: Long-term rentals, waterfront properties

Key Factors to Consider When Buying Coastal Investment Properties

Investing in coastal real estate can be highly rewarding, but it also comes with unique challenges. Here are some key factors to keep in mind:

1. Insurance and Maintenance Costs

Properties near the coast require flood and hurricane insurance, which can be costly. Regular maintenance is also crucial to protect your investment from the salt air and extreme weather.

2. Seasonal Demand

If you’re investing in a short-term rental, be prepared for seasonal fluctuations. Coastal areas see high demand in summer but slower periods in the off-season.

3. Local Regulations

Some coastal cities have restrictions on short-term rentals. Research local ordinances to avoid surprises.

4. Property Management

Managing a coastal property from afar can be challenging. Hiring a local property management company can help ensure your investment runs smoothly.

Tips for Maximizing ROI on Your Investment

Want to make the most of your coastal investment property? Here are some strategies:

• Target High-Demand Areas: Focus on cities with strong tourism and rental demand.
• Upgrade for Modern Amenities: Simple upgrades like smart home features and high-speed Wi-Fi can boost rental income.
• Partner with Local Experts: Work with an experienced real estate team like Star Team Real Estate to find the best properties and avoid pitfalls.

Financing Your Coastal Property

Financing an investment property can be different from a primary residence. Here are some financing options:

• Traditional Mortgages: Ideal for long-term investors with good credit.
• Hard Money Loans: Great for short-term investors who want to close quickly.
• Private Investors: Partnering with others can help spread the risk and increase your purchasing power.

“Pro Tip: Work with lenders familiar with the coastal market to get the best terms and avoid delays.”

Frequently Asked Questions (FAQs)

What are the Top Cities in North Carolina for Real Estate Investment?

Wilmington, Wrightsville Beach, Carolina Beach, Topsail Beach, and Morehead City are the top cities for investment along the North Carolina coast. Each offers unique opportunities, from luxury vacation rentals to long-term residential properties, with high demand and strong appreciation potential.

How Much Do Investment Properties Cost on the NC Coast?

Investment property prices on the NC coast differ by city and market. Wilmington’s average home price is $404,937, while Wrightsville Beach averages $2.3 million. Carolina Beach is around $583,741, Topsail Beach is at $1.2 million, and Morehead City averages $390,837. Prices depend on location, property size, and condition.

Is it Better to Invest in Short-Term or Long-Term Rentals?

Both strategies have benefits. Short-term rentals offer higher returns during peak tourist seasons, while long-term rentals provide stable, year-round income with less management. Investors seeking passive income may prefer long-term rentals, while those focusing on higher ROI can opt for short-term vacation properties.

How Do I Finance an Investment Property?

Options include traditional mortgages, hard money loans, and private financing. For best results, work with a lender experienced in coastal properties to navigate unique requirements like flood insurance. Star Team Real Estate can recommend trusted financing partners to help secure the right loan.

What are the Risks of Investing in Coastal Real Estate?

Risks include higher insurance costs, property damage from hurricanes, and seasonal fluctuations in rental demand. Local regulations on short-term rentals can also impact profitability. Mitigate risks by purchasing in established markets and using experienced property management services to protect your investment.

What Insurance Do I Need for Coastal Properties?

Coastal properties require homeowners insurance, flood insurance, and hurricane coverage. These policies protect against storm damage, flooding, and high winds. Work with an experienced insurance agent to ensure comprehensive coverage that meets both state regulations and mortgage lender requirements.

How Do I Find Off-Market Properties in NC?

Off-market properties can be found through local real estate networks, experienced agents, or direct connections with property owners. Star Team Real Estate specializes in finding off-market investment opportunities along the NC Coast, helping clients access properties not listed publicly.

Can I Manage a Property from Out of State?

Yes, but it’s more efficient to hire a local property management company for tasks like maintenance, tenant communication, and guest services. This ensures your property is well-maintained and profitable, especially for short-term vacation rentals where quick response times are crucial.

What are the Best Neighborhoods for Vacation Rentals?

In Wilmington, the Downtown Historic District, Wrightsville Beach, and Carolina Heights are popular for vacation rentals. These neighborhoods offer proximity to attractions, restaurants, and beaches, making them highly sought after by tourists. Each provides excellent short-term rental income potential and strong demand.

How Can Star Team Real Estate Help Me Find the Right Property?

With over 20 years of experience, Star Team Real Estate offers deep knowledge of the NC coastal market, personalized service, and access to off-market opportunities. Our team will guide you from property search to closing, ensuring a smooth and successful investment experience.

Conclusion

The North Carolina Coast offers incredible opportunities for Real Estate Investors. Whether you’re looking for a vacation rental or a long-term income property, the cities listed here provide some of the best prospects for growth and high returns.

Partner with Star Team Real Estate to find the perfect investment property that fits your goals. With over 20 years of experience and unmatched knowledge of the local market, we’re here to help you in every step.

Call us at 252-422-2205 today to start your investment journey!