For homeowners in New Hanover, Pender, and Brunswick counties, the late 2025 housing market presents a unique dilemma. You love your location—maybe it’s the school district in Hampstead or the walkability to downtown Wilmington—but the house itself feels small, dated, or tired.

Do you dig in and renovate, or pack up and move?

In the past, the answer was often "move." But with many homeowners locked into sub-4% mortgage rates and inventory still stabilizing, the math has changed. Here is how to calculate the real return on investment (ROI) for both paths in our current coastal market.

1. The "Cost to Go": It’s More Than Just the Price Tag

Moving isn't just about swapping one mortgage for another. In 2025, the "friction costs" of selling and buying in North Carolina have added up.

The "Golden Handcuffs" of Interest Rates: If your current mortgage rate is 3.5% and you trade up to a new home at today's rate (hovering around 6.5–7%), your buying power shrinks drastically. A $2,500 monthly principal/interest payment that bought you $550k in 2021 might only buy you $380k today.

The Transaction Tax: Between agent commissions (~5-6%), NC excise tax ($1 per $500 of value), and closing costs, selling a $600,000 home costs roughly $35,000–$45,000 in equity just to exit.

Physical Moving Costs: Local moving labor in Wilmington has stabilized but remains pricey. Expect to pay $1,500–$3,500 for a full-service local move of a 3-4 bedroom home.

2. The "Cost to Stay": Renovation ROI Has Flipped

For 2025, the "Cost vs. Value" data for the South Atlantic region tells a surprising story. The projects with the highest ROI aren't the luxury kitchens; they are the ones that protect the home.

Exterior is King: While a major kitchen remodel might only recoup ~50% of its cost at resale, exterior upgrades like fiber-cement siding or stone veneer are seeing returns of over 100%. Why? Because in a coastal market, buyers pay a premium for low maintenance.

The "Free Money" Factor: If your renovation involves a new roof, you might be leaving money on the table if you don't use the state grants. As of late 2025, the Strengthen Your Coastal Roof program is still offering grants of up to $6,000 (Mainland) or $10,000 (Barrier Islands) for qualified policyholders who install a FORTIFIED Roof™.

Pro Tip: This upgrade doesn't just pay for itself in resale value; it lowers your wind insurance premium immediately.

3. Financing the "Stay": HELOC vs. Cash

If you decide to renovate, how you pay for it matters.

HELOCs in 2025: Home Equity Line of Credit rates in NC are currently averaging 7.8%–8.4%. While higher than your primary mortgage, this is often cheaper than refinancing your entire home to pull cash out.

The "Cash-Out" Math: If you have substantial equity, a HELOC allows you to keep your primary low-rate mortgage intact while borrowing only what you need for the renovation.

4. The "Hidden" Cost: Time and Permits

Renovating in Wilmington or unincorporated New Hanover County requires patience.

Permit Reality: While simple trade permits are turning around in ~72 hours, complex additions involving zoning reviews can take weeks.

The "Live-In" Tax: Don't underestimate the mental cost of living in a construction zone. If you are adding a second story or gutting a kitchen, factor in the cost of a short-term rental (or a lot of takeout food) for 3-4 months.

The Verdict

RELOCATE IF: You need a different location (school district, flood zone change) or if the cost of the renovation exceeds 25% of your home's current value. Over-improving for your neighborhood is a risk that is hard to recover from.

RENOVATE IF: You love your lot, your current mortgage rate is below 5%, and your planned upgrades focus on square footage (adding a FROG or sunroom) or resiliency (roof, windows, siding).

Making the right call requires looking at more than just contractor quotes. You need to know what your home is worth now versus what it will be worth after the dust settles.

At Aspyre Realty Group, we can run a "Future Value Analysis" for you. We will look at your renovation plans and tell you exactly what the market is paying for those specific upgrades right now, so you can decide if the investment is worth the sawdust.