Hilton Head, October 3, 2025
News Summary
Hilton Head Island’s housing market is facing a significant crisis as home prices soar, making affordability a distant dream for many residents. The average cost of a standard home has jumped from $159,000 in 2014 to around $440,000, drastically affecting first-time buyers. With fewer than 2,500 affordable housing units available, town leaders are now focusing on solutions such as developing workforce housing and regulating short-term rentals to address this pressing issue.
Hilton Head Island – Home prices on Hilton Head Island have skyrocketed, pushing affordability out of reach for many residents. The average cost for a standard home has surged from $159,000 in 2014 to approximately $440,000 today, significantly impacting the local housing market and making it increasingly difficult for first-time homebuyers to enter the market. Starter homes, which are now nearing $300,000, further illustrate the dwindling options available for those looking to purchase their first home.
The housing market on Hilton Head Island has become sluggish, even during traditionally busy seasons. Analysis by Redfin Real Estate revealed that $500,000 no longer stretches as far as it did in the past. Homes around this price point, once indicative of high earners, are becoming more common. Listings at or near this price include:
- 63 Sago Palm Dr, Bluffton, SC: 5 bedrooms, 3 bathrooms, 3,440 sq ft, priced at $499,900.
- 36 Isle Of Palms E, Bluffton, SC: 5 bedrooms, 3 bathrooms, 2,880 sq ft, priced at $499,900.
- 1109 Salty Hammock Ct, Beaufort, SC: 5 bedrooms, 3 bathrooms, 2,733 sq ft, priced at $499,440.
- 9767 Tarboro Rd, Ridgeland, SC: 4 bedrooms, 3 bathrooms, 1,967 sq ft, priced at $500,000.
- Listings on Hilton Head Island include:
- 19 Lemoyne Ave: 2 bedrooms, 2.5 bathrooms, 1,051 sq ft, priced at $499,500.
- 20 Queens Folly Rd: 1 bedroom, 1.5 bathrooms, 902 sq ft, priced at $500,000.
- 43 S Forest Beach Dr: 1 bedroom, 1 bathroom, 538 sq ft, priced at $499,000.
The median price of a single-family home on Hilton Head Island has jumped from $553,037 in 2020 to over $1.01 million today, demonstrating an 82% increase. Over the same period, the median price of a condo has increased by 72%. Despite there being a total of 34,665 housing units on the island, fewer than 2,500 are considered affordable.
Concerns over housing shortages have become increasingly prominent among town leaders. They are focused on addressing the lack of workforce housing needed for employees earning above subsidized housing thresholds. Approximately 1 in 5 housing units on Hilton Head are short-term rentals, which total around 7,000. Since 2002, the number of residents living and working on Hilton Head has decreased by 34%. Currently, nearly 14,800 individuals commute to the island daily, while about 6,400 live on the island but commute off.
Housing that is deemed affordable should allow residents earning between 60-120% of the area median income to spend no more than 30% of their income on housing. The Hilton Head area median income for a family of four ranges from $66,120 to $135,000. In response, the town has proposed incentives for developers to construct workforce housing communities and emphasized the necessity for regulations concerning short-term rentals to help mitigate the housing crisis.
With significant public discussion surrounding growth and development, several residents have raised concerns regarding the impact of short-term rentals on neighborhoods and the use of public funds for housing projects amidst increasing tourism. Despite soaring costs and rising insurance rates, Hilton Head Island continues to experience new development along with resale homes. Interestingly, there was a reported 14% increase in home closings on Hilton Head Island during a generally flat market.
Overview of Housing Crisis on Hilton Head Island
- Average standard home price: $440,000
- Starter home price nearing: $300,000
- Median single-family home price increase since 2020: 82%
- Affordable housing units available: less than 2,500
- Short-term rentals: Approximately 7,000
Potential Solutions and Initiatives
The Hilton Head town leadership is looking to regulate short-term rentals and incentivize the construction of workforce housing. This aims to create affordable options for individuals within the local workforce while addressing the concerns of long-term residents regarding growth, development, and community stability.
Conclusion
The housing market on Hilton Head Island poses significant challenges for both current residents and prospective homebuyers, establishing a pressing need for sustainable solutions to foster affordability in the community.
FAQ
What is the average cost of a standard home on Hilton Head Island?
The average standard home now sells for $440,000.
What are the current prices for starter homes on Hilton Head Island?
Starter homes are nearing $300,000.
How much has the median price of a single-family home increased since 2020?
The median price of a single-family home on Hilton Head jumped from $553,037 in 2020 to over $1.01 million today, an 82% increase.
How many affordable housing units are available on Hilton Head Island?
There are less than 2,500 housing units considered “affordable.”
How has the number of residents living and working on Hilton Head changed?
The number of residents living and working on Hilton Head has decreased by 34% since 2002.
Key Features
| Feature | Current Status |
|---|---|
| Average Home Price | $440,000 |
| Starter Home Average Price | Nearing $300,000 |
| Single-Family Home Median Price Increase | 82% since 2020 |
| Affordable Housing Units | Less than 2,500 |
| Short-Term Rentals | About 7,000 |
Deeper Dive: News & Info About This Topic
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Additional Resources
- Island Packet: Hilton Head Island Housing Market
- Resi Club Analytics: Zillow 2025 Housing Market Forecast
- AOL: Most Expensive Homes Sold in Hilton Head
- WSAV: Housing Market Stalls Nationwide but Beaufort County Shows Growth
- The State: South Carolina Housing Market Trends
- Wikipedia: Housing Market
- Google Search: Hilton Head Island Housing Market
- Google Scholar: Hilton Head Island Real Estate
- Encyclopedia Britannica: Housing
- Google News: Hilton Head Island Real Estate
Author: STAFF HERE BEAUFORT
The HERE Beaufort Staff Writers are a collaborative team of journalists, editors, and local contributors passionate about delivering accurate, timely information to the Beaufort community. As part of the HEREcity.com Network, which powers over 100 U.S. city sites including HEREcolumbia.com, our staff draws on collective experience in South Carolina journalism to cover everything from business sales and real estate developments to dining deals and community initiatives. Our Expertise and Background: Local Roots in Beaufort : Our team includes lifelong Beaufort residents and SC natives with deep knowledge of the area’s history, economy, and culture. We’ve covered key events like the recent sale of the historic Crofts Block Building, Beaufort’s equestrian heritage, and growth in local tech and education sectors (e.g., BeaufortTechnical College programs). Collective Experience: With over 50 combined years in journalism, our staff has backgrounds in print, digital media, and community reporting. We prioritize fact-based stories, drawing from sources like the Beaufort Chamber of Commerce, city government records, and on-the-ground interviews. Commitment to Quality: Every article is a group effort, involving research, editing, and verification to ensure reliability. We adhere to journalistic standards, citing credible sources and updating content as new details emerge.
