Home buyers are leaving trendy MS Coast cities and moving to rural Kiln. Here’s why.

As housing prices and occupancy rise across the Mississippi Coast, rural Kiln is becoming more appealing for renters and buyers because of its affordability.

In recent years, South Mississippi has generated an impressive amount of interest from potential renters and home buyers. And according to a rent.com study, interest in Mississippi has been highly concentrated in the Gulfport-Biloxi metro area. It took the top spot for prospective renters last quarter, and has been in the top five for all of 2022.

Back in August, occupancy on the Coast soared to 97.2%, leaving less than 3% of housing available. The increase in popularity has resulted in higher demand for property and is a contributing factor to rising prices. Rent in popular areas like Bay St. Louis, Biloxi, Gulfport, and Ocean Springs have gone up this year, with landlords in some areas increasing their rent costs by several hundred dollars a month.

Home buyers are looking above Interstate-10 on the Coast

Some people are making the choice to move away from booming cities below Interstate 10 and travel up north to Kiln, an unincorporated community in Hancock County. With a population of less than 2,500, the Kiln is smaller than many of the Coast’s more popular cities. So why is it a place that is appealing to renters and home buyers?

Danny Lee, who was a Realtor for 15 years in Hancock County and is now CEO for the Gulf Coast Association of Realtors, said there are several reasons why Kiln is gaining traction.

“After the onset of the COVID pandemic, the real estate market experienced a major boom,” Lee said. “Coastal towns like Bay St. Louis and Waveland quickly became hotspots for tourists and second home purchasers. The increase in demand quickly drove prices up and inventory down, so buyers (specifically those looking to purchase a primary residence as opposed to a second home) started looking elsewhere and the Kiln was a very near and available option.”

Lee told the Sun Herald that average sale prices in the 39556 zip code area – which houses the Kiln and Stennis Space Center – are around $50,000 cheaper than in nearby Bay St. Louis.

“The more affordable pricing is definitely a big attraction for buyers,” Lee said.

Kiln may appeal to residents because it offers a quieter alternative to city life while still being close to I-10. There’s easy access to Bay St. Louis, Gulfport, Slidell and New Orleans. Its rural location also offers residents access to more land, with the majority of properties sold as acreage instead of city lots.

“The Kiln is an unincorporated area of Hancock County, which means it has not been annexed as a city. By not being incorporated into a city, the taxes remain lower as an additional city tax is not charged. This is desirable to a lot of buyers who are trying to stick to a budget,” Lee said.

Flood zones & flood insurance

Unlike many areas on the Coast, the majority of the Kiln is in a non-flood zone and will not come with a premium price tag for flood insurance.

“Living along the Coast has many benefits, but one negative to many buyers is the risk of flooding,” Lee said. “The Kiln offers some of the highest elevations in Hancock County, so the majority of the area is a non-flood area. This means residents shouldn’t have to contend with flood waters and there are no height requirements for building. This makes the cost of building cheaper and flood insurance (if desired) is more affordable.”

There are, however, some areas of the Kiln prone to flooding — especially in areas near the Jourdan River.

According to MLS United data shared by Lee, in the past two years 16 new construction homes were sold in the 39556 zip code. This figure does not include homes that were built from the ground up from purchased vacant lots, the number of which is much higher.

This story was originally published December 19, 2022 at 7:00 AM.