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Small Lot Options in Durham - Information and Inventory

Durham, NC is a great place to live and it’s getting more popular by the day! Recently named (with Raleigh) as the 6th best place to live in the U.S. (by U.S. News and World Report), people are flocking to Durham for jobs, a great foodie scene, arts, and culture. Durham is developing a reputation as a tech hub, and attracting folks from the west and northwest who appreciate the lower cost of living - and the weather!

But this influx of people - Durham is currently a mid-size city of around 270,000 - comes with a housing crunch of both availability and affordability. In 2019, the city of Durham adopted an Expanded Housing Choice (EHC) project to deal with the increasing population growth, the preference for downtown living, and the limited number of available properties. 

This kind of changing thinking in zoning options is meant to solve the issue of Missing Middle Housing. The intent is to bridge the gap between available housing and shifting demographics along with a growing demand for walkability to entertainment, dining, and recreation. So the Missing Middle represents both the lack of high-density diverse housing options not traditionally available in cities and also missing middle options between detached single-family homes and multi-level apartment buildings. 

So for example, instead of having zoning rules that restrict development to single-family homes, the rules have been relaxed in many neighborhoods to allow both multifamily options and smaller-scale housing. Higher-density housing yields much needed options for more people to live downtown. 

One that we’re excited about in Durham is the “small lot option,” which allows homes to be built on lots as small as 2000 square feet. You’ve probably seen homes in large cities like New York and Seattle build homes on small lots - some four or five stories tall. So small lots do not mean tiny homes! 

Photo courtesy of, and plans available from, www.distinctive-architecture.com 

In Durham, the current guidelines say that a dwelling on a small lot can be no more than 1200 square feet. Setbacks are also adjusted for the small lot option, so a neighborhood that has had 15 feet side setbacks can be built with as few as 5-6 feet setbacks instead. 

So who might be interested in small lots? 

You really want to live within an easy walk to downtown Durham

Smaller lot homes are less expensive than the traditional homes currently in the walkable areas of downtown Durham. Yes, the downtown areas are still going to be more expensive than the farther out areas, but if this is your dream, giving up a larger footprint in both the lot and the home might be your best path. 

For singles, new families, and empty-nesters, these size homes might be ideal to live near their preferred location. In addition to more affordability, some people choose small lot living to reduce their ecological footprint. 

And it should be noted that although downtown Durham is getting a lot of interest for small lot homes, the same options are available in the suburban areas, too. 

You see an investment opportunity 

On a smaller lot, you have two choices for treating the property as an investment. Build a duplex and you can live on one side, rent out the other. You could also rent out both sides while you live somewhere else. 

Photo courtesy of Sightline.com

Or you could build a 1200-square foot home to live in and then an Accessible Dwelling Unit (ADU) on the property to rent or Airbnb. Current Durham guidelines provide for an ADU of 800 sq feet on a small lot in addition to your primary residence. 

You have a large lot and would like to monetize some of the space

If you’re happy in your current home but would like to generate some additional income, you can carve out a small lot from your overall property and build a rental property or even an Airbnb space. 

If you’re ready to downsize, consider building a smaller house on the small lot and then rent out your current home.

You recognize that “small” doesn’t mean claustrophobic

The truth is, with the right architect, the right plan, you can fit a lot of living into a small space! If you’re thinking about buying a small lot and building a home, we recommend that you look for an architect that specializes in smaller houses on narrower lots. You want to find someone that can maximize the space you have creatively and effectively. 

Some basic design principles that help maximize the space are open floor plans, vaulted ceilings, upper story light, and minimalist design elements that discourage clutter. Creative use of outdoor space is also a hallmark of good design for these projects. 

We expect to see more and more of this new building trend in Durham and beyond. It may be that restrictions will be further relaxed; in other cities, for example, we often see fewer restrictions on the size of homes that can be built on these small lots. We will certainly keep you updated. 

Small Lots for Sale in Durham

1314 Steadman Drive, Durham image
1314 Steadman Drive, Durham $45,000 ▼

Nice flat homesite ready for your new home. The MLS system has it as 1314 Stedman Drive the property tax Office has it listed as 1314 Steadman St. There is water and sew...

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  • 2485598 MLS
  • ACTIVE Status
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1202 Granby Street, Durham image
1202 Granby Street, Durham $75,000 ▼

Nice buildable corner lot on 1202 Granby Street between N. Alston Ave. and Drew Street. The .14 acres includes some hardwood trees for a nice setting. Great location fo...

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  • 2485763 MLS
  • ACTIVE Status
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2210A Edwin Avenue, Durham image
2210A Edwin Avenue, Durham $120,000

One of Four vacant lots for sale, nestled in a great neighborhood with lots of recent renovations, flips and new construction on the same street. To be sold individually ...

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  • 2494660 MLS
  • ACTIVE Status
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2210B Edwin Avenue, Durham image
2210B Edwin Avenue, Durham $120,000

One of Four vacant lots for sale, nestled in a great neighborhood with lots of recent renovations, flips and new construction on the same street. To be sold individually ...

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  • 2494667 MLS
  • ACTIVE Status
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2212A Edwin Avenue, Durham image
2212A Edwin Avenue, Durham $120,000

One of Four vacant lots for sale, nestled in a great neighborhood with lots of recent renovations, flips and new construction on the same street. To be sold individually ...

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  • 2494675 MLS
  • ACTIVE Status
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2212B Edwin Avenue, Durham image
2212B Edwin Avenue, Durham $120,000

One of Four vacant lots for sale, nestled in a great neighborhood with lots of recent renovations, flips and new construction on the same street. To be sold individually ...

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  • 2494679 MLS
  • ACTIVE Status
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1112 Holloway Street, Durham image
1112 Holloway Street, Durham $159,750 ▼

A cleared, level, and pretty lot at a very convenient downtown Durham location. The size of the lot is .15 of an acre. The City of Durham has it zoned for RU-5(2) zonin...

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  • 2481362 MLS
  • ACTIVE Status
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1204 S Roxboro Street, Durham image
1204 S Roxboro Street, Durham $165,000 ▼

Location, Location, Location! Rare to find, cleared corner lot in the heart of Downtown Durham’s Southside neighborhood. Many options with this corner lot. Lot is zoned f...

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  • 2482731 MLS
  • ACTIVE Status
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207 Lodge Street, Durham image
207 Lodge Street, Durham $170,500 ▲

Location, Location, Location! Rare to find, cleared corner lot in the heart of Downtown Durham’s Southside neighborhood. Minutes to Durham Bull Athletic Park. Many option...

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  • 2483301 MLS
  • ACTIVE Status
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1101-1103 Elmira Avenue, Durham image
1101-1103 Elmira Avenue, Durham $449,500 ▼

5 lots in the City of Durham in a growing area! This is an exempt subdivision plat with small lot option and a great opportunity to take advantage of the trend to smaller...

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  • 2479023 MLS
  • ACTIVE Status
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Listings provided courtesy of Triangle MLS, Inc. of NC, Internet Data Exchange Database. Information deemed reliable but not guaranteed. © 2023 Triangle MLS, Inc. of North Carolina. Data last updated .

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