Novant Health has announced a transformative workforce housing initiative on Hilton Head Island, addressing the urgent need for affordable housing for the area’s essential workers. The project reflects Novant Health’s unwavering commitment to community wellness and workforce support while tackling critical housing challenges that impact health care and service industries.
Targeted to begin construction in late 2025, with units available by 2027, the development will deliver thoughtfully designed workforce housing units for health care professionals, first responders, and other critical service industry workers. This timeline is made possible through local partnerships and innovative building approaches that ensure high quality and efficient delivery of energy efficient, climate resilient, and economically viable homes.
A widespread community-based survey will be used to better understand the needs of the potential residents, which will help shape the design of the buildings and amenities. This collaborative approach ensures that the project reflects the unique needs of Hilton Head Island’s workforce while fostering a campus-style environment that encourages connection and well-being.
The initiative aligns with Hilton Head Island’s Workforce Housing Framework, offering a meaningful solution to the island’s housing shortage while reinforcing Novant Health’s role as a leader in fostering sustainable, community-driven growth. The project team will work diligently with the town to ensure all zoning and permit requirements are completed.
“This project underscores Novant Health’s mission to support the people who make Hilton Head a thriving community,” said Joel Taylor, market president for Novant Health and a key advocate for the initiative. “Essential workers are the backbone of our community, and this development ensures they have access to stable, quality housing close to where they work and serve.”
Key features of the development include:
• Multiple buildings with a mix of one-bedroom, two-bedroom and three-bedroom apartments designed for individuals and families earning between 80% and 150% of the area median income (AMI).
• Strategic location in proximity to Hilton Head Medical Center, providing convenient access for health care and essential workers.
• Community-centered design, to include a dedicated community center and clubhouse and amenities that foster a sense of belonging.
• Workforce priority: Novant Health will reserve a minimum of 30% of the units within the development for its workforce and maintain a right of first refusal on all units to prioritize access for hospital staff.
• Strong local stewardship: Abode Development, a Hilton Head-based firm, serves as the developer of record, ensuring alignment with community needs and regulatory requirements.
• Energy efficiency: Buildings will be certified to the highest standard of energy efficiency, unique to the region and size of project.
Novant Health collaborated closely with the Coastal Community Development Corporation (CCDC) to ensure the project aligns with the island’s housing priorities. Alan Wolf, president of SERG Restaurant Group and board member at CCDC, emphasized the importance of partnerships in addressing workforce housing challenges. “This development isn’t just about housing – it’s about supporting the people who are the heart of this island’s community and economy,” Wolf said. “Together, we’re creating a future where Hilton Head works for everyone.”
“This project is deeply personal for us. We live here, we raise our children here, and we care for our parents here,” said Keith Kostrzewski, partner at Abode Development. “It’s more than just a development. It’s about creating meaningful opportunities for those who make Hilton Head thrive. Novant Health’s leadership has been exceptional in their commitment to this community, and we’re proud to collaborate with such a forward-thinking team to bring this vision to life.”
Building on years of local experience, Brian Quinn, partner at Abode Development, explained the firm’s journey to address workforce housing. “As a Hilton Head builder, I recognized the housing challenge years ago and have been working diligently to develop solutions,” he said. “We’ve created specific strategies for sustainable, energy-efficient housing that is of the highest quality and meets our local climate needs.”
Abode Development is committed to using South Carolina contractors and suppliers, Quinn said, which means the project’s development dollars will strengthen the state and local economy.
Another strategic partner, Vantem Global, has worked closely with Novant Health, Abode, and CCDC to help address the project goals with building technology and sustainable practices.
“We are proud to help deliver homes working families in the Hilton Head community will be able to afford,” said George Satt, EVP of business development for Vantem. “These homes will be not only be affordable and high-quality, but also extremely energy-efficient making the development a leader in environmental stewardship.”
Hilton Head Island faces a significant shortage of workforce housing, with more than 14,000 workers commuting daily to meet the island’s employment needs. Rising housing costs have placed increased pressure on local employers, particularly health care systems like Novant Health, which faces challenges recruiting and retaining essential workers such as nurses and medical staff. The lack of affordable housing is a known driver of workforce instability nationwide.
Novant Health’s acquisition of Hilton Head Hospital in early 2024 included nearly 10 acres of land dedicated to this initiative. This project directly addresses the housing needs outlined in the Hilton Head Workforce Housing Framework, ensuring that the region’s essential workers have access to stable housing that allows them to thrive personally and professionally.
While not a complete solution, this project represents significant progress in creating sustainable, attainable housing for essential workers.
