In Holly Springs, a subdivision has to win its share of the town's wastewater capacity before its engineering plans are even accepted. The town's Water Resource Management Policy says Holly Springs will not accept civil construction drawings or approve water and sewer extension permits until the project's utility allocation has been approved. Any project that needs to connect to town sewer files a Utility Allocation Request, and Town Council approves it as a separate decision from the zoning case.

That one rule explains a lot about the Holly Springs market for a buyer comparing south Wake towns. New homes arrive in measured portions tied to a fixed yearly release of capacity, not whenever a builder is ready. Because of that, the next year of new-home supply depends more on the town's July allocation release and on council allocation votes than on any monthly median.

The Gallons Get Approved Before the Construction Plans

The policy took effect July 1, 2023, and it covers any new project, or any change to an existing project's utility demand, that needs a council decision or a staff approval. The request goes in with the project's first Unified Development Ordinance application and moves through review alongside it. In order, a new detached subdivision goes through these steps:

1. Rezoning or development application is filed, with the utility allocation request attached.
2. Town Council decides on the rezoning and, separately, on the allocation.
3. Only then can civil construction drawings be accepted and utility extension permits approved.
4. If the year's available flow has already been claimed, a project that otherwise qualifies goes on a waiting list for the next release, in the order the Director approved it.
5. Any detached project larger than 75 lots has to be phased, and no more than 75 lots can be considered for allocation in a single phase in any one fiscal year.

That fifth step sets the pace. A 300-lot community cannot get all of its sewer capacity in one year under this policy. It moves forward in sections. A phase within 10% of the 75-lot limit can get an exception from the Director based on design constraints or build-out.

The town's housing staff have put the overall timing in numbers. The draft Affordable Housing Action Plan describes average development review of about 18 months and proposes cutting that to 12 months for qualifying projects.

How the July Release Gets Divided

The town releases available capacity once per fiscal year, in the first week of July. Before any subdivision gets a share, the release is split into buckets:

The residential bucket is split again. In a given year, no more than 20% of the available residential flow can go to attached homes or apartment developments. Leftover residential flow at the end of the fiscal year rolls into the next year.

The policy also has an accounting rule. Allocated flow is not treated as actual flow on the system until a certificate of occupancy is issued or a water meter is installed. So capacity is committed to a project on paper years before anyone lives in those homes, and every approved but unbuilt subdivision counts against what's left.

None of the reporting we reviewed gave the amount released in July 2026 for fiscal year 2026–27 or the size of the waiting list. Anyone who claims to know how many lots Holly Springs will approve this year is estimating.

August's Sales Count Reflects That Limit

The most recent town-level sales figures come from deed records, not MLS data. In August 2026, according to Wake County Register of Deeds data summarized by Holly Springs Update, the three south Wake towns looked like this:

Holly Springs made up about one in ten of the 259 sales across the three towns that month, yet it had the highest median of the three. A 26-sale month is a small sample, and one month of deed data can't support a trend or a cause. What the figures do show is a market with a thin flow of closings, which fits a town where new-home supply is released in phases. The draft affordability plan gives a longer view: Holly Springs sale prices are up 59% since 2019, and the 2025 single-family median was $565,000. The plan's 2025 median and August's $744,000 come from different data sources and periods, so the gap between them isn't a valid comparison.

For a buyer, a limited new-home pipeline means resale listings face fewer new-build alternatives here than in a town where large subdivisions can open in one go. It also means a new community you tour may be selling a phase that already has its allocation while later phases are still waiting on a future July release.

The Council Votes That Change Supply

Changes in supply show up as council agenda items well before they appear in the sales data. Three recent items show how that works:

• 2420 Avent Ferry Road. On Aug. 18, 2026, Town Council unanimously deferred a rezoning of about 32 acres that would have allowed 53 single-family homes and a commercial building of 5,000 to 16,000 square feet. Council did not take up the project's water and sewer allocation request, and Holly Springs Update reported that no return date was set. The project's Avent Ferry widening, Buckhorn Duncan Road extension and multi-use path are proposals tied to the plan. None of them has been built.
• Mira Ridge. Council was scheduled to consider utility allocation for the proposed 42-lot Mira Ridge subdivision at its Feb. 17, 2026 meeting, according to the agenda preview. Here the allocation was its own agenda item, separate from the land-use decision.
• The Affordable Housing Action Plan. The 22-step plan went to a public hearing on Sept. 15, was sent to the Planning Board on Sept. 22, and is scheduled to return to council on Oct. 20 for final approval, per Indy Week. As of Oct. 8 it had not been adopted.

The action plan relies on incentives, not requirements. The town attorney told council that municipalities cannot base zoning decisions on anticipated home sale prices. The plan instead proposes an incentive zoning policy, a faster approval track for qualifying projects, and a pilot repair grant program for existing homeowners. The faster track would change review time, which is a separate question from how much sewer capacity there is. A faster review still ends at the same allocation buckets.

When the Capacity Grows

The bigger change is under construction at the Utley Creek Water Reclamation Facility. The plant treats up to 6 million gallons of wastewater per day now and is being expanded to 8 million. The project's total cost is $219 million. At its Jan. 20, 2026 meeting, council approved a $153.16 million Phase 2 construction contract with Adams Robinson Enterprises, plus $15.3 million for construction administration and inspection and $16.8 million in contingency. Town leaders called the expansion necessary for the town to keep approving new development.

The North Carolina Local Government Commission approved $135 million in revenue bonds for Holly Springs projects on March 3, 2026. The state's release projected water and sewer rate increases of 9% to 15% through fiscal year 2031. The capacity expansion is paid for through utility revenue, and that cost shows up on household water and sewer bills.

On timing, the town's September 2024 procurement schedule estimated substantial completion at the beginning of the second quarter of 2028. That date was an estimate, and we found no newer confirmed schedule. Several other projects have target dates around the same window:

• Genentech reached structural topping-out on its $2 billion Holly Springs facility in August 2026. The project is expected to support more than 1,500 construction jobs and more than 500 manufacturing jobs, according to the company. Wake County's January announcement said the expanded facility was scheduled to be operational by 2029.
• FUJIFILM, in its September 2025 announcement, set a goal of 1,400 employees by 2031.
• Complete 540 Phase 2 is still under construction. NCDOT targets late 2028 for its opening.

The allocation policy also places economic development projects in the Operational Reserve bucket, separate from the residential share. Under the policy, job-producing projects and subdivisions draw from different shares of the same annual release.

Questions Buyers Ask About This

Does the allocation policy affect resale homes?

The policy applies to new projects and to changes in an existing project's utility demand. A resale home that's already connected isn't going through the allocation process. It does compete with new construction that the allocation process limits.

Could the rules change?

Council keeps the right to review, modify or deviate from the policy at its discretion, including how capacity is divided among categories. The version described here took effect July 1, 2023.

Is the August median a reliable price guide?

It's based on 26 recorded deed transactions in a single month, so treat it as a snapshot. Prices on a specific street or in a specific phase can differ a lot from it.

If you're comparing south Wake towns and want to know which Holly Springs communities have allocated phases selling now and which are still waiting for capacity, Kingsley Real Estate can go through the council record and the comps with you. If you already own in Holly Springs, start with Get Your Instant Home Valuation to see where your home stands while new-home supply is limited.

This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.