You might want to take a look at the Charlotte real estate market in 2022 if you are interested in property investment. Thanks to the interest of many investors and developers in Charlotte’s potential economic growth, this city becomes very popular in the eyes of real estate markets in the United States. And that is not surprising, considering the job market and population growth in this Sun Belt city.
Charlotte is a city in North Carolina that has seen so much growth, whether in population or business. This city is even one of the most populated cities in the United States, which further attracts people to migrate to Charlotte. The economic growth that you can see in Charlotte is pretty quick, allowing for growth in the quality of life of the citizens as well. However, that is not the only thing that contributes to the popularity of the housing market in Charlotte.
Aside from the Charlotte population growth, this city’s financial state is also one of the things that further improve its real estate market. The metro area of Charlotte is one of the largest financial centers in the US. This city has become home to popular sports teams and so on. On top of that, Charlotte has excellent year-round climates, which is not what you can say for other states in the country.
Many buyers seek real estate in Charlotte to find job opportunities. They are also interested in the relatively affordable houses you can find in Charlotte. It is not surprising if you are one of those people, which is why we are going to tell you everything you need to know about the real estate market in Charlotte.
Charlotte, NC Real Estate Market
Before we talk about whether or not investing in Charlotte is a good idea, let’s talk about the median home price in Charlotte NC. That way, you will be able to decide if you have the right budget to find a home in this area. It will also help you determine whether or not Charlotte has some great affordable options for you.
The median home price in the real estate market of this city is around $343,760. Thanks to Charlotte’s impressive growth, this value increased in the last year by 25%. You should keep in mind that this value increase is quite impressive compared to other areas in the United States. Most median home values across the United States only increase around 19.3% over the same period.
As you can see, the real estate prices in Charlotte seem pretty hot. However, would it be a great place to invest? Though the prices seem quite high, you can invest in Charlotte’s market. You need to keep in mind that you will come across a few competitions. A lot of people are racing to invest in Charlotte, thanks to its historically low-interest rates. On top of that, there is a forecast that says the median home value around the neighborhood will increase by 21% over the next year.
The Charlotte real estate market is pretty hot right now. And it will only grow hotter over the next few months. Because Charlotte is a very fast-growing metro, the rate of appreciation in this area will increase rapidly. This city adds up to 100,000 people every year. And with this rate, Charlotte will hold 2.8 million people soon, as told by HomeUnion, Inc.
You also need to keep in mind that Charlotte has a low cost of living yet many job opportunities. These are some factors that attract people to move into the city. And that also means the real estate market in Charlotte will become even hotter.
Today, most sellers in Charlotte maintain leverage over home buyers. The prices of homes in this city have appreciated quite a lot in quite a short time. Despite all of that, you might still have room for future appreciation in Charlotte real estate. So, you should not worry too much if you are trying to invest in Charlotte’s real estate. You can expect some amount of appreciation.
Average Rent in Charlotte & Rent Prices
Now that you know the median house price in this city, you might want to learn more about the renting price trend in Charlotte. Thanks to the pandemic, the renting price trend in Charlotte is pretty much similar to that of other major cities in the United States. Rent prices have increased by 15.5% over the last year, which is quite a significant upward trajectory.
The increase in renting prices is mostly thanks to the supply and demand constraints in the housing market since the pandemic. Many people resort to renting since they are priced out of buying. Other than that, most people who plan to buy end up cannot find a home in the middle of all of the competition. This situation has increased the demand for rental units pretty significantly.
The average rent in Charlotte NC will cost you around $1,693. The rent price ranges from $1,198 to $2,047 depending on what type of housing you rent. A studio will cost you the cheapest, while a 4-bedroom will cost you the most expensive. Between those two types of units, you will find the 1-bedroom priced at $1,194, the 2-bedroom priced at $1,273, and the 3-bedroom priced at $1,521.
As a comparison, the median rate for rent in the United States is around $1,309. As you can see, the median rental rate in the United States is 29.3% lower than Charlotte’s. This gap has become more prominent, especially over this year. Essentially, the same thing happens in the Charlotte real estate market today.
You can safely assume that the rent rate for Charlotte housing will increase more significantly than last year. However, it is too soon to decide how much the rental rate will increase shortly. Since more people cannot afford to buy, landlords will become very powerful in terms of adjusting the rent prices.
Charlotte, North Carolina Housing Market Report
Unfortunately, foreclosure filings started to increase significantly during the end of 2021 in Charlotte. Why? Well, simply because government assistance started to end during that time, causing banks and lenders to foreclose on owners. Thanks to the government-initiated moratoriums, banks and lenders were not allowed to file foreclosures on distressed owners. But that all changed at the end of 2021.
Based on information from the Foreclosure Market Report by ATTOM Data Solutions, many lenders started the process of foreclosure on as many as 25,209 United States properties in the third quarter of 2021. That is 32% higher than the previous quarter and 67% higher than a year ago. It is even the first double-digit increase quarterly since 2014.
Foreclosure actions started on several properties, including abandoned and vacant properties. The mortgage services began the foreclosure actions to benefit communities and neighborhoods. The executive vice president of RealtyTrac, Rick Sharga, said that the increase in foreclosure statistics is probably caused by these actions.
Although the foreclosure statistics in Charlotte seem quite high recently, you should note that the housing market in this city usually counters national trends. While many metropolitan areas in the United States have increased foreclosure filings, Charlotte experienced a decrease in quarterly foreclosure at the end of 2021. Thanks to the excellent collaborative efforts of the mortgage industry and local government, Charlotte has reduced foreclosures quarter over quarter.
Is Charlotte the real estate market for you?
Now, for the question, you have all been waiting for. Is it a great idea for you to buy a house in Charlotte right now? Well, many home sellers can tell you that the average profits today are higher than ever, including the profits in Charlotte. Homes today are selling for more money than they have in the last couple of years, which says a good thing about the Charlotte real estate market.
Whether or not it is a good time to buy a house in Charlotte depends on many factors. Especially, it depends on what you are planning to do with your new asset in this city. You will find two factors affecting the investing community in Charlotte. These factors include relative affordability and demand.
The median home value of $343,760 is certainly higher than what you will find across the nation. However, experts predict that this value has room for growth. That means that the average price in Charlotte today might just represent a great bargain compared to future valuations. And with the increasing growth of the Charlotte population, the future value of Charlotte properties become very promising.
Things To Know Before Investing in Charlotte
Investing in Charlotte’s real estate can be very beneficial. However, you might want to consider a couple of things before you put your money in. These things include job growth, quality of life, affordable real estate, landlord friendliness, and the student rental market conditions.
Job Market
A strong job market is one of the best properties that an area can have. The prospects of investing in an area with a strong job market become more attractive. On top of that, a strong job market also means that you will have more capable renters and buyers around the area, allowing you to gain more profit from your property.
The local job growth in Charlotte is very impressive, which is why the Charlotte housing market is quite strong. The job market increase reaches 2.7% over last year. And experts predict the job market to reach 45.2% over the next ten years, which is very promising for the Charlotte metro population.
Quality of Life
Charlotte is the number 20 city on the list of the Best Places to Live in the United States. Many people love to call Charlotte a home, which means that the quality of life in this city is also quite high. And this high quality of life will increase the housing demand that will benefit the investors.
You might want to take note that the housing market in Charlotte is starting to shift to the younger demographic. People under 20 make up 26.4% of the people living in Charlotte. This is probably due to the growing job opportunities you can find in Charlotte. Since this city has quite a strong economic identity, more and more young people are interested in making a living in Charlotte.
Affordable Real Estate
The affordability of housing will attract more buyers to the Charlotte real estate market. The cost of housing in Charlotte has increased in recent years, making it more expensive than the national average. However, Charlotte can offer better value than other cities of a similar size.
Landlord Friendliness
Another factor you should consider before investing in Charlotte is the landlord’s friendliness. Many investors in Charlotte decide to use long-term rental strategies thanks to the higher home values. Fortunately, the housing market in this city is very landlord-friendly.
Student Rental Market
The last thing you need to consider is the student rental market condition in the area. Charlotte is home to several big universities, including The University of North Carolina, Davidson College, Johnson C. Smith University, and the Queen’s University of Charlotte. You will find many other universities around Charlotte, which is why you can see the younger demographic in the city. With the growing student rental market, the investors will gain many benefits.
Final Thoughts
Charlotte is a wonderful city that has amazed us all with its incredible growth. The real estate market of this city is pretty impressive, with the median housing value higher than most areas across the state. Despite all of that, there is still room for growth in the housing value in Charlotte, which is why investing in this city can be a great idea. So, what are you waiting for? Go ahead and take a look at the Charlotte real estate market today. You might find Charlotte to be a good place for you to invest your money.