Charlotte, North Carolina's housing market has been on the rise in recent years, with home prices and demand continuing to increase. In 2023, the forecast for Charlotte's housing market looks positive, with predicted continued growth in both home prices and rental demand. In particular, certain neighborhoods and areas of the city are expected to be particularly popular with renters and investors.
In this article, we'll take a closer look at the current state of Charlotte's housing market, including trends and prices, and highlight some of the best locations for rental properties in the coming year.
Charlotte’s Housing Market Forecast 2023
According to the latest State of Housing
in Charlotte Report released by UNC Charlotte's Childress Klein Center for Real Estate (CKCRE) in mid-November 2022, Charlotte's housing market appears to be cooling off, though affordable homes are becoming even more scarce.
In 2023, buyers in Charlotte can expect to have more options available to them and a stronger negotiating position. However, it's important to note that high prices and mortgage rates may continue to be a challenge. Local home values are forecasted to increase over the upcoming year.
In order to combat inflation, the Federal Reserve has increased interest rates
to their highest level in 15 years, setting the target range at 4.25% to 4.5%. It is expected that there will be no reductions to these rates until 2024.
Cost of Rent
In every city, the rental market is an important aspect of the overall housing market and can be used to compare the housing markets of different regions. Charlotte has the third highest median rent
among its regional competitors, with only Charleston and Raleigh having higher rates. Additionally, Charlotte has experienced the highest growth rate in median rent from 2019 to 2021 among these cities, a trend that renters can expect to continue into 2023.
Investing Indicators Favor Landlords
Charlotte is a highly attractive location for real estate investors due to its strong housing market and high demand for rental properties. Approximately half of the city's population consists of renters, presenting ample opportunities for investors to earn a return on their investments. Additionally, the city's thriving real estate market and large student population make investing in apartments or other properties near a campus a potentially wise and profitable move. Overall, investors in Charlotte can expect significant returns on their investments.
Positive Net Population Migration
The Charlotte metro region is expected to have over 2.5 million residents by 2025 due to its consistently rapid population growth. This population growth, along with Charlotte's popularity as a destination for millennials to relocate to, has led to an increase in demand for housing. As the fifth most popular destination for millennials, the city's younger population is contributing to this increased demand.
Mecklenburg County Housing Market Trends 2023
The Mecklenburg County and Charlotte housing market has built itself into a strong and stable market that is attractive to both buyers and investors.
How COVID-19 Affected Charlotte’s Real Estate Market
The COVID-19 pandemic has had a complex and multifaceted impact on Charlotte’s real estate market, with both challenges and opportunities arising as a result of the pandemic.
At the beginning of the pandemic, there was a slowdown in the housing market as people began to stay home, and the economy experienced a downturn. However, as the pandemic continued, the housing market in Charlotte began to recover, with some experts attributing the recovery to low mortgage rates and a shift in priorities among potential buyers.
The pandemic has also led to an increase in demand for single-family homes and homes with outdoor space as people look for more space to live and work remotely. Additionally, the pandemic has highlighted the importance of having a home office or other dedicated workspace, which has also increased demand for certain types of properties.
Foreclosure Statistics in 2022
During the first half of 2022, foreclosures in North Carolina
increased by 138.2%, rising from 2,064 to 4,917. This puts the state's foreclosure rate at one in every 958 homes, which is the 17th highest rate in the country.
Charlotte, North Carolina Median Home Prices in 2022
Charlotte Real Estate Market: Should You Invest?
Many investors are finding success in Charlotte. The market has seen consistent growth in recent years, with home prices and rental demand on the rise. In addition, Charlotte has a strong economy and a growing population, which can both contribute to the stability and potential appreciation of real estate investments.
One of the key factors to consider when deciding whether to invest in the Charlotte real estate market is your investment goals and risk tolerance. Real estate investing carries some inherent risks, and it's important to carefully assess the potential rewards and challenges of any investment. That being said, for those who are willing to take on some risk in pursuit of potentially high returns, the Charlotte market can be an attractive option.
With a diverse range of property types and price points available, investors have the opportunity to tailor their investments to their specific goals and needs. Overall, the market offers a combination of stability and growth potential that make it an appealing choice for investors.
6 Best Charlotte Neighborhoods For Rental Properties
There are many neighborhoods in Charlotte, North Carolina, that are popular for rental properties. Some of the best neighborhoods for rental properties in the city include:
1. Plaza Midwood
This trendy neighborhood is popular with young professionals and students and is known for its diverse selection of restaurants, bars, and shops.
2. NoDa - Short for "North Davidson"
This neighborhood is known for its vibrant arts scene and hip atmosphere. It's a popular choice for renters who want to be in the midst of the city's cultural scene.
This historic neighborhood is known for its tree-lined streets and charming bungalows. It's a desirable location for families and professionals alike.
4. South End
This up-and-coming neighborhood is home to a mix of new apartments, converted warehouses, and older homes. It's a popular choice for renters who want to be close to the city's uptown area.
This upscale neighborhood is home to a mix of historic mansions and newer luxury apartments. It's a popular choice for those who want a more upscale living experience.
The Experts in Charlotte, NC, Real Estate
Whether you are a homeowner, investor, or looking for a new rental property, there are many opportunities in Charlotte.
If you are considering investing in the Charlotte real estate market, it can be helpful to work with a professional team like the Warden Collaborative. The Warden Collaborative has extensive knowledge of the Charlotte market and can provide valuable guidance and support as you navigate the real estate process. From helping you to find the best investment properties to assisting with the negotiation and closing process, the Warden Collaborative can help you make informed decisions and achieve your real estate goals. Let the Warden Collaborative be an invaluable resource as you navigate the local real estate market in 2023 and beyond.