Learning all you can about real estate can help you out no matter which side of the equation you’re on. You need to study the trends that dictate how people buy, sell, and rent homes, so that you can make informed decisions.
Homeownership is creeping toward 70% today, which means that plenty of properties are changing hands in every state.
The Charlotte NC housing market offers an interesting case study, because it’s one of the fastest growing cities, is in close proximity to hotspots up and down the east coast, and is one of the most educated areas of the country due to the number of colleges and universities nearby.
People are moving to Charlotte in droves due to career prospects. It’s routinely voted one of the best places to raise a family, and has plenty to offer in the way of nature, recreation, and networking.
However, the state of the housing market is an important detail that anyone living in the city of Charlotte, or considering a move must consider. Most people want to eventually count themselves among the 66% of homeowners in the United States.
Understanding the current state of Charlotte real estate and housing will help you figure out if this is the place to make that happen. This way, you can make a sound investment, whether you are deciding to buy your first home, do a property flip, or rent out a property.
Here’s what five different reports say about the Charlotte housing market in 2023.
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1. The Forecast for 2023 Shows a Balanced Market
The population in the Queen City is just shy of a million people. This means that conceivably, the Charlotte NC real estate market should have a good mix of buyers and renters.
This holds up, as experts report that Charlotte isn’t a buyer’s market or a renter’s market – it’s balanced. The demand for housing is high, and people are moving to the city in droves due to a scorching job market.
According to a study by Laura Barrero and McKenzie Rankin of Axios Charlotte, home sales are down a bit, and many buyers are finding that they have their pick of options. Renters also have plenty of choices, because real estate developers are going out of their way to accommodate the high demand with new rental opportunities popping up all over.
They are building rental developments that cater to professionals in all industries. Many of these developments are mixed use, and feature upscale living combined with retail and office space.
People love having all of their amenities in one place, and Charlotte developers are creating opportunities that let people kick their feet up and enjoy where they live whenever they are away from work.
A balanced market for 2023 means that there are opportunities available across the board no matter which side of the fence that you’re on
This is good to know if you’re thinking of selling your house but aren’t sure what the market holds. Knowing that you will have interested buyers lets you feel confident that your portfolio will keep appreciating in value, whether you own one home or have an expansive list of properties that you rent out to tenants.
2. Charlotte Needs More Houses – Stock Is Running Out
For years, Charlotte was one of America’s best-kept secrets. It’s always been a lovely area, and little by little, businesses and industries began setting up shop, sports franchises kept moving in, and it became clear that this city is a growing powerhouse of opportunity.
Today, many people consider it a smaller Atlanta. The secret is out, and many people jumped into the market looking for opportunities, to the point that a lot of the housing in Charlotte has been bought up.
Not only is housing inventory low in the city of Charlotte, but it’s one of the lowest in the United States. This is a byproduct of the hot housing market, and is a trend that experts don’t expect to slow down anytime soon.
This high demand, mixed with low inventory, leads to prices going up even in places that weren’t formerly the most sought-after. It’s not currently the type of city that you should expect to think of what you want and then quickly and easily go out and find it.
Instead, people in Charlotte should always be prepared to put together a game plan for attacking the market and should have their ducks in a row. If you enter the market unprepared, not having the funds, or not doing your research, you should pretty much expect your dream property to get scooped up before you can get to it.
Even real estate experts who lived and worked through the Great Recession say that they haven’t seen anything quite like the low inventory that Charlotte is dealing with at the moment.
The fallout from 2008 is a big reason for this, as prices have spiked in Charlotte at faster rates than other cities in the same amount of time. Katie Peralta Soloff of Axios Charlotte reports that since more people are moving to Charlotte, this demand only keeps increasing, often at rates that are too hard to keep up with.
Knowing this, make sure that you do your due diligence and get the help of some professionals if you are hoping to find a quality deal in Charlotte. This means having an understanding of Charlotte home prices, neighborhoods, and other issues that might affect the state of housing inventory as you test the market.
It’ll help you make sure that you are prepared to make a deal, whether you’re buying or selling. Double that with the help of real estate agents or other professionals, and you’ll be poised to land the home that you want.
3. Slightly Increase in Rent Value Over the Upcoming Months
Make sure that you also have an understanding of rent value in the city of Charlotte.
It’s always important to understand the current market rent price anytime you decide to make a real estate decision. Currently, the rent prices in Charlotte are a reflection of what’s happening in the entire state of North Carolina.
Carolina renters are experiencing an uptick in what they pay each month, whether they have a 1-bedroom or multiple. In North Carolina, the median cost of rent as of January 2023 is $1,850. When you pair that with a burgeoning and quickly growing city like Charlotte, it’s easy to see why you should expect to pay a healthy amount of money for rent.
Rent is not only quite pricey, but it’s also on the rise. Marco Santarelli of Norada Real Estate Investments reports that the cost of rent is $50 more in January of 2023 than it was the year prior. More job opportunities mean more renters are moving in, so there’s no market incentive to lower the amount that tenants have to pay.
This differs from cities like Seattle. Ryan Fink recently explained how studies showed that rent was falling in the city.
People are often torn between whether it is better to buy or rent, but this option is sometimes taken off the table for people who aren’t able to find a home to purchase, or who don’t have enough time to find a home to purchase before accepting a new job.
Knowing this, many people are approaching and attacking the Charlotte rental market with the same zeal that they approach a new home purchase. You’ll need to have your ducks in a row, get your credit in order, and make sure that you have references in place so that you can land a new property rental without an issue.
This also means that many property owners are taking the time to convert real estate into rentals that tenants can take advantage of. Doing this requires you to take an honest assessment of your home to understand its market value.
A home estimator tool will let you know what kind of equity you’re working with, which can dictate how much you’re able to charge in rent.
4. New Idea and Solutions for Housing Problems
While the Charlotte housing market isn’t without its problems just like any other market, the city also has some of the best and most creative solutions bubbling. There are a variety of new ideas being proposed and kicked around to help counteract many of these issues.
For one, developers are going out of their way to build some sprawling, quality rental properties in some of the most desirable areas. For example, Katie Peralta Soloff reports that the Queens Bridge Collective is a nearly $800 million real estate development that will feature 45 stories and 400 different residential units. It will also include 12,000 square feet of restaurant properties and other amenities that people can take advantage of.
This property will become part of the city’s beautiful skyline and is one of many new investments that developers are putting money into. Other examples include the Levine Museum Apartment Tower, The Pearl, and Carson and Tryon.
Expect these properties consist of a nice mix of high-end residential real estate, commercial, and restaurants featuring immaculate views and close proximity to the city’s most popular hotspots.
This shows a commitment to providing housing and fresh commerce for this growing city, and to accommodate the desires and needs of the diverse demographic of people currently living in the city and moving in.
5. Home Prices Still Rising in 2023
Perhaps the biggest takeaway to consider for the Charlotte real estate market is that home prices are still on the rise for 2023. Laura Barrero and McKenzie Rankin of Axios Charlotte report that the demand is just too high and inventory too low to consider otherwise.
As mortgage rates continue to spike in North Carolina and all over the country, it might be a bit more difficult for new buyers in Charlotte to enter the market without some backing and serious firepower.
By knowing the ins and outs of the market and what you are looking for, it gives you some insight into the asking price and other factors you should consider. You will also need to put together a decent down payment so that you can lock in terms that are favorable to you.
This is also a positive sign that you can expect your property values to keep going up throughout the years once you do land a home purchase.
The Charlotte Housing Market
These five reports explain what you should know about the Charlotte housing market in 2023. Making the decision to purchase or rent out a home is one that you should never take lightly. Having accurate information at your fingertips will help you take the right steps and find a deal when buying or selling a home.
The main takeaways that you need to know are that Charlotte is home to a balanced housing market, the stock of housing is running low, the rent value is slightly increasing, new housing solutions are popping up, and yes, home prices are still on the rise.
Knowing is half the battle, and once you are aware of what the housing market holds, you are poised to make the best decision for yourself, your family, and your real estate portfolio.
The next thing you need is the help of a company that can bridge that gap for you so that you can make whichever real estate transaction makes the most sense.
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