MARKETS & TRENDS
Aerial view of Freedom City Park in Charlotte North Carolina
HOT MARKET
Market Spotlight: Charlotte NC
A HIGH OCTANE MARKET
by Fred Heigold III with RentRange® - A leading provider of market data and analytics for the single-family rental industry
INDEXEDVALUES –VS– JOBS & INCOME
apidly growing population and steady job growth have provided excellent appreciation for long-term buy-and-hold real estate investment strategies and great returns for fix and flip investors since the lows in 2012. The Charlotte-Concord-Gastonia, NC-SC market is the 22nd largest metro in the U.S., the 2nd largest metro area in the Southeast, and second largest banking headquarters in the U.S. after NYC. Charlotte is one of the fastest-growing cities in the U.S. and has one of the fastest-growing Millennial populations. Many great universities around the metro provide a large talent pool for businesses to recruit local talent. Our research shows the Charlotte real estate market will remain very competitive in 2021, with strong demand and limited supply boosting home prices higher. R
Charlotte-Concord-Gastonia NC-SC : 9-Year Index, 2012 to Current
70%
Legend
Employment Change Median Household Income Home Value Rent Price
60%
50%
40%
30%
20%
10%
0%
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
HOME PRICE METRICS Home prices in Charlotte have been booming from late spring through the end of 2020. As of January 2021, median single-family home prices rose to $290,000, or a significant 11 percent year-over-year increase. Single-family rental owners in Charlotte have realized a five-year increase of nearly 45 percent, and timely buyers who purchased homes in 2012 realized a 9-year price appreciation of over 70 percent. Currently, the housing market is very tight, with record low inventory near only one month of supply. The low sup- ply is leading to bidding wars and frequent sales above
list price, making it tough for investors to find deals. Low mortgage interest rates, high demand, and a shortage of homes will continue to propel home pric- es higher through 2021. Charlotte MSA Home Price Forecast through 2021: +7 percent to +9 percent There are many positive signs for the Charlotte market for 2021 and beyond, with multiple factors driving the market momentum. Our analysis points to a rapid increase in prices through the summer, and a flattening period into the end of the year when forbearance protections begin to expire.
74 | think realty magazine :: may 2021
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