SFR PRICEUPSIDE FACTORS: 1 Low mortgage interest rates will continue to drive high demand for homeownership and investing. 2 New listing inventory is near all-time lows reached in December, and total active inventory has dropped by nearly 50 percent vs. January 2020. In December, MOI was down to its lowest level in history with only a 30-day supply given the current sales velocity. 3 Business relocations and job availability will continue to drive population growth in the area.
4 The deadline to apply for forbearance is June 30, 2021 – and those in forbearance can get up to 18 months of reprieve. Eviction moratoriums and forbearance extensions have put the distressed property market on pause, further limiting inventory through the summer. 5 “Distressed” sellers exiting forbearance programs have many foreclosure avoidance options. They may be able to sell at market-rate prices, avoiding the foreclo- sure-driven negative appreciation spiral seen back in 2008.
Current Rent Price
Rent vs Income
Gross Yield
Current Home Price
© 2021 Mapbox © OpenStreetMap
© 2021 Mapbox © OpenStreetMap
© Mapbox © OSM
© Mapbox © OSM
3Bd SFR Rental Price
Rent vs Income
Avg Yield
SFR Home Price
$1,100
$1,700
20.0%
35.0%
7.0%
12.0%
$150,000
$350,000
RENTAL RATES As of February 2021, the average three-bedroom, sin- gle-family rental home in the Charlotte MSA is $1,470/mo, an increase of five percent from last year. Raleigh MSA rentals in the same class are $115 higher at $1,585 giving an edge to Charlotte for rental housing affordability. Real estate investors in the Charlotte market have had 5-year SFR rent price appreciation of 34 percent overall, with an average increase of 6.8 percent per year. Even though rental prices have risen 14 percent faster than incomes over five years, overall affordability for ten - ants remains healthy compared to other metros. Char- lotte’s rent-to-income ratio for 3bd SFR homes is 26.5
percent, which is well below the national average of 31.2 percent for metro MSAs. The gross rental yield average for 3bd single-fami- ly properties is a moderate 8.5 percent for the metro, with most zip codes in Mecklenburg county have a GRY between 7.5-8.5 percent. Charlotte ranks 26th in the U.S. for five-year SFR rental price increases at 33.6 percent. In comparison, Raleigh’s rents have increased only 23 percent in the same five-year span. Charlotte MSA Rent Price Forecast through 2021: +4 per- cent to +6 percent
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