Charlotte Trolley, North Carolina
INDEXEDVALUES –VS– JOBS & INCOME
Inward population migration from relocations, families are likely to rent an SFR before buying.
It is cheaper to buy than rent with 20 percent down (using median purchase and rent prices), and about the same monthly payment with 10-15 percent down. Families who are currently renting are looking to take advantage of historically low interest rates and purchase a home. Lower-wage industries (renter cohort) have much higher unemployment vs. the headline number. This group will need more affordable options and may weigh down multifamily price appreciation. When the eviction dam breaks, this may lead to high vacancy rates and reduce the “qualified” renter pool.inventory nesses and residents, helping the local economy continue to expand. Real estate investors looking for a large market with great economic fundamentals should seriously consider the Charlotte market. The economic and population growth momentum is one of the best in the country, and the local real estate market will benefit from these trends. •
THE BOTTOM LINE Charlotte has been, and will continue to be, one of the best markets for real estate investors. Consistent population growth and thriving high-tech and professional services industries will help to buoy the real estate market. Compared to other major metros, Charlotte is still rel- atively affordable for renters and buyers alike. These are good signals of a healthy market, and the area provides many opportunities for successful long-term invest- ments. Charlotte should continue to attract new busi- SFR rental inventory is at near lows from the eviction moratorium and increased lease renewal activity. High occupancy and low turnover provide limited choices for people to price-shop SFR options. A large cohort of Millennials are moving to the area. According to Census data, the homeownership rate in Charlotte, NC is 53 percent vs the U.S. average of 64 percent. This indicates a much higher than average renter population of 47 percent. Families exiting forbearance will need a place to rent, increasing demand for SFR rentals.
Fred Heigold III is the senior data analyst at Altisource® / RentRange®, an industry leader in market data and analytics for the single-family rental housing industr
76 | think realty magazine :: may 2021
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