Charlotte is the most populated city in the state of North Carolina and one of the fastest-growing metro areasin the U.S, thanks to its diverse economy and quality of life. It’s also home to one of the most thriving real estate markets in the country. Home values in Charlotte have increased by over 86% in the past five years.
Let's take a look at some of the key factors influencing the Charlotte real estate market, as well as why Charlotte is worth considering for investors in 2022 and beyond.
A Persistent Seller’s Market With Buyer Opportunities
Charlotte is the epitome of a seller’s market, with properties selling quickly, prices rising swiftly, and inventory at an all-time low. In fact, Charlotte is currently experiencing its lowest inventory in 17 years. There are 0.8 months of supply — or barely three weeks' worth of inventory.
At the beginning of 2022, average home prices in Charlotte had increased by 24.4% compared to the same time last year. The median property price is now $360,000; a figure that’s certainly not scaring off out-of-town buyers.
Charlotte is also proving to be a magnet for newcomers. The region has seen an influx of buyers from cities such as California, Chicago, New York, New Jersey, and Connecticut.
While inventory remains tight, analysts anticipate it will improve throughout 2022. Sellers who delayed going to market in 2020–2021 will likely do so this year. As a result, conditions for buyers are predicted to slowly improve over the coming months.
Buyers Can Still Take Advantage of Affordable Areas
Although Charlotte’s median home prices are on the rise, it’s still an affordable market for first-time or low-income buyers.
Out of the 165 neighborhoods in Charlotte, some are still proving to be more affordable than others. At the top of this list is Newell, where the average listing price is just $282,500.
Other areas worth noting for their affordability include Ballantyne West, McAlpine, and Sardis Forest.
Now Is the Time To Invest
Charlotte's booming market creates enormous potential for maximizing return on a buy and hold property. At the end of 2021, the average rent in Charlotte was $1,765 per month for a three-bedroom home. Over the last three years, average rents in Charlotte have increased by approximately 23%.
Investors interested in neighborhoods with the highest residential rents should consider Fourth Ward, Barclay Downs, and Second Ward. In these regions, rents range between $3,911 and $6,260 per month. Other areas worth researching include Rock Hill, which had the fastest-growing rent within a year, up 18.7%. Additionally, Gastonia’s rent climbed 10.1% between 2020 and 2021.
PropStream's Heat Map and Estimated Value features identify suburbs or other areas with the most potential, helping you decide on the region that will offer the highest ROI. It provides access to helpful analytics including estimated values, MLS stats, price growth, and rental values.
By using these tools, you can pinpoint the best opportunities within Charlotte so you can take advantage of this thriving market in 2022 and beyond.
