Charlotte Real Estate Market 2023

Median home values stats and descriptions

In 2022, the median home value in Charlotte is $369,109—that’s 7.52% greater than the national average! For RealWealth investors in Charlotte, the average price of homes purchased was $450,000. The reason for this is simple: real estate values are higher for newer properties in revitalized neighborhoods than they are for resale homes. And since RealWealth works with property teams that offer new construction properties as well as REAL Income Properties™, it makes sense that the average home price would be higher.

Median Monthly rent stats and descriptions

Rent for a typical Charlotte rental property averages $1,750 a month. The average monthly rent in places where RealWealth members invest is $2,250. In Charlotte, the average RTV ratio is 0.47% for a typical investment. RealWealth investors here see an average RTV ratio of 0.5%. Both of these are lower than the national average RTV of 0.57%. In the past, investors typically sought properties with a 1% RTV ratio (i.e. conforms to the 1% rule). Nowadays, 0.7% is considered a good risk-adjusted return. 0.5% ratio is a good target for investors whose focus is long term appreciation. And Charlotte real estate is dependable in this regard. It’s worth noting that the price-to-rent ratio in Charlotte is 17. This means that for residents, renting is more cost-effective than buying. 47% of households in Charlotte rent their homes which means there is a high demand for rental properties.

Median home value appreciation rate (compared to last year and last 11 years)

In the past year, from July 2021 to July 2022, Charlotte home prices rose 21.9% from $302,769 to $369,109. Charlotte homes have appreciated at a double-digit rate for the last eight years. From 2014 to 2022, the average Charlotte home has appreciated by 12% yearly compared to the national average of 9.1% for the same time period. The average total gain in home equity from 2014 to 2022 is 121.7 % compared to the national average of 84% for the same time period – that’s a difference of 44.3% in equity gains!

Median monthly rent appreciation rate (compared to last year and last 11 years)

The median monthly rent in Charlotte has increased by 11.6% over the past year, from $1,568 to $1,750. Home values in Charlotte are growing at a rate that is more than twice that of rent costs. This is another reason why residents prefer to rent rather than buy a home. In the past eight years, starting from 2014, Charlotte’s rent prices have increased by a total of 50.89%. This is 24.52% above the national average for that period. Rent prices in Charlotte have increased at an average rate of 6.05% per year over the past eight years.

Hot real estate market

The Charlotte real estate market is one of the hottest in the country. And the numbers don’t lie: average home equity gains from 2014 to 2022 are 121.7%, 44.3% greater than the national average for the same time period. The city has a proven track record of being one of the best places for long-term real estate investments in the country, evidenced by its consistent rise in property value over the past few decades. And it’s one of the hottest markets in the country right now. In April 2022, Charlotte tied Raleigh, Denver, and Seattle for second place on the list of cities with the lowest housing inventories in the country. Demand outstrips supply. This creates an opportunity for developers, who build more homes to meet the demand, and investors, who buy homes in areas of high demand. Realtor.com recently reported that housing inventory is on the rise in Charlotte. The Queen City was ranked fourth among the nation’s 50 biggest metro areas with an increase of nearly 30% in newly listed homes for June—but demand for housing is still greater than the available supply!

Population growth rate is almost twice as fast as the US average

The Charlotte metro area is estimated to have a population of 2.8 million by 2025, which means that there will be a lot more people who need homes! Charlotte is ranked #5 among the top places where millennials are moving; with an influx of younger residents comes an increase in rental demand. Over the last several years, Charlotte’s population and high-tech industries have contributed to making it one of the top markets for real estate investors and developers.

Low cost of living

The average cost of living for one person in Charlotte is just under $950/month. This number doesn’t take into account rent and mortgage payments. A family of four can expect to spend about $3,400/month on living expenses without including rent or mortgage payments. You’ll pay less than the average U.S. citizen on things like property taxes, transportation and health care costs in Charlotte. The city gets an overall score of 98.9 on Bestplaces.net’s cost-of-living index.

One of the best markets for buy and hold investors

Charlotte is a great city for real estate investors. Nearly half of the city’s residents are renters, which means there’s a high demand for properties and a lot of opportunity for investors to make money on their investments. The booming real estate market in Charlotte has created a high demand for properties, meaning investors can see substantial returns on their investment. Rent in Charlotte is 11.6% higher than it was last year, from $1,568 per month to $1,750. Also, in the past 8 years, Charlotte real estate prices have risen by an average of 12% per year.

Strong job market

Charlotte is known as the second-largest banking center in the United States, after New York City, with Bank of America and Truist Financial headquartered there. Wells Fargo has more than 27,000 employees in Charlotte alone. Charlotte is also home to two healthcare providers: Atrium Health and Novant Health. They boast a combined annual revenue of $15 billion as well. Between May 2021 and May 2022, Charlotte gained 152,000 jobs—that’s a growth rate of 3.3%.

High student population

Charlotte has a number of colleges and universities with large student populations, including Johnson & Wales University (13,000 students), the University of North Carolina at Charlotte (over 30,000 students), Queens University of Charlotte (1,733 students), and Davidson College (1,950). Because of the large number of students in the city, investing in apartments or other real estate near a college campus can be a smart strategy.

Newsworthy building developments and projects in Charlotte

Centre South

Centre South is a mixed-use development located in the historic South End neighborhood of Charlotte. The project, built by Boston developer The Fallon Company, will include affordable housing, retail stores, a hotel, and office space. Construction began on the first phase of the project in 2021—a 310,000 square-foot office building that will include affordable housing. The project has been highly anticipated by residents of the area due to its location: it is near both Uptown Charlotte and Bank of America Stadium.

Seventh and Tyron

Charlotte’s new crown jewel, Seventh & Tyron will be the city’s most exciting neighborhood. This $600 million redevelopment is a coordinated effort by the city, Mecklenburg County, Charlotte Mecklenburg Library and Bank of America Corp. The plan is to revitalize the area around Sixth, Seventh and College streets in uptown Charlotte. It will feature restaurants, shops and a library—all within walking distance of each other. This project will be a magnet for business and tourism and also be a modern day architectural marvel.

South End Apartment Tower

The Charlotte South End Apartment Tower is going up on the site of the popular Sycamore Brewery. The property is being redeveloped by Atlanta-based developer Portman Residential, who has already completed several other high-profile projects in Charlotte. The tower, which will be named 2161 Hawkins Street, will sit right off the Charlotte Rail Trail and the Light Rail Blue Line. The new Portman apartment tower will feature 18,700 square feet of restaurants and shops that face both Hawkins Street and the Rail Trail.

Charlotte Metro Tower

The Duke Energy Plaza is a 40-story skyscraper under construction in Uptown Charlotte, North Carolina. It will be 597 feet tall when it is completed. After its completion, the new Duke Energy headquarters will be the third largest building in Charlotte by leasable square feet and serve as the company’s corporate headquarters. Duke Energy’s proposed office tower will be able to fit up to 4,000 employees and contractors. It’s being built on South Tryon Street, next to the Gantt Center.

Eastland Redevelopment

The City of Charlotte and Crosland Southeast plans to breathe new life into 77 acres of vacant land at the location of former Eastland mall. The project will increase housing affordability, and provide an economic spark for the area. The site of the former Eastland Mall in Chicago will now be known as Eastland Yards. This new development will feature everything from single-family homes to affordable housing, signature recreational areas, and more.