Will 2023 Be A Good Year For Charlotte Home Buyers?

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Will 2023 Be A Good Year For Charlotte Home Buyers?

2023 charlotte real estate

What To Expect In 2023

There’s been a lot of concern about the real estate market for the coming year. But, as much as being a profit of doom garners views and clicks, the reality is not nearly so alarming and could even be a boon for a savvy, patient investor. While mortgage rates will remain high at the beginning of 2023, they’ll gradually come down as the year progresses.

During this time, demand for housing will remain high, and real estate prices should remain strong in some areas. While not every city in the US will enjoy a robust real estate market, Charlotte, North Carolina, remains one of the most robust in the nation.

Here’s a look at why Charlotte is so promising for real estate investors.

A City With a Bright Future

Home to over 800,000 people and the largest city in North Carolina, Charlotte, and its surrounding areas are seeing a lot of growth. The entire area’s population is predicted to surpass 2.5 million by 2025. Also, by 2025, Charlotte will be home to fourteen Fortune 500 companies, making it one of the most economically diverse cities in America.

Why Charlotte? Because it’s one of the greatest cities to start a business or invest in real estate due to its low cost of living compared to salary. Bank of America, Wells Fargo, Lowe’s Brighthouse Financial, and Atrium Health are some notable businesses with regional headquarters in the area.

real estate conditions charlotte nc

Proven Real Estate Market Growth

Charlotte has proven to be one of the nation’s most active real estate markets. From 2014 to 2022, average home equity increases were 121.7%, 44.3% more than the national average for the same period. In addition, the city’s constant increase in property value over the past few decades demonstrates it is among the top locations in the nation for long-term real estate investments.

Charlotte shared second place with Raleigh, Denver, and Seattle in 2022, among the cities with the lowest housing inventories nationwide, but right now, supply cannot meet demand. As a result, developers are building more homes to meet the market, and investors can purchase choice properties in prime locations.

Factors That Make Charlotte a Hot Market

What’s driving Charlotte’s growth? Many factors come into play, from economic opportunities and low living costs to an expanding population and vibrant job market.

1) Strong Job Market

Charlotte is considered the second-largest banking center in the country after New York City. Bank of America and Truist Financial have headquarters there, and Wells Fargo employs more than 25,000 people in Charlotte alone.

Charlotte is also home to Atrium Health and Novant Health. Together, they have brought in more than 150,000 jobs and over $15 billion in annual revenue.

Other high-level job sectors in the area include education, technology, and manufacturing.

why charlotte is growing

2) Rapid Population Growth

By 2025, the Charlotte metro region will have over 2.5 million residents so many more people will need housing. In addition, it has become the fifth most popular destination for millennials to relocate, and as a result of the younger population growth, rental demand has increased.

Due to its population and high-tech companies, Charlotte has become one of the top destinations for real estate investors and developers over the past few years.

3) Excellent For Buy-and-Hold Investors

Real estate investors find Charlotte as an excellent city for investments. With renters making up about half the city’s population, there is a high demand for housing and plenty of possibilities for investors to earn from their investments.

Rent in Charlotte has increased by 11.6% from about $1,550 per month to $1,750 during the past year. In addition, Charlotte’s real estate prices have increased by an average of 12% annually over the previous eight years. Due to Charlotte’s thriving real estate market and the high demand for homes there, investors may expect significant investment returns.

Due to the city’s significant student population, buying apartments or other real estate close to a campus can be a wise and profitable move.

4) Low Cost of Living

Not counting rent or mortgage, the average monthly cost of living for one person in Charlotte is around $950. So, discounting rent and mortgage, a family of four might anticipate spending roughly $3,400 per month on living expenditures.

Another way to view Charlotte’s low cost of living is by noting that residents spend less than most Americans on things like property taxes, transportation, and healthcare. The city’s total rating on Bestplaces.net’s cost of living index is an impressive 98.9.

fast growing charlotte neighborhoods

Best Neighborhoods To Invest In Charlotte

Every day, people from across the country relocate to Charlotte in search of the suburban quiet, tranquility, and conveniences of a big city.

At the same time, trend-following real estate investors have shown a growing interest in investing in the region. Here are some of the best places to invest in Charlotte, NC.

1) Eastover

Charlotte’s Eastover neighborhood is popular, and its rising property prices and population prove this. Residents adore Eastover’s relaxed atmosphere and rich history. Large driveways lead to houses in tranquil settings where friendly, pleasant neighbors create a communal atmosphere, which many families with children look for.

Investing in property in Eastover can be expensive, with condos in the $300ks and larger family homes over half a million. That said, for long-term investors, Eastover is one of the best places to buy property as it becomes more popular and home prices rise.

2) Foxcroft

Foxcroft, one of Charlotte’s most attractive neighborhoods, is a great spot to invest in North Carolina real estate. The area’s greenery and small cafes and eateries attract older people, and it is also home to a significant number of highly-ranked schools, which large families consider whether to rent or buy a home.

Investors should note that residences here are pricier than in other Charlotte neighborhoods, but so is the average income of $120,000. Real estate value here will only appreciate over time.

best neighbhorhoods in charlotte nc

3) Gastonia

Textile mills once flourished in Gastonia, and both Mooresville and Gastonia’s mill neighborhoods enjoy much popularity today. In addition, Gastonia is a steadily developing region ripe for investing, with a population of about 80,000, up from roughly 72,000 a decade ago.

Among the newer local attractions is the Gastonia Honey Hunters—the most recent minor league team in the Atlantic League. They play their home games at the brand-new Fuse District Stadium, constructed in Gastonia for less than $22 million.

Home prices are on the low side as development is still in progress. However, with surrounding regions currently being redeveloped, Gastonia offers a lot of potential for high returns for investors willing to put in some work.

4) Plaza Midwood

Plaza Midwood is one of the greatest places to acquire investment properties in Charlotte due to its proximity to downtown and increasing public transportation network.

Plaza Midwood draws young people looking to rent or buy their first house with its shops, clubs, and restaurants. Here, investors can acquire older homes directly from homeowners struggling with rising prices and willing to sell quickly.

5) SouthPark

SouthPark is a busy neighborhood that attracts young folks who want city life. The district combines residential, commercial, and suburban communities.

SouthPark has many firms and sees more than 40,000 people working there. In addition, the neighborhood has North Carolina’s largest mall with many brand-name boutiques. As a result, SouthPark is considered by many to be one of Charlotte’s most attractive neighborhoods, and it’s growing.

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Investing in Charlotte

Now is the time to invest in new homes and apartments to attract families and young professionals. Charlotte is one of the best locations to live in the country because of its economic prospects, flourishing business sector, nationally-known sports and entertainment destinations, and urban-suburban-rural balance.

Want to learn more about investing in Charlotte real estate? Contact one of our investment consultants at Henderson Investment Group today! 704-544-0253

Shelly Henderson
Shelly Henderson
Shelly calls herself a “Charlottean” because her family has been there since her elementary school days. She serves as Henderson Properties’ co-founder, along with her husband Phil, managing the day-to-day operations, social media branding and leadership development. Her different life experiences, both positive and challenging, earned the title to her first book Starting From Scratch. Shelly has a servant’s heart and leads her company with purpose and passion. She is mom to two sons who continue as young adults to make her heart swell.