If you’re interested in property investment, you should set your sights on Charlotte, NC.
Many investors are attracted to Charlotte, NC, because of its low cost of living and its robust job market. It also boasts an excellent quality of life, good weather, and top-notch education.
These make for a tight property inventory that makes Charlotte attractive to investors.
Areas worth investing in include North Division, Plaza Midwood, and Sunset Road. The suburbs of Myers Park, Ballantyne, SouthPark, and Lake Park are also profitable.
Let’s explore why you should invest in Charlotte, NC, right about now.
Why Is Charlotte’s Property Booming?
Investors gravitate towards Charlotte, NC, for a couple of reasons. Of course, the top reason continues to be its booming property market.
Charlotte’s real estate prices have always been on the rise. Despite the pandemic, investors will see favorable returns, both now and in the future.
High demand for properties will continue because of the following factors:
1. High Population Growth
Charlotte, NC, is the third-fastest growing city in the US, and it’s no surprise. Research shows that the population is expected to grow by a whopping 47% between 2010 and 2030.
In 2020 alone, it was the fifth-most popular state for relocations in America.
More and more people are moving into the Sunbelt City because of the following reasons:
Low Cost of Living
In Charlotte, NC, the cost of living is 5% lower than the overall national average. Of all the tech hubs, it’s the sixth-lowest.
These numbers are made possible by the following factors. Compared to the national average:
- Housing costs are 14% lower
- Utilities cost 8% lower
- Groceries cost 6% lower
- Transportation cost is 3% lower
The only thing higher in Charlotte, NC, is healthcare – which is 3% more than the national average.
Residents looking for a new job will find a strong job market that is predicted to expand over the next 10 years. #NancyBraun #ShowcaseRealty #CharlotteNCHomesForSale #CharlotteNCRealEstatehttps://t.co/JQaaDDJCji pic.twitter.com/4Rhg2m8L93
— Showcase Realty (@ShowcaseRealty) April 4, 2022
Strong Job Market
According to Forbes, Charlotte, NC, is the tenth-most competitive job market in the US. It’s home to 12 Fortune 500 companies and 15 Fortune 1000 companies.
As a business hub, and the home of Bank of America, the city continues to attract bankers and investors alike. Charlotte, NC’s banking/finance industry is expected to grow by 28% by 2025.
It’s also a popular spot for healthcare workers. The two biggest employers in the area at the moment are Atrium Health and Novant Health.
Likewise, this industry is expected to grow the biggest by 2025, at a rate of 43%.
Other companies that continue to drive the Charlotte, NC job rush include:
- Duke Energy
- Honeywell International
- American Airlines
- Wells Fargo
- Charlotte-Mecklenburg School System
Stellar Educational System
Families are moving to Charlotte, NC, not only because of the job opportunities. They’re doing it for their children as well.
The area, after all, is home to some of the best high schools in the state. They include:
- Ardley Kell High, ranked 15th in NC
- Providence High, ranked 18th in NC
- Northwest School of the Arts, ranked 28th in NC
As for higher education, Charlotte, NC, is the location of several post-secondary institutions:
- The University of North Carolina in Charlotte
- Carolinas College of Health Sciences
- Charlotte Christian College and Theological Seminary
- Gordon-Conwell Theological Seminary
- Johnson C. Smith University
- Johnson & Wales University
Charlotte, NC, is also a reasonable drive away from some of the state’s best universities:
- The University of North Carolina at Chapel Hill
- Duke University
- North Carolina State University
Great Quality of Life
Charlotte, NC boasts an excellent quality of life – the seventh-best in the US, according to Numbeo.
This ranking is based on multiple factors, such as:
- Purchasing power
- Cost of living
- Property price to income
- Traffic commute time
Speaking of climate, many people aren’t fans of freezing winters. That’s why more and more people are opting for Charlotte’s humid subtropical climate.
This is backed up by Ed Glaeser’s research. According to the Harvard economist, the warmer a state’s average temperatures, the more the state grows.
Winters in Charlotte, NC, are generally mild. Here, the average temperature at 42.1 °F (5.6 °C.) Precipitation is also evenly distributed, with rainfall averaging 4.35 inches.
Summers, as expected, are hot and humid – averaging at about 80.1 °F (26.7 °C.)
Charlotte is the ninth-most diverse large city in America, according to WalletHub.
The city is indeed a hodgepodge of ethnicities, as seen in a Data USA report.
To date, Charlotte, NC is home to:
- Whites – 40.5%
- Black/African American – 34.7%
- Hispanic (White/Other) – 13.89%
- Asian – 6.19%
Apart from racial diversity, the city also has a good industry diversity ranking of 28 (out of 250.)
Homes in Charlotte, NC, are typically sold 1.85 percent above the asking price. #NancyBraun #ShowcaseRealty #CharlotteNCHomesForSale #CharlotteNCRealEstatehttps://t.co/JQaaDDs0UI pic.twitter.com/db34uLq24v
— Showcase Realty (@ShowcaseRealty) April 4, 2022
2. Tight Property Inventory
According to a report, only 4,100 Charlotte, NC properties are available in the market. This figure cannot meet the current demand, so real estate prices continue to soar.
Further research shows that the median home price has increased to $331,575. Compared to August 2020 prices, this is a staggering 14.3% increase.
But in reality, the average home price in Charlotte, NC is $393,085 – a 12.2% increase compared to last year.
Even with these prices, they are still cheaper than other Sun Belt areas.
In Atlanta, for example, the median price is a staggering $399,000.
In Austin, the median cost has climbed to a whopping $579,000.
Nancy Braun can help you sell your investment property within ninety days. Best of all, she can do so at a rate of 3.59% above the asking price.
Likewise, she can help you find the best investment properties. After all, she has multiple listings in Myers Park, Ballantyne, SouthPark, or Lake Park.
3. Low Mortgage Rates
Charlotte, NC, remains attractive due to low mortgage rates despite the soaring prices.
According to realtor.com, the rates range from 2.48% (15 year fixed) to 3.21% (30 year fixed.) There’s also the 5/1 ARM option, which clocks in at 2.70%.
These figures are comparably low compared to the other ‘hot’ markets, such as:
- New York: 4.59%
- Hawaii: 4.56%
- Alaska: 4.49%
- Maine: 3.83%
- Wyoming: 3.82%
4. Renter’s Market
Homeownership in Charlotte, NC, is lower than the national average (52.9% vs. 64%.) This makes the city a renter’s market.
As such, it’s profitable for homeowners and investors alike.
What Areas in Charlotte Are Growing?
Investors who wish to make the most out of their money should focus on these fast-growing areas:
1. North Division
Playfully known as NoDa, the neighborhood used to be home to farmlands and textile mills. As these industries closed, the area became strewn with abandoned buildings.
Fortunately, its longtime residents pulled together to rejuvenate the city. Thanks to their efforts, NoDa has evolved into a place full of art galleries and affordable home rentals.
NoDa has become a good choice for buyers and renters alike, given its proximity to downtown. These factors altogether make NoDa a good place for dedicated investors.
2. Plaza Midwood
Located east of downtown Charlotte is Plaza Midwood. To date, it’s one of the area’s pricier neighborhoods.
Despite the steep costs (home prices have ballooned by more than $100,000,) more and more people are moving here.
All these are made possible by the Plaza’s hospitality scene, family-friendly spots, and diversity-fueled attitude.
Given these factors, Plaza Midwood is truly one of Charlotte’s best spots for investors.
3. Sunset Road
Located northwest of Downtown, Sunset Road is another great neighborhood for investors.
It’s brimming with nature reserves and farm trails that give the area a load of appeal.
Despite having lower home values, investors will enjoy the quick closing time. Properties in this market only stay on listing for 43 days tops.
4. Select Charlotte Suburbs
In addition to the areas above, investors should also focus on Charlotte suburbs.
As mentioned, prices remain high for both buyers and renters, which means profits on the investor’s part.
Here are four suburbs that realtor Nancy Braun recommends:
Myers Park is undoubtedly one of the best places to invest in Charlotte, NC. Here, investors can list a property at $1.2 million – and have it sell for a whopping $1.3 mil!
Because of the steep property prices, Myers Park homes tend to linger on the market longer. The current list time is 116 days on average.
That said, it’s a definite payday once you sell one!
Ballantyne is one of the hottest areas for investors. It’s a seller’s market, mainly because inventory is tight. In fact, properties are so in-demand that the listing time is only a short 38 days.
This is especially the case for Ballantyne East, which sees home median prices in the $525,000 range. This rate reflects an 11.9% increase in price year over year.
SouthPark is another haven for interested investors. Today, homes here cost a median price of almost $480,000. They’re also sold at the sale-to-list price ratio 100% of the time.
As with most Charlotte, NC neighborhoods, SouthPark is a seller’s market. Here, the listing time is only 45 days, which has slightly increased from the usual 39.
The median listing for Lake Park homes is currently at $370,000. While it seems low, it equates to a 61.3% increase in price year over year.
At its lowest point, Lake Park homes would sell for only $214,000.
Although Lake Park properties stay in the market for about 52 days, they always sell at the asking price.
Given the price increases, investors are sure to get more than their money’s worth over this area. Think of the $100,000+ you stand to earn in the future if you invest in Lake Park homes right now.
Guidelines for Investing in Charlotte, NC Properties
While Nancy Braun and her team will guide you throughout the investment process, it pays for you to determine the following first:
1. Investment Outlook
You’ll want to invest in an area that has a prosperous future. You’re sure to get this in Charlotte, NC, among many other things.
As mentioned, the area has a high demand for real estate. This is made possible by the city’s strong job market, low cost of living, and good weather, to name a few.
It’s also good to look at the development projects in the area, since these will affect your investments.
So far, Charlotte, NC proves to be promising because of these economic projects:
- 16th Street Streetscape
- CityLynx Gold Line Phase 2
- Cross Charlotte Trail
- Little Sugar Creek Greenway
- North Tryon Street Gateway
2. Investment Amount
Before you look at Charlotte, NC homes for sale, you first need to know how much you’re willing to invest. A plan will help ease the selection process since you know how much money you’re open to spending.
You don’t want to waste time shopping around for properties you can barely afford.
Apart from the property prices, you should also factor in the taxes you need to pay. Presently, the county’s tax rate is at 82 cents for every $100 value. You also need to pay the additional 48 cents levied by the city.
All in all, a $200,000 investment property will give you a $2,624 tax bill. While it’s higher than the national average of $2,471, it’s lower than the New Jersey average of $8,300.
4. Investment Team
As an investor, you need to hire a reliable team.
It all starts with your real estate agent. For one, they will help you pick suitable properties according to your portfolio.
Needless to say, Nancy Braun is your best realtor for the Charlotte, NC market. She uses the best strategies, techniques, and systems that yield cutting-edge results.
With the help of Showcase Realty, you can sell your investments faster, and at premium prices, of course.
There are many great neighborhoods in Charlotte, NC, though some stand out from the rest. As mentioned, NoDa, Plaza Midwood, and Sunset Plaza are hot markets. The same goes for the suburbs of Myers Park, Ballantyne, SouthPark, and Lake Park.
If you want to make the most out of your money, you should consider buying properties in these areas.
6. Land Usage
Say you’ve bought a parcel of Charlotte, NC land. You just can’t get started with the construction right away. You need to study the zoning laws and restrictions. Then you need to make your application and wait for the results. The application and approval process can take as long as 90 to 180 days.
If you’re thinking of investing in a rental property, you need to study the tenant portfolio. Make sure to study the lease terms, credits, and payment histories, among many other things.
Final Thoughts: Is Charlotte a Good Place to Invest?
Given the factors stated above, the obvious answer is yes!
Charlotte, NC, has always been a seller’s (and renter’s) market. Thanks to the low mortgage rates, there’s a continuous demand for homes and apartments.
Coupled with the cost of living, weather, and robust job market, Charlotte will remain booming in the years to come.
If you’re interested in investing in NC properties, then make sure to call Nancy Braun of Showcase Realty.
With 24 years of experience under her belt, she can help you find the best real estate in the area. She can also help you sell your investment properties faster – and at higher rates!