Charlotte is one of the fastest growing cities in the U.S., and it’s the most populous in North Carolina. The region is attracting a lot of new residents as well as new business. With home prices soaring, southern states like North Carolina remain more affordable than others along the coasts, and cities like Charlotte offer a lot of opportunity and a high quality of life.
With a lot of real estate markets feeling unapproachable due to their pricey costs of entry and dwindling inventory, Charlotte presents a unique opportunity to investors who are thinking about diversifying their portfolios. If you’re looking for a new market, Charlotte is likely going to get your attention. You’ll find reasonably priced investments, rising rents, and a strong tenant pool.
Local investors have an opportunity here, too. Whether you’re looking to begin an investment portfolio or you have a home that you’d prefer not to sell, owning rental real estate here will give you reliable rental income and quickly appreciating home values.
We love Charlotte, and if you’re looking for a great place to invest, we welcome you to talk to us about it.
Charlotte’s Thriving Local Economy
This area is a hub for financial firms and banking services. More than a dozen Fortune 500 companies make their base here and there’s also a collection of Fortune 1000 companies who maintain offices and operations in Charlotte. Some of the largest employers include Bank of America, Lowe’s, and Duke Energy.
Some of the fastest growing industries represented in Charlotte include:
- Technology start-ups
- Health care and social services
- Finance and Insurance
- Professional Services
In addition to having a strong local economy with a well-paid workforce and highly skilled labor, Charlotte has great schools, diverse neighborhoods, and a high quality of life. Combine that with a lower cost of living than the national average, and you can see why Charlotte is doing so well. People love living here, and the great jobs, temperate climate, entertainment, and recreation are drawing more and more people to the area.
There’s also the University of North Carolina in Charlotte, which has around 29,000 students on campus. Public transportation is also available, which is unique in a mid-size city. The light rail isn’t just convenient for residents; it also generates around $250 million in revenue and creates 7,000 jobs for the local community.
Charlotte has a motor speedway, and international airport, a professional basketball and football team, and lots of shopping, museums, theme parks, and outdoor recreation.
The economy is strong, and that makes it a fantastic place to invest.
Population Growth Means a Strong Tenant Pool
Charlotte is one of the fastest-growing cities in the country, and that’s because a lot of new residents are from more expensive northern cities, like New York.
According to the most recent census, the population of the city of Charlotte increased by nearly 20 percent over the last decade. That’s more than double the growth rate for the entire state.
With nearly 875,000 people in the City of Charlotte and over 2.6 million residents in the metropolitan area, Charlotte is growing quickly, and many of the new people moving into the city and throughout Mecklenburg County are looking for rental homes.
Some of the new residents are homebuyers. But, the market being as competitive as it is now, many of them are thinking they might have to wait for a year or two before they buy a house. That’s great news for investors. It means these residents will have to rent, and they’ll be looking for well-maintained, attractive properties in good neighborhoods.
If you have one of those to rent out, you can count on high rents and good tenants.
Remote work is also driving people to Charlotte. Many employers who set their team members up to work remotely during the pandemic are not in a hurry to call them back into the office. This gives them the flexibility to live anywhere. Charlotte is attractive for all the reasons we’ve already mentioned: there’s a lot to do, the schools are top-notice, and there’s a lower cost of living.
Rising Rental Values in Charlotte
Rental values are going up in Charlotte. While they might be lower than rents in cities like New York, Washington, D.C., and Miami, they’re pretty high by regional standards. Stats from Zumper at the end of 2021 put the average rental amount for a three-bedroom home in Charlotte just under $1,800 a month. When you consider that the price of your investment will be much lower here than in other markets, that’s a pretty comfortable rent to be collecting every month. You’ll find your cash flowing through your property rather quickly, even while it appreciates in value as well.
Vacancy rates are low and retention rates are high. Once you get a good renter in place, you’re likely to keep them.
Rents in Charlotte have increased an average of 10 percent year over year. There’s still room for them to go a little higher, and you’ll have the tenant pool that’s financially qualified and willing to pay those high rents.
While inventory remains low, you’re in a good position to invest in a rental property here. It won’t take you long to rent out your property.
If you’re looking for a profitable, low-stress, high-performing market for your next successful real estate investment, let it be Charlotte. This is a city for the future, and the real estate you buy here now will only grow in value for many years to come.
Over the past decade, Charlotte has enjoyed unprecedented growth and is positioned for that trend to continue through the next several years.
Charlotte is a popular destination for young professionals and their growing families due to its schools, sense of community, and outstanding career opportunities. It’s also a hotspot for retirees who are looking for a low-maintenance lifestyle that’s active and fun.
We’re experts in the local Charlotte real estate and rental markets, and we’d be happy to talk to you about your first steps. Contact us at AM Realty.