Did you know that Charlotte's cost of living is about 5% lower than the national average? If you're looking for a city rife with entertainment, job opportunities, and excellent schools, then Charlotte is the place to be.
Seeing as the city is expected to grow 50% by 2025, it's no wonder people are moving to Charlotte, NC. Charlotte's also a great city to invest in real estate if you're looking to turn a profit.
This article walks you through all the reasons to invest in Charlotte real estate, whether it's as a first-time home buyer or an investor. Let's begin!
1. Activities for the Whole Family
Are you an outdoor lover? If so, Charlotte is the place to be. It has over 60 parks and 20 golf courses, with endless miles of lush, green trails.
For the sports fans, you'll love that Charlotte has multiple semi-pro sports teams. This includes hockey, soccer, and the Carolina Panthers, part of the NFL. There's also the NBA's Charlotte Hornets and the NASCAR Hall of Fame.
If you're looking for an adrenaline rush, you'll find the world's fastest and tallest giga roller coaster and the largest whitewater river that's also man-made. Families have tons of amusement parks, theme parks, water parks, zoos, and aquariums to choose from.
For the fans of craft breweries, you'll find plenty to visit, along with distilleries and vineyards.
You can also catch a show or visit a theater, museum, and ballet. You'll even find Charlotte's rich history painted on buildings and walls.
2. Economic Growth
The local population has an average annual household income of $65,359. This is because Charlotte offers countless opportunities for economic growth, as it's a business and financial hotspot. There's also plenty of opportunity to further your education at institutions such as the University of North Carolina Charlotte.
Even better, Charlotte is estimated to be the eighth fastest-growing American city.
A report found Charlotte to be one of the best cities in the nation for job seekers. In fact, it ranking 7th in the country. Charlotte's also known for being one of the best places to start a post-college career due to its varied job opportunities.
Some of the large corporations based out of Charlotte include Honeywell and Lowes, to name a few. You'll never be hard-pressed for work in Charlotte, as industries are versatile and plentiful.
If you're pursuing a career in finance, then Charlotte is for you. It's the second largest banking center in the US, next to New York City. Two major banks headquartered in the area include Bank of America and Trust Financial.
3. Attractive Housing Market
Young professionals are interested in Charlotte as there are great public and private schools to choose from and countless career opportunities. Housing prices are manageable ad living expenses are affordable. Charlotte is ideal for young people and their families.
Home appreciation in Charlotte has been consistent, making real estate appealing for homeowners and investors. The pandemic created demand issues for real estate in Charlotte, and home values may increase due to competition. Population expansion may also add to Charlotte's appreciation rates and booming real estate market.
If you're looking for a fast-growing metropolis, Charlotte is the place to be. Every year it increases in population by nearly 100,000 people. It boasts a relatively low cost of living and plentiful job opportunities, drawing first-time homebuyers to the Charlotte real estate market.
Even though interest rates have increased, they still remain affordable enough that people can invest in real estate or purchase a new home. There's also a lack of available housing, driving the real estate market up even more.
Charlotte's known for being landlord-friendly, offering a good quality of life to its residents, and providing plenty of job opportunities and growth.
4. Strong Price-to-Rent Ratio
The price-to-rent ratio in Charlotte is 20, and this is seen as high. But what's a price-to-rent ratio mean?
It means that buying a home is much more expensive than renting a home. It also means that residents who can't find an affordable home to purchase prefer to rent. This opens more business opportunities for rental properties in Charlotte, making it an ideal city for real estate investors.
5. Fast-Growing Population
From 2020-2021, an average of 84 people moved to the area of Charlotte daily. This makes Charlotte one of the fastest-growing cities in America.
But as new residents flock to Charlotte, the need for housing increases. Since Charlotte currently has low inventory with high prices, it's common for newcomers to rent instead of purchase. This creates a strong demand for rentals, so if you're considering investing in Charlotte real estate, it's an optimal way to increase your rental property portfolio.
6. Busy Business Districts
Not only does Charlotte boast countless job opportunities across various industries, but it's known for its busy business districts. Plenty of diverse industries call Charlotte home, and it's seen as a business hub.
This makes the rental market attractive to more people than just short-term holiday renters. As executives come to Charlotte for business trips, they'll need lodging. This paves the way for Airbnb opportunities.
Charlotte's central business district is Uptown and boasts hundreds of businesses great and small. You'll find tech startups and top-of-the-line restaurants.
There are even Fortune 500 companies such as Duke Energy. Companies move to Charlotte to succeed and expand, and since Uptown is the commerce hub, there's tons of access to customers, services, and partners in coworking spaces, tech incubators, and state-of-the-art offices.
North Carolina Housing Market
Now that you know the reasons to move to Charlotte, it's important to understand what the state of North Carolina has to offer anyone interested in investing in real estate.
It's reported that Wake County has an increase of 21% in single-family home sales prices compared from 2019 to 2021. North Carolina's steadily growing population makes it an ideal location for prospective homeowners and investors alike. The local industry encompasses information technology, energy, biotechnology, and finance, which paves the way for steady job opportunities and growth, making North Carlina even more appealing.
North Carlina also boasts top-of-the-line public transportation, great healthcare, educational opportunities, and profitable real estate investment opportunities.
Charlotte Real Estate Market
Like North Carolina as a whole, the Charlotte Real Estate market is trending and a great location for anyone looking to invest in real estate. Charlotte's known to keep up with the national market and offers affordable homes.
The median home value in Charlotte is $402,643, and homes average two weeks on the market. The unemployment rate is 3.5%, and there is a lot of local industry for work.
Charlotte offers a diverse economy. Coupled with its residents' quality of life, it's a great place to invest. The housing market is in demand and rental prices are reportedly up 11.5% year over year.
It's anticipated that Charlotte will continue to be a seller's market with home values rising to meet the demand. If you're considering a rental property to invest in, Charlotte is an ideal location.
Rules and Regulations for Airbnbs in Charlotte
If you're thinking of opening an Airbnb in Charlotte, it's important to understand the city's rules and regulations. This will help you as you navigate your rental properties.
For starters, you must register both short-term and long-term rentals in Charlotte with the Charlotte-Mecklenburg Police Department should they meet disorder risk thresholds. A risk threshold is the amount of risk a person or an organization wants to accept.
Here's what you'll need to comply with:
- Zoning: Charlotte's zoning ordinance regulates the city's land usage, so be sure to review zoning requirements to ensure your property is compliant
- Obtain a Business License: You need this to operate short or long-term rentals, and a fire inspection is required
- Sales Tax and Room Occupancy Tax: If you rent for fewer than 90 days, you need to pay room occupancy tax, which is assessed on gross receipts
Investing in Charlotte real estate is an exciting journey for any property owner. However, you need to familiarize yourself with the rules and contracts not outlined in this guide. You may need to follow HOA rules or adhere to guidelines outlined by a condo board.
Knowing all rules and regulations for homes for rent in Charlotte, NC, can prevent you from receiving fines.
Best Neighborhoods for Charlotte Rentals
It's essential that you choose rental properties in attractive locations. Traditional rentals should be close to job opportunities so renters have ample opportunities to find work.
Here are some of the best traditional neighborhoods if you're looking to invest in real estate:
- Chantilly
- Downtown Charlotte
- Optimist Park
- Third Ward
- Wesley Heights
Best Neighborhoods for Charlotte Airbnb Rentals
If you're to invest in real estate, it's best to buy rental properties that are close to popular tourist attractions and near public transportation. Your rental property should also be near basic amenities.
Here are some of the best neighborhoods for Airbnb rentals.
- Belmont
- Commonwealth
- Elizabeth
- McCrorey Heights
- Villa Heights
What to Look for When Investing
When investing, you need to know what to look for. This includes everything from location to expected cash flows. Here's a list of what you should take into consideration as you consider investing in Charlotte's real estate.
Location
Are you looking for an investment property with beautiful views and green space? It's important to find an investment property close to warehouses, public transportation, freeways, markets, and tax-exempt areas.
How is the area projected to evolve long term? Is the open space nearby protected or could it turn into a noisy shopping center, reducing the value of your rental property? Investigate the area you plan to purchase in before you invest.
Profit Opportunities and Cash Flow
How much money are you projected to make after monthly expenses? You want an investment that offers a solid rate of return. On average, you want inflation to favor the landlord.
You'll also want to take into consideration the benefits of depreciation, a cost-benefit analysis of renovations for a better price before the sale, and mortgage loans compared to value appreciation.
Existing Property or New Construction
Are you looking for new construction? You'll be able to customize it to your specifications, but run the risk of delays and unexpected costs. You also don't know what a newly-developed neighborhood might hold in the future.
Existing properties, however, are faster, more convenient, and may be more affordable.
If you're looking for new construction vs an existing property, be sure to investigate the builder, review property deeds, inspect surveys, compare maintenance costs, and taxes, to name a few.
Credit Score
Your credit score impacts whether or not you're approved for a mortgage, what your rates are, and how much you can borrow. The higher the credit score, the more likely you'll get favorable terms with your lender.
If your credit score is higher than 800, it's considered excellent and will make qualifying for the best mortgage possible. If you need to improve your credit score, you should consistently pay bills on time, try to reduce or pay off debt, keep unused credit cards open if there's no annual fee, and don't apply for new cards, especially when they run your credit score, as this affects the overall rating.
Moving to Charlotte, NC
If you're moving to Charlotte, NC, you'll benefit from plenty of indoor and outdoor attractions, a rich cultural experience, countless dining establishments, and great schools. You're also choosing a city with endless rental possibilities, should you decide to invest in real estate.
Bottom Line Property Management is here to help you with all your rental needs. We offer everything from property management to rental services, so be sure to check out our complete line of services today.
