In an earlier post on our site, we discussed certain city destinations that are ideal possibilities for investing in American real estate and earning rental income.
We talked about various tourist sites that have developed their reputation and socioeconomic well-being on the backs of tourism.
This article focuses on a different, but equally beneficial, strategy for real estate investments, one that is less concerned with tourism and more concerned with resident demographics.
We will also provide you with some insight into a highly appealing place where buying property may be very profitable in this article.
We will accompany you on your exploration of Charlotte. Charlotte is a significant city and commercial hub in North Carolina, with a population of around 2,132,000 people. It is located in Mecklenburg County, North Carolina.
Read also: WHY IS BUYING PROPERTY A GOOD INVESTMENT
When we talk about North Carolina, we are talking about a medium-sized state with 140,000 km2 of lush greenery and extensive stretches of coastline.
By extension, it is the 28th state in the United States, as well as the 9th most populous.
For those of you who are curious about the distinction between north and south, the border between North and South Carolina was drawn in 1712: it was an almost spontaneous decision that had its roots in the difficult administration of territory with too many cultural and land ownership differences.
Today, Charlotte is a city that is constantly growing, with significant changes occurring year after year.
This city is attracting investors, particularly those looking to buy a home in the United States for investment purposes and invest in Real Estate with a long-term income stream.
So, let’s take a look at 5 interesting facts about Charlotte and why you should think about investing in it.
1. Huge Population Growth
Charlotte’s population is increasing at a rate that is more than twice as fast as the national average (181 per cent faster to be exact). The metro region has grown by 17 per cent in population during the last ten years, making it the state’s largest.
Charlotte is also ranked number 5 on the list of places where Millennials (Smartasset.com) are most likely to relocate.
Every day, more than 150 people relocate to the neighbourhood. All of this population expansion, especially among the younger populations, will boost rental demand in the future.
This is the first sign of a healthy real estate market in Charlotte.
2. Low-Cost Real Estate Investments
The average single-family home in the Charlotte metropolitan region costs around $270,000, which is slightly higher than the national average.
Homes in the Charlotte area have appreciated 36 per cent faster than homes nationwide during the last six years. Home values and rentals are expected to rise in the coming years.
This demonstrates that, while property prices are slightly higher, there remains a fantastic potential for investors seeking equity growth.
Rents in locations where our partners invest are somewhat higher than the Charlotte average. These new built rental properties are in A and B-class communities.
Where there is a decent mix of homeowners and rental homes, we observe better appreciation.
It also allows investors to get better financing conditions because they are investing in areas where there are more homeowners than renters.
These regions have a strong sense of ownership. In the Charlotte area, there is currently a 1.2-month housing supply.
3. Rental Housing Is in High Demand
Almost half of Charlotte’s citizens are renters. The number of residences for sale is still quite low.
As a result, potential buyers are being confronted with many bids on properties, driving up prices.
Higher property values may drive out the Charlotte area’s huge and increasing Millennial population, forcing them to rent.
There may also be people who aren’t ready to make a purchase. Because they are concerned about the stability of their jobs and the job market in general as a result of COVID-19.
The Charlotte metro area also has a sizable student population. Johnson & Wales University (13,000 students), the University of North Carolina at Charlotte (30,000+ students), Queens University of Charlotte (1,733 students), Davidson College (1,950 students), and others are among the area’s higher education institutions.
With a large student population that is largely renters, Charlotte has a high demand for cheap rental homes.
Additionally, tenants in crowded cities’ downtown apartments appear to be searching for additional space.
Demand for single-family rental homes is increasing as a result of this.
4. Low Property Taxes
In comparison to the rest of the country, North Carolina has low property taxes. The average tax rate in the state is 0.77 per cent, well below the national average of 1.07 per cent. Keep in mind that property tax rates differ by county and may be higher based on the location of a property.
5. Several Businesses Are Relocating To This Area
As of this year, there are six Fortune 500 corporations based in or near Charlotte, including Lowe’s and Bank of America.
It’s worth noting that Lowe’s insists on all of its lenders having a local presence in Charlotte.
While this project does not create jobs, it does contribute to the local economy in Charlotte.
The Charlotte metro region (after New York City) is the country’s second-largest banking centre, with financial behemoths such as Wells Fargo, Brighthouse Financial, and Bank of America based there.
It’s also home to Atrium Health and Novant Health, two of the country’s major healthcare providers.
There are also several work opportunities in the fields of technology and energy. Duke Energy, for example, is a massive electrical power holding business based in Charlotte.
Nearly 44 per cent of Charlotte’s adult population has achieved at least a bachelor’s degree, compared to an average of 22 per cent in cities nationwide. Charlotte is known as one of the most educated metros in the United States.
As you can see, Charlotte’s broad job market is both stable and expanding. This metropolitan area should continue to see a significant population increase as more employment returns to the local economy and new jobs are generated.
PREDICTIONS FOR THE CHARLOTTE HOUSING MARKET IN 2022 – WHAT MAKES CHARLOTTE AN EXCELLENT MARKET AFTER 2022?
In this part, we will look at the housing market forecasts for Charlotte in 2022. Once again, population growth, job growth, and affordable housing are three critical characteristics of a healthy real estate market.
Charlotte’s metropolitan population should continue to increase at a quick rate in 2022, the employment market will remain solid, and property values will continue to rise–while remaining relatively reasonable.
Here are some home market forecasts and trends for Charlotte in 2022 and beyond.
Charlotte’s Population Will Continue To Rise At A Rapid Rate.
Charlotte is now the country’s 22nd-largest metro. Charlotte’s population is expected to nearly triple in the next ten years, to over three million by 2030.
Despite the fact that North Carolina’s general population has been steadily falling in recent years, Charlotte and Raleigh have experienced rapid growth.
The number of births considerably outnumbers deaths among the younger cohort, contributing to the massive population rise.
Charlotte’s population should continue to expand rapidly in the future, owing to its affordability and attractiveness as a location to live.
This is one of the main reasons why Charlotte is a fantastic place to invest in real estate.
The Job Market in Charlotte Will Remain Strong
When a major event occurs, such as a global pandemic, economies that aren’t well-diversified suffer the most.
Because Charlotte’s economy is so diverse, job losses from COVID-19 haven’t been as severe as they have been in other cities.
Unemployment rates are low in a regular year, and jobs are accessible in a variety of industries.
In management, sales, office and administrative support, Charlotte have a strong mix of employees.
There is plenty of blue- and white-collar jobs available.
Charlotte’s overall GDP will continue to expand in the coming years as more businesses relocate to the city.
Another reason Charlotte’s real estate market is strong is because of its job market.
Home Values In Charlotte Will Continue To Rise
The Charlotte area’s housing inventory is extremely low, resulting in high demand and an increasingly competitive real estate market.
The variables have pushed up property values and will continue to do so. However, when compared to other cities of comparable size, the Charlotte metro is still quite affordable.
As mentioned in #2, the Charlotte metro’s average home value is roughly $270,000, which is slightly more than the national average.
Although median home prices are higher, these cities have had rapid appreciation over the last decade, which has benefited investors.
Furthermore, in some areas, the median rent for a new built single-family house is higher than the Charlotte average.
If you are looking to invest in real estate and want to buy a property in the United States to generate consistent rental income, contact Luvanex Realty today to schedule a consultation and decide whether to invest in Charlotte’s real estate market.