At the beginning of the year, we released our list of the 10 best places to invest in real estate 2020 where Charlotte ranked 4th. Now that we’re in the second half of the year, you probably want to know whether the market remains a good place to consider for buying rental property. How can we describe the real estate market in Charlotte, NC today? High demand and low supply – words that every property investor wants to hear! If you’re wondering why Charlotte is a great market for real estate investing, keep reading. In this Charlotte real estate market overview, you’ll find all the trends and real estate data you need to know to decide whether or not to invest in Charlotte in 2020 and beyond.
Related: Best Places to Invest in Real Estate in Q3 2020
Charlotte Housing Prices
The lack of affordability is a challenge for those wishing to invest in top locations in the US housing market like Boston, New York, and Los Angeles to name a few. However, this is not an issue for Charlotte real estate investors. While current house prices in Charlotte, NC exceed the national median, Mashvisor’s real estate data show that they’re considered affordable when compared to prices in other major cities of the same size. According to our data, the median property price in Charlotte is $427,732 ($208 price per square foot).
In addition, the latest Charlotte real estate market forecast suggests that home prices will remain flat or decrease slightly in the next twelve months. This is due to the impact of the coronavirus pandemic which has impeded the real estate sales activity in the nation. The pandemic caused the number of Charlotte home sales and closes sales to drop by 22% as of April. However, COVID-19 didn’t have any effect on home prices which is why experts predict for them to remain steady in 2020, which is good news for real estate investors.
Charlotte Job Market
An important factor to study to understand Charlotte, NC real estate market is the job market. And it’s safe to say that Charlotte has a strong a booming job market which supports the housing market. Charlotte ranks as the 7th best place for business and careers according to Forbes. The metro area hosts seven Fortune 500 companies and the country’s 2nd-largest banking center after Wall Street. Employment in Charlotte increased by 17.4% over the last five years, with nearly 197,000 added to the workforce. The job market growth here is happening in numerous sectors including energy health care, education, research, and high-tech.
A booming job market and increased diversification are just two of the many reasons why so many people and businesses are moving to Charlotte. As a result, this economic expansion is fueling the demand for the Charlotte housing market. With nearly 900,000 people in the city and almost 2.6 million residents in the metropolitan area, Charlotte ranks near the top for population growth in the US. This surging population is helping the Charlotte real estate market rank as one of the best markets for real estate investors. You can expect that a lot of the new population will be looking for rental properties.
You can find the best Charlotte investment properties using Mashvisor’s Property Finder! Simply sign up for a FREE Mashvisor account to start your property search.
Charlotte Rental Market
The growing economy and population in Charlotte, North Carolina will naturally lead to the next Charlotte real estate market trend which is the strong rental demand. Charlotte is not only one of the fastest-growing cities in the US, but also one of the fastest-growing millennial population. It’s also the second-largest metro area in the Southeast. In addition, the high price to rent ratio of 23 confirms that the demand for Charlotte rental properties is strong as renting is relatively cheaper than buying a home here. This is great news for investors looking to buy Charlotte NC home for sale to rent out on a long term basis.
According to US Census Bureau data, the homeownership rate in Charlotte, NC is 53%, which is lower than the national average of 64%. This also means that nearly half of the population (47%) are renters. This tells real estate investors that there is a large pool of tenants to rent out to. Plus, experts’ predictions suggest that Charlotte will continue to attract new migration in 2020. All of this means that traditional Charlotte rental properties will continue to enjoy high demand and be profitable. Mashvisor’s Charlotte real estate market statistics show that investors can earn $1,539 in rental income from renting out traditionally.
Check out these 5 Best Rental Investment Markets for 2020
Airbnb Charlotte 2020
Many real estate investors prefer the short-term rental strategy (buying an investment property and renting it out on Airbnb). So how’s Airbnb Charlotte doing in 2020? According to our Charlotte real estate market data, Airbnb investments here are even more profitable than traditional ones. The expanding economy and the numerous tourist attractions bring millions of visitors to the city every year, driving the demand for Airbnb Charlotte short-term rental properties. Moreover, the Airbnb occupancy rate here is 50%, the average Airbnb daily rate is $124, and the monthly Airbnb rental income is $2,172. Therefore, renting out on Airbnb is the optimal strategy for Charlotte real estate investors.
However, is it legal to buy houses for sale in Charlotte, North Carolina for the purpose of renting them out on Airbnb? Unlike many major US cities and tourist destinations that prohibit investors from renting out non-owner occupied rentals, Airbnb Charlotte became fully legal in 2020. There are currently no Airbnb regulations guiding the operation of short-term rentals in Charlotte. Here, you’re allowed to rent out any type of property as a vacation rental (single-family homes, multi-family homes, duplexes, triplexes, townhouses, apartments, etc.). Plus, there are no limits on the number of days per year you can rent out the property.
However, there are some regulations that investors need to check and comply with before buying an Airbnb property in the Charlotte real estate market 2020. These include zoning regulations, obtaining a license, and paying Room Occupancy Tax and Sales Tax. Besides these regulations, Charlotte is one of the best cities for Airbnb investment!
Related: 20 Cities with No Airbnb Legal Issues in 2020
Where to Invest in the Charlotte Real Estate Market?
Now that you know the details of the positive Charlotte real estate market trends and forecast for 2020, you might have started thinking about buying an investment property here. But where should you start your property search? Using Mashvisor’s data and Real Estate Heatmap, we were able to identify the best neighborhoods for investing in Charlotte, North Carolina real estate. With the help of Mashvisor’s Rental Property Calculator, you can then start analyzing homes for sale in each neighborhood until you find the best one to invest in. Below is a list of the most profitable neighborhoods in Charlotte for both the traditional and Airbnb rental strategy.
To learn more about how we’ll help you make faster and smarter real estate investment decisions, click here.
Best Neighborhoods in Charlotte, NC for Traditional Investing
#1 Southside Park
- Median Property Price: $159,900
- Price Per Square Foot: $152
- Average Days on Market: 42
- Price to Rent Ratio: 10
- Monthly Traditional Rental Income: $1,400
- Traditional Cash on Cash Return: 4.4%
#2 Reid Park
- Median Property Price: $175,000
- Price Per Square Foot: $140
- Average Days on Market: 23
- Price to Rent Ratio: 12
- Monthly Traditional Rental Income: $1,161
- Traditional Cash on Cash Return: 3%
#3 McAlpine
- Median Property Price: $241,233
- Price Per Square Foot: $148
- Average Days on Market: 23
- Price to Rent Ratio: 12
- Monthly Traditional Rental Income: $1,698
- Traditional Cash on Cash Return: 2.9%
#4 Derita/Statesville
- Median Property Price: $178,900
- Price Per Square Foot: $124
- Average Days on Market: 26
- Price to Rent Ratio: 14
- Monthly Traditional Rental Income: $1,036
- Traditional Cash on Cash Return: 2.3%
#5 Montclaire South
- Median Property Price: $232,000
- Price Per Square Foot: $137
- Average Days on Market: 48
- Price to Rent Ratio: 18
- Monthly Traditional Rental Income: $1,093
- Traditional Cash on Cash Return: 2%
Best Neighborhoods in Charlotte, NC for Airbnb Investing
#1 Governor’s Square
- Median Property Price: $677,400
- Price Per Square Foot: $212
- Average Days on Market: 54
- Average Airbnb Daily Rate: $114
- Monthly Airbnb Rental Income: $3,311
- Airbnb Occupancy Rate: 45%
- Airbnb Cash on Cash Return: 8%
#2 Idlewild South
- Median Property Price: $250,610
- Price Per Square Foot: $131
- Average Days on Market: 26
- Average Airbnb Daily Rate: $115
- Monthly Airbnb Rental Income: $3,308
- Airbnb Occupancy Rate: 61%
- Airbnb Cash on Cash Return: 7.7%
#3 Southside Park
- Median Property Price: $159,900
- Price Per Square Foot: $152
- Average Days on Market: 42
- Average Airbnb Daily Rate: $141
- Monthly Airbnb Rental Income: $2,260
- Airbnb Occupancy Rate: 47%
- Airbnb Cash on Cash Return: 7.7%
#4 Reid Park
- Median Property Price: $175,000
- Price Per Square Foot: $140
- Average Days on Market: 23
- Average Airbnb Daily Rate: $117
- Monthly Airbnb Rental Income: $2,402
- Airbnb Occupancy Rate: 55%
- Airbnb Cash on Cash Return: 7.5%
#5 Marlwood
- Median Property Price: $182,485
- Price Per Square Foot: $138
- Average Days on Market: 60
- Average Airbnb Daily Rate: $183
- Monthly Airbnb Rental Income: $2,322
- Airbnb Occupancy Rate: 41%
- Airbnb Cash on Cash Return: 6.9%
To start looking for and analyzing the best Charlotte investment property in your neighborhood of choice, click here.
The Bottom Line
All of the above trends and data show us why Charlotte is a great market for real estate investing in 2020. Whether you’re going for traditional long-term rentals or Airbnb short-term rentals, you can surely find profitable real estate opportunities here. Of course, you can find these investment opportunities easily and quickly when using the right tools that Mashvisor provides. So once you’re ready to start your rental property search in the Charlotte real estate market, be sure to start your 7-day free trial with Mashvisor!
