North Carolina Real Estate Market- Overview
When looking for the best real estate investments for 2019, one should focus on cities with relatively high population growth, and of course, employment growth. Both population growth and increased employment opportunities translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable. So, what about the North Carolina real estate market?
North Carolina has a population growth of 1.14%, which ranks 14th in the US and far higher than the national average of 0.7%. Furthermore, the state’s economy is strong and very diverse. It depends on several industries such as information technology, energy, and finance. The solid economy of North Carolina means that there is a constant influx of people looking for a place to buy or rent. This makes the North Carolina real estate market one of the hottest in the US.
North Carolina is known for its charming rural areas, amazing beaches, fascinating culture and of course, the year-round recreational opportunities. The cities of Raleigh and Durham, together with the town of Chapel Hill, form what is known as the Research Triangle. This is a geographical triangle that is anchored by the three major research universities of North Carolina: North Carolina State University, Duke University and the University of North Carolina at Chapel Hill. Additionally, the area is home to numerous high-tech companies and enterprises that are connected to the universities’ research facilities.
In the recently published PwC report “Emerging Trends in Real Estate: United States and Canada 2019,” North Carolina earned 3 spots in the top 10 US markets to watch. The report, which sheds the light on the latest hot real estate market trends, ranks the top US housing markets that have the potential to grow. The North Carolina real estate market has a strong presence in the list with Raleigh and Durham in third place and Charlotte coming behind in the ninth.
Why Invest in the North Carolina Real Estate Market?
1- Job Hub
Several companies in the biotech, energy, IT, and finance industries have their headquarters in North Carolina. Consequently, North Carolina enjoys a healthy job growth and low unemployment rates. As mentioned before, continuous job growth draws more tenants to an area and translates to a healthy market for real estate investments. Investing in the North Carolina housing market surely guarantees a consistent positive cash flow.
2- Affordable Housing
Given the continuous population growth in North Carolina at 1.14%, real estate development never ceases. This equilibrium between demand and supply helps in keeping the housing market affordable for real estate investors and homebuyers. Furthermore, entry prices for real estate investment properties in North Carolina remain affordable.
3- High Rental Demand
Search for qualified labor in cities like Charlotte, Durham, and Raleigh is intensifying. During the past five years, these cities have experienced strong net migration. Being able to attract new residents has had a positive impact on the North Carolina real estate market. With a strong population growth and a solid economy, the rental demand in North Carolina is continuously increasing. This means that if you invest in North Carolina housing, you would easily find tenants.
To check out the top neighborhoods to buy an investment property in Raleigh, read this!
How to Find the Best Properties in the North Carolina Real Estate Market
As a real estate investor, it is important to learn how to interpret real estate metrics. At Mashvisor, we are dedicated to providing you with everything you need to succeed in real estate investing. In our blog section, you can learn everything about investing in real estate, from tips on buying your first property to tips on how to finance real estate investments. Mashvisor’s gem is our own investment property calculator. This great tool allows you to evaluate real estate investment opportunities using predictive analytics.
Mashvisor’s investment property calculator will not just help you find rental properties in North Carolina, it will also recommend which rental strategy is more profitable, traditional vs Airbnb rentals. Furthermore, you can evaluate properties based on cash on cash return for both rental strategies and if you are looking for an Airbnb investment, the occupancy rate would tell you a lot about that investment.
Try it out for yourself! To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
Where to Invest in the North Carolina Real Estate Market
The following is a list of the top cities to invest in the North Carolina real estate market. The numbers and figures are taken from Mashvisor’s investment property calculator.
1- Durham, NC
Median property price: $357,605
Days on market: 76 days
Airbnb rental income: $2,036
Traditional rental income: $1,494
Airbnb cash on cash return: 2.35%
Traditional cash on cash return: 1.4%
Airbnb occupancy rate: 54.74%
2- Charlotte, NC
Median property price: $386,188
Days on market: 82 days
Airbnb rental income: $2,446
Traditional rental income: $1,471
Airbnb cash on cash return: 2.67%
Traditional cash on cash return: 1.14%
Airbnb occupancy rate: 54.66%
3- Raleigh, NC
Median property price: $430,131
Days on market: 80 days
Airbnb rental income: $2,675
Traditional rental income: $1,547
Airbnb cash on cash return: 3.94%
Traditional cash on cash return: 1.35%
Airbnb occupancy rate: 65.49%
The Bottom Line
PwC’s Emerging Trends in Real Estate report lists 3 North Carolina cities in the top 10 markets to watch for in 2019. This is a very good sign for a healthy real estate market. So, if you are wondering where to buy your next rental property, North Carolina is something to consider.
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