Where Investors Are Looking to Buy in the East

Charlotte is the largest metropolitan area in the state of North Carolina, with nearly double the population of Raleigh and growing. In fact, around 150 people are moving to Charlotte every day. The median age in Charlotte is 34, as it has become a great city for young professionals.

The population and culture around Charlotte is diverse because 17% of residents were born outside of the U.S. The metro area is unique because it’s relatively close to a lot of popular destinations. For the adventurers, Charlotte is just 90 minutes from the beautiful mountains of Asheville. For the beach vacationers, the city is about a three-hour drive to Myrtle Beach. Washington, D.C., Atlanta, and Charleston, South Carolina, are also all within driving distance—approximately five hours away.

Because Charlotte is located further from the coast, it’s more protected from hurricanes and severe storms than other North Carolina cities. Temperatures vary year-round but generally stay fairly mild with a nice mix of seasons. However, Charlotte is prone to tornadoes coming through the area, as well as flooding. When buying property, it’s best to make sure it’s not in a flood zone.

What’s bringing so many young professionals to the Charlotte area? It’s pretty simple: plenty of job opportunities, above-average household incomes, a low cost of living, low taxes, and a great place for single people to meet each other (55% of Charlotte’s population is single).

How COVID-19 Has Impacted Charlotte

As the coronavirus relentlessly spreads across the nation, many American’s have been hit hard financially. Like most of the country, Charlotte’s job market and economy have been impacted by the pandemic. The biggest job losses came in June when Charlotte’s unemployment rate reached 8.2%. The national unemployment rate at the time was 11.2%. As of October, Charlotte’s unemployment rate is 7.2%, below the national average of 8.5%.

The good news is that employers in North Carolina are still hiring and jobs are slowly coming back. Whether that trend continues across the country is largely dependent on how the pandemic plays out in the coming months.

Why Invest in Charlotte

Charlotte’s Population Is Growing Like Crazy

Charlotte has a population of approximately 2.6 million people. The area has seen a 17% rise in population over the last decade, which is 181% faster than the national average. The population of Charlotte is growing at a rate of 1.7%—nearly three times the national average. About 150 people move there every day.

Millennials are also moving to North Carolina in huge numbers. In fact, 70% of people moving to North Carolina are choosing to settle in or around Charlotte. Charlotte also came in at No. 5 for cities where millennials are moving in 2020. There are a variety of reasons for this growth, including a lower cost of living and jobs which will discuss more below. One thing to note is that a new study recently named the Queen City as the No. 1 metro for job growth in STEM fields. It’s no wonder why Charlotte is attracting college students and millennials looking for good jobs and even better lifestyles.

The entire Charlotte metropolitan area has significant demand for housing, due mostly to a lack of inventory. A quickly growing population coupled with a lack of affordable housing may offer opportunities for both buy and hold real estate investors and flippers.

Charlotte Has Jobs

Charlotte is an explosive primary market with a diverse economy. On average, Charlotte is adding twice as many jobs as the rest of the country. The biggest industries include technology, finance, and healthcare. The average household income for the Charlotte MSA is around $60,000 and the total GDP is over $170 million.

North Carolina is a business and landlord-friendly state. It’s a right-to-work state and has six Fortune 500 companies in or around the city. Charlotte is No. 2 in the banking industry, only behind New York City. The Charlotte-Douglas International Airport is the sixth largest airport in the U.S. as far as the number of flights going in and out.

The largest employers in and around Charlotte include:

Bank of America
Wells Fargo East Coast HQ
Lowe’s
Brighthouse Financial
Atrium Health
Duke Energy
Novant Health

Charlotte Is Affordable

Average single-family homes in the Charlotte metro are $250,711—below the national average of $259,906. In the last year, home values in Charlotte have gone up a whopping 9.1%. Zillow predicts that the cost of homes will go up 7.7% over the next 12 months.

Almost 47% of people in Charlotte are renters. Median monthly rents for a single-family home in Charlotte are around $1,600. There is a serious affordable housing shortage, which is causing the majority of tenants to spend more than 30% of their income on rent.

It’s possible to find affordability, population, and job growth in Charlotte. The question is whether you can find investment properties for sale. If you can, there are areas just outside of Charlotte with potential for even better appreciation than in the city.

The Fastest-Growing Neighborhoods in Charlotte, NC

Wildwood
Madison Park
Elizabeth
Plaza Midwood
Dilworth

The Fastest-Growing Neighborhoods in the Charlotte Metro Area

Tega Cay, SC
Waxhaw, NC
Fort Mill, SC

At my company, we have found the best success in finding good long-term rentals by partnering with builders in Charlotte and reserving 10% of their inventory for our members. Since lumber costs have skyrocketed, we were pleased to find a builder that uses steel instead. Surprisingly, these steel built homes cost less than stick-built. It’s all about supply and demand.

If you’re interested in learning about other markets around the country, BPInsights offers more information.

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Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.