Amidst the vibrant landscape of Charlotte, the dream of owning a home is becoming increasingly elusive for individuals with modest incomes. The persistent surge in home prices presents a formidable challenge, even as the number of available housing units grows. This housing conundrum stems from a multitude of factors, as highlighted in the “2023 State of Housing in Charlotte Report” unveiled by UNC Charlotte’s Childress Klein Center for Real Estate on November 9.
“The Charlotte region has continued its rapid growth, accelerating post-COVID-19,” notes Yongqiang Chu, CKCRE director and principal author of the housing report. “This population surge has generated unwavering demand for housing, which, coupled with the enduring supply disruptions triggered by the pandemic, keeps the housing market under relentless pressure.”
Additionally, the Charlotte region is witnessing a transformation in the spectrum of house prices, with lower-end prices escalating more rapidly than their higher-end counterparts. Chu emphasizes the emergence of a noteworthy concern regarding middle-income housing affordability within the Charlotte region.
In September 2023, prospective homebuyers required a family income of $152,000 to acquire a median-priced residence, marking an escalation from the January 2022 median price of $376,000 to a staggering $415,000.
Now in its fifth year, the report draws from six primary data sources, providing an exhaustive analysis of the housing scene in the Charlotte region. Part of a comprehensive, multi-year endeavor led by Belk College of Business real estate faculty, this report serves as a foundational resource for discussions on housing policy within the Charlotte region. It assesses owner-occupied, rental, and subsidized housing across the eight counties of Mecklenburg, Cabarrus, Gaston, Iredell, Lincoln, and Union in North Carolina, and Lancaster and York in South Carolina.
Key takeaways from the report include:
- Affordable housing remains exceedingly scarce, with a mere 2.5% of homes selling for under $150,000 thus far in 2023, and only around 22% available for under $300,000. These statistics represent a deterioration compared to 2022.
- The affordability of middle-income housing is rapidly becoming a significant challenge in the Charlotte region, exacerbated by rising interest rates and home prices.
- After a temporary lull during the peak of the COVID-19 pandemic, house price growth resurged in 2023.
- The disruption to housing supply due to COVID-19 endures, with the Charlotte Metropolitan Statistical Area falling short by 10,000 housing units in 2022.
- The housing market remains fiercely competitive, with properties spending less than 10 days on the market.
- Rent growth has moderated considerably since the middle of 2022.
The 2023 research report also delves into a comprehensive review of the Charlotte region’s housing trends over the past two decades. The report’s release coincided with the 2023 State of Housing in Charlotte Summit, which featured an industry panel discussion focused on affordable housing.
CKCRE’s “State of Housing in Charlotte 2023” report received support from industry partners, including Faison, Canopy Realtor Association, and TrueHomes.