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Thinking about investing in real estate in Charlotte in 2025? You're on the right track.
Charlotte's real estate market is showing promising signs, with steady growth and strong demand making it a solid investment choice.
In this blog post, we will explore why Charlotte remains a top pick for real estate investors.
We rely on reliable data and statistics from trusted sources to provide a comprehensive analysis.
By the end, we will share our own conclusions based on this thorough examination. Enjoy the read!
How this content was produced 🔎📝
This article offers thoughtful insights and analysis based on reliable sources, but it should not be considered financial advice. We work hard to research, compile, and analyze data to give you a well-informed perspective. However, as you can guess, our analysis involves subjective choices, such as source selection and methods, and it cannot fully capture the market's complexity. Please, always do your own research, consult professionals, and make decisions based on your own judgment. Any financial risks or losses are your responsibility. Additionally, you should know that we have no affiliation with the sources mentioned, ensuring our analysis is completely impartial.
1) Charlotte boasts an impressive livability score of 80, highlighting its excellent quality of life
Signal strength: strong
The livability score of 80 in Charlotte is considered excellent because it reflects a high quality of life in the area.
One reason for this high score is the vibrant cultural scene, which includes a variety of museums, theaters, and music venues that attract both residents and tourists. Additionally, Charlotte boasts strong economic growth, with numerous job opportunities in sectors like finance and technology, making it an attractive place for professionals. The city also offers beautiful green spaces, such as parks and trails, which enhance the overall living experience for families and individuals alike.
These factors contribute to the assumption that buying property in Charlotte is a good investment, as they indicate a thriving community with potential for appreciation. When a city has a high livability score, it often means that property values are likely to increase over time, providing a solid return on investment.
However, if the livability score were to drop below 70, it might suggest underlying issues that could affect property values negatively.
Source: AreaVibes
2) Charlotte's "vacancy rate" is just 7.5%, showing it's a bustling and competitive market
Signal strength: strong
The vacancy rate in Charlotte is 7.5%, which is considered very low. This low vacancy rate indicates that the market is highly occupied and competitive, meaning there is strong demand for rental properties.
When demand is high, it often leads to increased rental prices, which can provide a good return on investment for property owners. In Charlotte, modern apartments in Uptown are particularly popular and tend to be rented out quickly.
These properties are often in excellent condition and offer amenities that attract tenants looking for convenience and lifestyle. Investing in such properties can be a smart move, as they are easily rented and maintain high occupancy.
If the vacancy rate were to rise above 10%, it might indicate a less favorable market for property investment.
Sources: NeighborhoodScout, DataUSA, USCensus
We created this infographic to show how property prices in Charlotte compare to other big cities in North Carolina. It shows the median price as well as the price per sqft, making it easy to see which places might offer the best value. We hope you find it helpful.
3) Charlotte boasts a strong employment rate of 69.7%, indicating robust job availability
Signal strength: moderate
The employment rate in Charlotte is at 69.7%, which is considered high compared to many other regions in the United States.
This high employment rate indicates a strong and stable economy, which is a positive sign for potential real estate investors. When more people are employed, they have the financial means to buy or rent properties, driving demand in the housing market.
Charlotte's major employment sectors include finance, healthcare, and manufacturing, which are robust and diverse industries. Companies like Bank of America and Wells Fargo employ a significant number of people in the area, contributing to the city's economic health.
If the employment rate were to drop below 60%, it might indicate economic challenges that could affect the real estate market negatively.
4) Charlotte's key projects, "The Pearl" and "The River District," are expected to increase property values by 2026
Signal strength: moderate
Charlotte's major infrastructure projects, such as The Pearl and The River District, are poised to significantly enhance real estate values by 2026.
The Pearl, a mixed-use development in Plaza Midwood, will feature a 14-story campus building and a 10-story research facility, alongside amenities like a senior affordable housing building and a park. These additions are expected to transform the neighborhood, making it more attractive to potential buyers and investors.
The River District, a vast 1,400-acre community in west Charlotte, will offer 8 million square feet of office space, 5,000 homes and apartments, and extensive retail and hotel options. This development is set to create a vibrant, self-sustaining community, drawing in residents and businesses alike.
Projects like The Pass and the Cross Charlotte Trail further enhance the city's appeal. The Pass will provide a walkable environment with apartments and office space, while the Cross Charlotte Trail will improve connectivity across the city. These initiatives are likely to boost property demand in their respective areas.
Additionally, the Northeast Corridor Infrastructure project aims to improve access to the CATS Blue Line Extension, enhancing transportation options and potentially increasing property values in nearby neighborhoods.
Sources: City of Charlotte, Axios Charlotte
Our team designed this infographic to show how competitive the real estate market in Charlotte is vs. other major cities in North Carolina. It shows the percentage of sales above the list price, a key indicator of market competition.
5) Charlotte, North Carolina, is experiencing a yearly population increase of 1.3%
Signal strength: moderate
Charlotte, North Carolina, is experiencing a steady population growth at an annual rate of 1.3%, which is a positive indicator for real estate investment.
This growth is driven by the city's economic appeal and diverse job opportunities, attracting people from various regions. As more individuals move to Charlotte, the demand for housing increases, potentially leading to a rise in property values.
The city's lower cost of living compared to other major metropolitan areas makes it an attractive destination for newcomers, further fueling population growth. This influx of residents can create a robust rental market, offering opportunities for property investors to generate rental income.
Charlotte's forecasted population increase, with the metropolitan area expected to reach nearly 3 million by 2030, suggests a long-term demand for housing. This sustained growth can lead to appreciation in property values, making real estate a potentially lucrative investment.
Additionally, the region's economic engine, including job growth and major headquarters relocations, supports a thriving local economy. A strong economy often correlates with a healthy real estate market, providing stability and growth potential for property investments.
Sources: Nch Stats, LawnStarter, Charlotte Region, World Population Review, Aterio
6) Airbnb or "short-term rental" in Charlotte offers a decent 4.0% return, making it a fairly appealing investment
Signal strength: moderate
The cash-on-cash return on Airbnb in Charlotte is 4.0%, which is considered moderately attractive for investors looking at short-term rental properties.
This percentage indicates that investors can expect a reasonable return on their initial cash investment, making it a potentially good opportunity. Charlotte attracts a variety of short-term tenants, including business travelers attending conferences and events, as well as tourists exploring the city's cultural and historical sites.
Additionally, families visiting students at local universities and sports fans attending games are common renters. These diverse groups contribute to a steady demand for short-term rentals, which can help maintain occupancy rates and support consistent rental income.
However, if the cash-on-cash return were to drop below 3.0%, it might suggest a less favorable investment scenario, potentially indicating higher risks or lower profitability.
Source: Mashvisor
This infographic we have made will show you how market values have changed during the last decade in Charlotte vs other major places in North Carolina. Here, the percentage increase or decrease in market value will help you see long-term trends.
So, is it a good time to invest in Charlotte real estate in 2025? Absolutely, it is.
Investing in real estate in Charlotte in 2025 is a solid option due to several compelling factors.
First, the city boasts an impressive livability score of 80, indicating a high quality of life that attracts residents and boosts property values. With a low vacancy rate of 7.5%, the market is competitive, ensuring strong demand for rental properties and potential for increased rental prices.
Charlotte's employment rate of 69.7% reflects a robust economy, providing financial stability for residents and driving housing demand. Major projects like The Pearl and The River District are set to enhance property values by 2026, making now a strategic time to invest.
Additionally, the city's population growth of 1.3% annually suggests a sustained demand for housing, further supporting property appreciation. The cash-on-cash return of 4.0% for Airbnb properties offers an appealing opportunity for investors in the short-term rental market.
Related analyses:
- Here is why prices are going to climb in 2025 in Charlotte