Our industry specialist has reviewed and approved the final article. Also, some of the data presented here have been integrated into the Charlotte real estate spreadsheet template.
Thinking of buying in Charlotte? Get our financial spreadsheet tailored to this specific market.
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
Thinking of buying in Charlotte?
We have a real estate spreadsheet fully tailored to this market. Get it now.
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
How much cash flow can you generate in Charlotte?
Get a clear view of your next investment, with all the metrics explained and reviewed accurately.
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) The "cash-on-cash return" of 4.0% for Airbnb in Charlotte is fairly appealing
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
Get our spreadsheet tailored to Charlotte!
Our tool covers everything: NOI, COC, Cap Rate, Gross Yield, Net Yield, LTV, ROI, and numerous other metrics and charts.
So, is it worth buying property in Charlotte? Absolutely!
Charlotte offers a compelling case for real estate investment, thanks to its vibrant cultural scene, strong economic growth, and beautiful green spaces. With a livability score of 80, the city promises an excellent quality of life, making it an attractive place for both residents and investors.
The low vacancy rate of 7.5% indicates a bustling and competitive market, ensuring strong demand for rental properties and potential for increased rental prices. This is further supported by a high employment rate of 69.7%, which reflects a stable economy and robust job availability, driving housing demand.
Major infrastructure projects like "The Pearl" and "The River District" are set to boost property values by 2026, while a steady population growth of 1.3% annually suggests long-term demand for housing. Additionally, a cash-on-cash return of 4.0% for Airbnb properties makes short-term rentals a viable investment option. All these factors combined make Charlotte a promising market for real estate investment.