For years, Charlotte has been considered of the best places to live in. That is why it’s worth considering investing in an Airbnb Charlotte NC.
Table of Contents
- Why Charlotte NC Has a Lot of Airbnbs
- Reasons to Invest in an Airbnb Charlotte NC Property
- Should You Start an Airbnb in Charlotte NC?
- Conclusion
Moreover, in 2020 and 2021, U.S. News & World Report rated Charlotte sixth out of the 125 greatest metro areas in the United States.
To understand why you should invest in Charlotte rental properties, consider why someone would choose to relocate to and reside in Charlotte, NC. To solve the question, we must investigate why Charlotte has been named one of the best places to live in, the finest qualities of the city and its surrounding areas, and a little bit about the living costs, median salary rates, and employment diversity measures.
Let’s take a closer look at what makes having an Airbnb in Charlotte NC appealing to investors.
Why Charlotte NC Has a Lot of Airbnbs
While Charlotte is not a prominent tourist spot, Charlotte NC Airbnb rentals are in high demand from weekend visitors and interns looking to stay for three to eight months. As a result, more people in the city are starting an Airbnb business, either as a secondary source of income or a full-time career.
We’ll cover a few topics on why Airbnb monthly rentals in Charlotte NC are in high demand and what makes the city so appealing for real estate investing.
Increase in Population
Charlotte is one of the country’s fastest-growing cities, second only to New York.
According to Fox 46’s report from 2021, the Charlotte metro region is gaining thousands of new citizens yearly. In addition, according to the most recent census, the city of Charlotte’s population expanded by about 20% over the last decade, more than double the state’s rate of growth.
Charlotte and Mecklenburg County have rated near the very top for population growth in the United States, with about 875,000 inhabitants in the City of Charlotte and over 2.5 million citizens in the metropolitan region.
A rapidly improving labor market and growing diversification are two reasons why so many people and organizations are relocating to Charlotte. Making it obvious why investing in Airbnb Charlotte would make absolute sense.
Lucrative Real Estate Market
When it comes to the real estate market, Charlotte is an appealing city for younger workers and their expanding families, with above-average public education, employment prospects, and affordable housing and living expenditures.
Charlotte’s housing market has a long tradition of being one of the country’s top long-term and short-term real estate investment places for homebuyers and investors. Moreover, according to the NC Realtors report from January 2022, the average house price is $365,100, with property prices increasing 25.7% yearly.
According to the most recent Airbnb data by Mashvisor, as of June 2022, the numbers and stats for North Carolina are as follows:
- Median Property Price: $540,852
- Average Price per Square Foot: $287
- Days on Market: 93
- Monthly Airbnb Rental Income: $2,896
- Airbnb Cash on Cash Return: 3.44%
- Airbnb Cap Rate: 3.53%
- Airbnb Daily Rate: $160
- Airbnb Occupancy Rate: 54%
- Walk Score: 45
And as for the City of Charlotte:
- Median Property Price: $562,498
- Average Price per Square Foot: $323
- Days on Market: 91
- Monthly Airbnb Rental Income: $2,497
- Airbnb Cash on Cash Return: 1.81%
- Airbnb Cap Rate: 1.85%
- Airbnb Daily Rate: $140
- Airbnb Occupancy Rate: 52%
- Walk Score: 36
Furthermore, the demand for property in Charlotte exceeds the supply, making the region a hot market for investors looking to remodel and flip or rent out. When it comes to Charlotte Airbnb, however, the expected return on investment is low.
A substantial increase in housing prices began in 2019 when demand grew and availability in the local market stayed low.
Using Mashvisor’s real estate heat map, users can glean which parts of the city would be more profitable to start an Airbnb Charlotte NC business.
Economic Prosperity
Charlotte is well-known as a commercial and financial center. It is home to the University of North Carolina Charlotte as well as several other institutions and public universities. So, with an average yearly family income of $94,516, the local population is very well educated.
Moreover, Charlotte’s population is expected to increase by nearly half between 2010 and 2030. In only twenty years, the population is predicted to grow from 1.87 million to over 2.74 million.
The cheaper cost of living in the South is one of the primary reasons for this rapidly growing population. In addition, Charlotte’s cost of living is around 5% cheaper than the national average. And with these stats in mind, it sounds logical that investing in an Airbnb North Carolina would be a smart move.
What is more, a report released in June 2021 rated Charlotte as one of the greatest cities in the country for employment and pay growth. Another study listed Charlotte as one of the top places to start a career after graduation based on employment variety and quality-of-life options.
Last but not least, after New York City, Charlotte is the second-largest financial area in the United States. Bank of America and Trust Financial have regional headquarters there, and Wells Fargo employs 26,000 people in the city.
Reasons to Invest in an Airbnb Charlotte NC Property
Many investors purchase cheap apartments in Charlotte NC because the area provides exceptional chances for successful investments. Charlotte is a job powerhouse, which explains its constant population expansion. It also has many interesting attractions.
Moreover, Charlotte is rated sixth in the United States for the lowest cost of living compared to income, owing to the rise of technology firms and cheap cost of living. It also expects a 25% growth rate in professional and technical services from 2015 to 2025.
Here are three compelling reasons to purchase an investment property, preferably a luxury Airbnb in Charlotte NC.
1. Booming Tourism Industry
Apart from traditional rentals, North Carolina Airbnb rental homes are also in high demand. Because the city’s tourist business is thriving, investors also purchase investment homes for holiday rentals.
Charlotte is known for its beautiful historical buildings and exquisite food. In addition, it is also a popular destination for travelers interested in outdoor activities like whitewater rafting, off-road biking, and nature walks.
2. Higher Price to Rent Ratio
According to the Mashvisor June real estate market statistics, Charlotte’s price to rent ratio is 23, which is reasonably high. A high price to rent ratio indicates that purchasing a property is much more expensive than renting one.
So what does that mean for investors? Well, it indicates that residents who can’t afford to purchase a home will rent instead, creating more business chances for investors who want to acquire Charlotte rental properties.
Bonus: here is a guide with tips and tricks on how to invest in real estate.
3. Rules and Regulations for Airbnb
Running an Airbnb business is legal in Charlotte, North Carolina. If a long-term or short-term rental property in Charlotte City meets its specified disorder risk criteria, you can register it with the Charlotte-Mecklenburg Police Department.
You must also follow the zoning rules, acquire a business license, and remit sales tax and room occupancy tax.
Please take notice of any other terms or restrictions you must follow before investing in Charlotte rental houses for Airbnb. Leases, condominium board rules, HOA rules, and tenant organization regulations are examples of rules. To avoid unnecessary complications in the future, ensure that you understand and follow the mentioned norms and regulations.
Should You Start an Airbnb in Charlotte NC?
Unique Airbnb investments in Charlotte are more rewarding than traditional ones, according to our Charlotte real estate market stats. The city’s booming economy and various tourist attractions draw many visitors and new citizens each year, increasing demand for Airbnb Charlotte rental accommodations. But since the estimated Airbnb cash on cash return in the city is less than 2%, you might want to consider investing in neighboring cities.
Here are our top five cities near Charlotte that are worth considering for an investment opportunity.
5 Cities Near Charlotte That Are Lucrative for Airbnb
Charlotte is bordered by some of the top cities in the country. Furthermore, most of these cities are historic and share features with Charlotte due to recent developments. Here’s a list of the five lucrative cities based on Mashvisor’s June 2022 data, sorted from highest to lowest Airbnb cash on cash return.
1. Mount Holly
- Median Property Price: $385,239
- Average Price per Square Foot: $192
- Days on Market: 34
- Monthly Airbnb Rental Income: $3,057
- Airbnb Cash on Cash Return: 6.06%
- Airbnb Cap Rate: 6.24%
- Airbnb Daily Rate: $133
- Airbnb Occupancy Rate: 66%
- Walk Score: 51
Staying in Mount Holly gives individuals plenty of room. After all, it is sparsely populated, providing a suburban atmosphere because most residents are homeowners. The city has a variety of parks, making it a popular tourist destination in North Carolina.
2. Gastonia
- Median Property Price: $302,446
- Average Price per Square Foot: $186
- Days on Market: 50
- Monthly Airbnb Rental Income: $2,653
- Airbnb Cash on Cash Return: 5.91%
- Airbnb Cap Rate: 6.11%
- Airbnb Daily Rate: $115
- Airbnb Occupancy Rate: 65%
- Walk Score: 59
The city of Gastonia is distinguished by a moderate climate and a plethora of natural resources that provide people with an abundance of outdoor activities. It also has various tourist spots, such as Crowder Mountain State Park, which covers over 3,000 acres and is the city’s largest natural historical monument.
3. Mint Hill
- Median Property Price: $547,546
- Average Price per Square Foot: $226
- Days on Market: 55
- Monthly Airbnb Rental Income: $5,596
- Airbnb Cash on Cash Return: 5.77%
- Airbnb Cap Rate: 5.84%
- Airbnb Daily Rate: $219
- Airbnb Occupancy Rate: 64%
- Walk Score: 57
Mint Hill is a location where people gather to enjoy the delicacy of handcrafted desserts while spending time with their loved ones. The city also has a rich history and culture that people come to discover while having fun.
4. Cornelius
- Median Property Price: $850,432
- Average Price per Square Foot: $339
- Days on Market: 118
- Monthly Airbnb Rental Income: $3,762
- Airbnb Cash on Cash Return: 5.03%
- Airbnb Cap Rate: 5.15%
- Airbnb Daily Rate: $290
- Airbnb Occupancy Rate: 68%
- Walk Score: 58
Cornelius is one of the best places for water activities thanks to its lake, with travelers being able to rent paddle boards, jet skis, and even boats. The city also offers other distinctive attractions, lakefront parks, waterfront bars, and shopping. It has several parks, including Bailey Road Park, Ramsey Creek Park, and Robbins Park, which are popular tourist destinations.
5. Indian Trail
- Median Property Price: $453,394
- Average Price per Square Foot: $212
- Days on Market: 78
- Monthly Airbnb Rental Income: $3,245
- Airbnb Cash on Cash Return: 3.51%
- Airbnb Cap Rate: 3.57%
- Airbnb Daily Rate: $210
- Airbnb Occupancy Rate: 44%
- Walk Score: 38
The city of Indian Trail hosts a variety of activities, including concerts, fairs, parades, and gatherings in Crooked Creek Parks, Crossing Paths, and Chestnut Square. It also features a variety of parks that offer a wide range of outdoor activities such as playgrounds, dog parks, fitness programs, walking trails, environmental education workshops, and a healthy atmosphere to enjoy.
Conclusion
Charlotte will quickly capture your interest if you’re searching for an attractive, high-energy southern town with plenty to offer its citizens and visitors. The city has achieved extraordinary growth over the last decade and is ready to continue with the tradition in the following years.
For the same reasons why people seek to live there, the Charlotte real estate market is drawing investors from all over the country, including yours. That is why investing in an Airbnb Charlotte NC sounds like a wise option to consider in your real estate business.
Moreover, you may find lucrative real estate options here, whether you choose traditional long-term or best Airbnb short-term rentals. In fact, you can locate these investment possibilities fast and easily by using the tools that Mashvisor offers.
To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.