Is Charlotte the new hot spot in the North Carolina real estate market? That’s what it’s looking like; the largest city in North Carolina seems to be holding some great investment opportunities. The Charlotte housing market is a solid bet for real estate investors no matter the strategy they choose to follow (fix and flip, buy and hold to rent using a multi-family or single family home). This blog, however, will be focusing on the return on investment you can get with Charlotte rental properties in 2019.
Charlotte Real Estate Market Trends
To determine whether or not a certain market is good for real estate investment, you need to study it. Researching ROI rates alone isn’t enough; you need to analyze the market as a whole. There are many factors making investing in the Charlotte housing market a smart move- here are the main ones:
Population Growth
Charlotte, NC is one of the country’s fastest-growing metros. It’s actually the largest metropolitan area between Atlanta and Washington D.C. It has an increase in population by about 100,000 people every year. Charlotte has a projected 23.7 percent population increase from 2014-2025. The low cost of living and increasing job opportunities are definitely incentives for moving there. Economic stability plays a big role in the success of a real estate market. So, as long as people have a reason to live in this city, property investors can be confident in the Charlotte housing market.
Landlord Friendly
If you’re a Charlotte real estate investor taking on the role of landlord, you’ll be happy to know that North Carolina is a landlord friendly state. There is no rent control or rent regulation, and there are laws set in place to ensure a smooth eviction process if necessary. Investors don’t need to worry about bad tenants and late rent payments tanking their Charlotte real estate investment’s profits; the state’s got your back.
No Airbnb Regulations
With cities across the country tightening Airbnb regulations, it makes sense to wonder, “Is Airbnb legal in Charlotte?” Airbnb Charlotte investors can rest assured; there are currently no regulations guiding the operation of short-term rentals. While other cities like Asheville and Wilmington have adopted some Airbnb regulations, you won’t need to worry about that with an investment in the Charlotte housing market. However, it’s best for real estate investors to always stay alert to any new regulations or ordinances being passed regarding short term rental properties in your city.
Home Values
The median home value in the Charlotte housing market is currently $225,000, according to Zillow. Charlotte home values have increased by 8.6 percent in the past year and are expected to go up another 6.1 percent within the next year. This is a good sign that your Charlotte investment property will maintain it’s value with time.
If you want to start searching for Charlotte homes for sale, you can do so with our Property Finder. All you need is a free account with Mashvisor to begin your quick search for a lucrative investment property in the Charlotte housing market.
Where to Invest in the Charlotte Housing Market
Mashvisor’s investment property calculator has analyzed the performance of rental properties (both long term and short term) in the Charlotte housing market. Calculating key return on investment metrics on both the city level and neighborhood level, we have assembled a list of exactly where to invest in the Charlotte housing market for profitability. To get more use out of Mashvisor’s real estate investment tools, apply them to your personal investments and take advantage of our accurate and reliable data.
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First, we’ll give you a quick summary of how rental property investments are performing city-wide in the Charlotte real estate market:
- Median Property Price: $396,472
- Price per Square Foot: $192
- Average Days on Market: 84
- Price to Rent Ratio: 22
- Monthly Traditional Rental Income: $1,475
- Traditional Cash on Cash Return: 1%
- Monthly Airbnb Rental Income: $2,426
- Airbnb Cash on Cash Return: 3%
- Airbnb Occupancy Rate: 50%
Now, to get a better understanding of the Charlotte housing market, let’s take a look at our data for the top-performing neighborhoods.
Best Neighborhoods in Charlotte for Real Estate Investing
Oakview Terrace
- Median Property Price: $75,000
- Price per Square Foot: $77
- Average Days on Market: 41
- Price to Rent Ratio: 9
- Monthly Traditional Rental Income: $730
- Traditional Cash on Cash Return: 3%
- Monthly Airbnb Rental Income: $2,156
- Airbnb Cash on Cash Return: 15%
- Airbnb Occupancy Rate: 35%
Brandon Forest
- Median Property Price: $183,100
- Price per Square Foot: $144
- Average Days on Market: 19
- Price to Rent Ratio: 12
- Monthly Traditional Rental Income: $1,285
- Traditional Cash on Cash Return: 4%
- Monthly Airbnb Rental Income: $3,146
- Airbnb Cash on Cash Return: 15%
- Airbnb Occupancy Rate: 53%
Oaklawn
- Median Property Price: $194,750
- Price per Square Foot: $129
- Average Days on Market: 53
- Price to Rent Ratio: 5
- Monthly Traditional Rental Income: $2,967
- Traditional Cash on Cash Return: 12%
- Monthly Airbnb Rental Income: $3,177
- Airbnb Cash on Cash Return: 11%
- Airbnb Occupancy Rate: 47%
Druid Hills South
- Median Property Price: $150,000
- Price per Square Foot: $105
- Average Days on Market: 6
- Price to Rent Ratio: 10
- Monthly Traditional Rental Income: $1,280
- Traditional Cash on Cash Return: 4%
- Monthly Airbnb Rental Income: $2,337
- Airbnb Cash on Cash Return: 8%
- Airbnb Occupancy Rate: 52%
Rockwell Park- Hemphill Heights
- Median Property Price: $168,380
- Price per Square Foot: $108
- Average Days on Market: 61
- Price to Rent Ratio: 12
- Monthly Traditional Rental Income: $1,154
- Traditional Cash on Cash Return: 2%
- Monthly Airbnb Rental Income: $2,688
- Airbnb Cash on Cash Return: 8%
- Airbnb Occupancy Rate: 57%
Toddville Road
- Median Property Price: $173,360
- Price per Square Foot: $112
- Average Days on Market: 84
- Price to Rent Ratio: 13
- Monthly Traditional Rental Income: $1,114
- Traditional Cash on Cash Return: 2%
- Monthly Airbnb Rental Income: $2,588
- Airbnb Cash on Cash Return: 7%
- Airbnb Occupancy Rate: 61%
Investing in the Charlotte housing market is definitely a good idea for 2019. Whether you’re going for traditional long-term rentals or Airbnb short-term rentals, it’ll be a profitable investment if done right. You’ll be sure to make the most out of this opportunity by using Mashvisor’s services. To learn more about how we will help you make faster and smarter real estate investment decisions, click here.