2024 Real Estate Trends

North Carolina, now home to over 10.6 million people, has become a significant player in the national housing scene, reflecting substantial growth and an evolving economic landscape.

North Carolina’s population growth is more than just numbers; it’s a testament to its allure. Between July 1, 2021, and July 1, 2022, the population swelled by 133,000, a 1.3% increase that surpassed the decade’s average annual change of 1.0%.

This rapid growth positions North Carolina among the top states in the nation for population increase, trailing only behind Texas and Florida.

Influx from Neighboring States

North Carolina experienced a significant demographic shift between 2010 and 2020, with approximately 904,000 new residents arriving through domestic migration, mainly from neighboring and distant states. This influx has dramatically influenced the state’s housing market, increasing demand and property values and rents substantially. Notably:

• Primary Places of Migration: Most of these new residents came from Virginia, South Carolina, Georgia, New York, and Florida.
• Impact on Housing Market: The state saw a dramatic increase in housing demand, with Zillow reporting a surge in housing prices by over 70% in the last five years.

Economic and Employment Indicators

2022 marked a milestone year for North Carolina’s economy with the addition of 28,690 new jobs, surpassing 2021’s figures and generating an impressive $19.3 billion in capital investment.

In April 2023, the state’s unemployment rate dipped to 3.4%, reflecting a robust job market with significant growth in sectors like Leisure & Hospitality and Education & Health Services. The Department of Commerce projects an addition of 445,000 new jobs between 2021 and 2030, further bolstering the state’s economic vitality.

Real Estate Development and Construction Trends

In 2022, despite the headwinds of rising interest rates, the demand for construction workers in North Carolina remained high. Homebuilders have strategically navigated these challenges, offering deals and incentives to maintain market momentum.

By April 2023, the median sale price had increased by 2.5% year-on-year, a sign of the market’s resilience despite a 23.2% decrease in home sales.

Government Efforts to Improve Housing Affordability

The state is actively tackling issues like restrictive zoning to promote residential home growth.

For instance, a Cato Institute study highlighted the disparity between population growth and housing construction, particularly in areas like Greensboro. Proposed legislation, such as the “deannexing” of properties in Summerfield, aims to address these challenges and foster housing supply growth.

Queen City Reigns Above All Markets

In the context of North Carolina’s expanding real estate market, Charlotte, NC, distinguishes itself with unique characteristics that align with statewide trends while also offering exceptional investment prospects.

Key aspects of Charlotte’s housing market include:

• Rapid Population Growth: Charlotte’s population has been growing consistently, reflecting the broader trend seen across North Carolina. This surge has been fueled by factors such as job opportunities in the city and its appeal as a residential and business hub.
• Economic Strength: Charlotte’s economy is robust, marked by a diverse array of industries, including finance, technology, and healthcare. This economic diversity attracts a workforce from various sectors, further bolstering the housing demand.
• Rising Home Prices: Mirroring the state’s trend, Charlotte has seen a significant increase in home prices. This is partly due to the influx of new residents and limited housing supply, making the city an attractive market for investors looking for appreciating assets.
• Active Real Estate Development: The city is experiencing active real estate development, with new residential projects and commercial investments. This development is a response to the growing demand for housing and retail space, offering various opportunities for real estate investors.
• High Rental Demand: With its growing population and economic opportunities, Charlotte experiences high rental demand, especially in areas close to employment centers and urban amenities. This makes the city an attractive market for rental property investments.
• Market Resilience: Despite economic fluctuations and challenges like rising interest rates, Charlotte’s housing market has demonstrated resilience, maintaining steady growth and attracting continuous investment.

These factors collectively position Charlotte as a prime destination for real estate investment, reflecting the strength and potential of North Carolina’s broader market while offering unique opportunities due to its specific market dynamics.

Ready To Start Investing?

The future of North Carolina’s real estate market is ripe with potential, marked by its growing population, flourishing economy, resilient construction sector, and proactive government policies. At Henderson Investment Group, we are dedicated to guiding our clients through the nuances of this market, offering tailored insights and strategies.

Whether your interest lies in the bustling streets of Charlotte or the broader expanses of North Carolina, our expertise is your asset in capitalizing on the state’s real estate opportunities. Join us in exploring the promising avenues of North Carolina’s real estate market. Sign-up now!