Cost of Living in North Carolina: Housing Rent Increases in Charlotte, Raleigh, and Cleveland-Ohio

North Carolina, Charlotte – For someone thinking of moving to North Carolina, the first thing to consider is the cost of buying and renting a home, which has seen a steady increase in recent years, with cities like Raleigh and Charlotte among those that have seen the largest price increases in the past year.

According to a report As reported in April by the real estate company Redfin, Raleigh (16.6%), Cleveland-Ohio (15.3%), and Charlotte (13%), are the cities that have seen the largest increases in the cost of housing rent, among 10 of the largest cities in the country.

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Factors that have led to the increase in rental housing

Jennifer Bowers, a Redfin real estate agent, said three factors have led to rising rents in these cities: investors, high home prices, and a strong local market.

“Tons of investors have bought houses and rented them out during the pandemic to take advantage of low mortgage rates and rising rental demand, which allowed them to raise rents. While investors have since reined in purchases, they have not cut rents,” Bowers said.

Bowers said rental demand has increased in part because housing prices have skyrocketed and pushed homeownership out of reach for many families.

“High mortgage rates over the past year and a half have also kept buyers out of price,” the official noted.

A 2022 investigation by the Charlotte Observer and The News & Observer documented that the Charlotte area had become a national hub for investors who buy homes and then rent them.

In turn, in July the Observer revealed what it called a “tsunami” of construction of 20,000 apartment units in Charlotte on behalf of investors.

Mortgage Rate Increase

As of April, Redfin explained, the average 30-year fixed mortgage rate is now 6.27%, down from the fall high of 7.08%, but above 5% in April 2022, which has made homebuyer’s typical monthly payment to increase by nearly $300 over the prior year.

While home prices have started to fall year on year, they are still 30% higher than when the pandemic began.

In March, Charlotte’s median home rental request was $1,969, with a year-over-year (yoy) change of 13%, while Raleigh’s median home rental request was $2,080, with a yoy. of 16.6%.

The entity pointed out that the short-term rental market is in a similar situation.

What causes inflation in the temporary rental market

Redfin found that the Airbnb market is oversaturated with supply and authorities are imposing stricter restrictions on hosts in some areas, prompting some landlords to lower rents or sell, according to Redfin agents.

The rental market in general is also cooling off as still high rental costs, inflation, rising unemployment and recession fears are causing rental demand to decline.

Rental vacancies are on the rise, leading some landlords to lower rents and/or offer concessions like discounted parking.

While Raleigh and Charlotte see the rise in the cost of rent, large cities like Austin-Texas (-11%), Chicago-Illinois (-9.2%), and New Orleans-Louisiana (-3%), have seen a decrease.

As the price of housing purchases increases, the number of houses sold falls

Regarding the cost price of housing, it increased 2.6% in the state for the month of April, compared to 2022. At the same time, the number of houses sold fell 23.4%, as well as the number of houses for sale decreased 3.5%. .

according to another report According to the Redfin real estate company, in April of this year home prices in North Carolina increased 2.6% compared to last year, and sold for a median price of $361,300.

On average, the number of homes sold decreased 23.4% year-over-year and there were 12,181 homes sold in April this year, 15,895 fewer homes sold than April last year. The average number of days for homes on the market was 36 days, 10 days more than the previous year.

10 NC Cities With Fastest Rising Sales Price

According to Redfin, 10 North Carolina cities have the fastest rising home sales price:

1-Hope Mills: average sales price (ppv) $283,470 (+39.3% compared to the previous year).

2-Reidsville: $199,990 (+37.9 %)

3-St. James: $675,000 (+29.8 %)

4.Mount Airy: $222,500 (+31.7 %)

5.Stallings: $502,550 (+23.1 %)

6.New Bern: $329,990 (+22.2 %)

7.Chapel Hill: $674,415 (+21.5 %)

8.Sandford: $320,000 (+17.6 %)

9.Jacksonville: $206,400 (+18.6 %)

10. Asheboro: $235,000 (+21.1%)

Are there enough homes for sale to meet buyer demand?

Redfin indicates that in April 2023 there were 38,180 homes for sale in North Carolina, 3.5% less than the previous year.

While the number of new listed homes was 13,746, 26.2% less year after year. Average months supply is 2 months, up to 0 yoy.

How competitive is the real estate market in the state?

Redfin indicated that, in April, 30.8% of homes in North Carolina sold below list price, down 27.0 points year-over-year. There were only 19.5% of homes that had price drops, compared to 11.0% of homes in April of last year. There was a list sale price of 99.2%, which shows a drop of 3.5 “yoy” points.

The 10 Most Competitive Cities for North Carolina Home Sales

Redfin selected the 10 most competitive cities in North Carolina on a scale of 0 to 100, where the most homes get multiple offers often with contingencies waived:

1-Murraysville: with an average sales price (ppv) of $345,000 (+11% increase compared to the previous year)

2-Fayeteville: $220,000 (+17.3 %)

3-Jacksonville: $206,400 (+18.6 %)

4-Silver Lake: $489,000 (+48.5 %)

5-Half Moon: $207,000 (+3.8 %)

6-Greenville> $248,250 (+3.8 %)

7-Havelock: $206,000 (+12.2 %)

8-Spout Springs: $328,000 (+4.3 %)

9-Moyock: $390,000 (-3.9 %)

10-Wilson> $220,000 (+10.0 %)

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