What’s next for Charlotte’s housing market?

What’s next for Charlotte’s housing market?

2023-02-15T12:31:04-05:00February 15th, 2023|Charlotte, Economy, Residential Real Estate|

Writer:  Steven Dominguez

2 min read February 2023Charlotte’s residential real estate industry has been on an upward trajectory over the past few years, and while 2023 is projected to continue along this path, there are still lingering affordability and availability challenges that the market is contending with. 

The city topped Zillow’s annual predictions for the “Hottest Real Estate Market for 2023”. Although this is positive news for the overall housing market in Charlotte, which looks to remain strong, it also poses several challenges. One of the biggest challenges continues to be affordability, and with mortgage rate prices continuing to rise, many potential buyers are finding it increasingly difficult to purchase property in the market. According to the 2022 State of Housing Report in Charlotte, the median home prices in the Charlotte market increased from $273,500 in Jan. 2020 to $420,000 in Sep. 2022. 

The shortage of affordable housing is particularly difficult, with many struggling to find suitable housing options. A more recent study titled Housing Underproduction in the U.S., conducted by Mike Kingsella’s Up for Growth, revealed that North Carolina’s housing deficit increased by 275% between 2012 and 2019, with a shortage of over 46,165 homes. Charlotte alone was lacking nearly 21,162 homes.

“Even with the level of production you’re seeing in Charlotte, it’s not keeping pace with those drivers of housing needs,” explained Kingsella. 

While access to attainable and affordable housing remains an issue, the city,  in partnership with DreamKey Partners, is launching a new pilot program called House Charlotte Plus. This program will offer up to $80,000 in assistance if a homeowner buys a home in one of six identified areas. These six ‘Corridors of Opportunity’ in the city are defined communities that can thrive and grow with some extra attention and investments. On that list are Graham Street/North Tryon Street, Sugar Creek Road, Albemarle Road/Central Ave, Beatties Ford Road West Boulevard, and Freedom Drive. “House Charlotte Plus is another way the city is investing in its corridors, providing homeownership opportunities for hard-working families, and improving social mobility for its residents,” said Warren Wooten, assistant director for affordable housing at the City of Charlotte.

As the market continues to fluctuate in Charlotte, its residents will have to decide between the age-old adage realtors everywhere have suggested, to “date the rate, but marry the house,” on what many hope to be an eventual pivot from the Federal Reserve and the chance to refinance mortgages at a later date. Whether that pans out over the next few months remains to be seen.

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