November 20, 2024 – UNC Charlotte State of Housing in Charlotte 2024 Report offers data-informed take on housing issues

UNC Charlotte State of Housing in Charlotte 2024 Report offers data-informed take on housing issues
Growth drives demand, as affordable housing remains scarce in Charlotte metro

CHARLOTTE, N.C. – Nov. 20, 2024 – Enough people moved to the Charlotte metro from 2022 to 2023 to create a city roughly the size of Huntersville or Kannapolis, with 49,000+ newcomers relocating to the area. Taking a longer view, from 2014 to 2023, more than 471,750+ people have moved to the Charlotte area.

This brisk pace of growth — combined with a shortage of available housing and high interest rates — means that the Charlotte area faces a shortfall of housing that people with low and moderate incomes can afford. Although interest rates have dropped in recent months, and the supply of housing has improved somewhat, challenges persist, according to the State of Housing in Charlotte 2024 Report.

Published by the UNC Charlotte Childress Klein Center for Real Estate in the Belk College of Business, the practical, use-inspired research takes a close look at issues related to housing. In its sixth year, the report was released Wednesday, Nov. 20 at the annual State of Housing in Charlotte Summit at The Dubois Center at UNC Charlotte Center City.

“House prices have increased very quickly in Charlotte in recent years, making Charlotte housing increasingly unaffordable,” said Childress Klein Distinguished Professor of Real Estate and Urban Economics Yongqiang Chu, the study’s primary author.

“While the market has cooled significantly since COVID-19, there are no signs of significant price declines in the near future,” Chu said. “The significant slowdown in construction during the last two years and the easing monetary policy will put significant upward pressure on house prices going forward. Much needs to be done to achieve housing affordability.”

Key takeaways from the report:

  • House price growth has stabilized at a much lower rate than during the COVID-19 years; however, it is still growing. The median home prices in the Charlotte market increased from $414,360 in September 2023 to $429,945 in September 2024.
  • The supply side is catching up; however, significant challenges are ahead. The Charlotte Metropolitan Statistical Area provided a surplus of 5,000 housing units in 2023.
  • The housing market continues to be tight. The median days-on-the-market number is still less than 20 days.
  • Houses with affordable prices have become extremely difficult to find. Only 2% of houses sold for under $150,000, and only about 19% of houses sold for under $300,000 in 2024.
  • Housing affordability is slightly better than last year because of the declining interest rate. It would take a family income of $138,000 to afford a median-priced house in 2024. This compares to the 2023 State of Housing number, which was $152,000.
  • Rents have been decreasing in 2023 and 2024, thanks to the significant increase in multifamily apartment deliveries in the last several years.

In addition to Chu’s talk, a Q&A with industry experts followed, with Charisma Southerland of Canopy Realtor® Association, Bart Hopper of Hopper Communities and Marcie Williams of RKW Residential. The annual report draws upon six data sources and considers owner-occupied, rental and subsidized housing in an eight-county area of Mecklenburg, Cabarrus, Gaston, Iredell, Lincoln and Union counties in North Carolina and Lancaster and York counties in South Carolina.

Those providing financial support for the work include Canopy Realtor® Association, Faison, True Homes, Hopper Communities and Marcie Williams. The Canopy Realtor® Association provided substantial data contribution from its Multiple Listing Service.

The Childress Klein Center for Real Estate at UNC Charlotte was established in 2005 to further the knowledge of real estate, public policy and urban economics in the professional community through teaching, research and community outreach activities. The center administers the M.S. in Real Estate program, an MBA concentration in real estate finance and development, the M.S. in real estate and MBA dual degree, an undergraduate concentration and certificate programs.

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