Zillow ranks Raleigh, North Carolina, and Charlotte, North Carolina, among the top 10 hottest real estate markets for 2022, although there are plenty of potential opportunities for investors throughout the entire state.
Low inventory combined with sky-high housing demand is driving home prices and monthly rents higher in North Carolina due to strong in-migration and a robust economy. According to the Department of Commerce, the state added more than 24,000 new jobs last year through nearly 200 recruitment and development projects, setting the stage for more this year.
Median home sale prices in North Carolina increased by more than 20% year over year, while rents in many of the best markets grew by double digits over the past 12 months. As a result, fewer homes are for sale this year, with more than half of the homes selling for the above list price.
Here are 10 North Carolina rental markets in which to consider purchasing a real estate investment property, including cities where 40% or more of the households are renter-occupied.
Why consider investing in North Carolina?
North Carolina is home to the second-largest banking center in the country (after New York City), the largest research park in the nation, and several large, prominent universities, including Duke, the University of North Carolina, and Wake Forest, along with rapidly rising home prices.
Between 2010 and 2020, the population of North Carolina grew by 9.5%, with more than 903,000 residents and countless businesses moving to the state for a lower cost of living and doing business and a better quality of life.
A shortage of housing inventory in North Carolina is driving median sales and rent prices higher. The median sale price of a home in the state increased by over 20% year over year, while the number of homes for sale declined by 27% compared to one year ago. In top rental markets like Charlotte and Raleigh, more than 40% of the households are occupied by renters.
While the number of homes slightly decreased compared to the same period last year, the number of homes for sale dropped by 33.2%. An inventory shortage of homes for sale in North Carolina may be one reason more than half of the homes sold above list prices and likely receive multiple offers.
Here are 10 cities in North Carolina to consider for an investment property, using Redfin and Realtor.com for housing market data, Zumper for rent data, CensusReporter for population and income information, and the United States Census Bureau for 10-year population growth.
Charlotte
Significant development in Charlotte is occurring from one end of the city to the other, including a new medical school campus and innovation district, new affordable housing units, and a massive development project connecting the Uptown and South End neighborhoods. In addition, the city is the economic and cultural center of the metropolitan area and is within an easy drive of Greensboro, Fayetteville, and Raleigh:
Population: 873,570
Population growth: 19.6%
Median sale price: $382,000
Change in sale price (year over year): 20.3%
Days on market: 28
Median rent (3-bedroom home): $1,880
Change in rent price: 11%
Renter-occupied households: 43%
Median household income: $65,359
Raleigh
Raleigh is the second-most populous city in the state and the largest city in the Research Triangle metro area, along with Durham and Chapel Hill. The city is home to North Carolina State University and a diverse economy, including the financial services, food processing, health care, pharmaceutical, and research industries:
Population: 469,698
Population growth: 15.8%
Median sale price: $405,000
Change in sale price (year over year): 22.0%
Days on market: 25
Median rent (3-bedroom home): $1,820
Change in rent price: 11%
Renter-occupied households: 49%
Median household income: $69,720
Durham
Durham is located in the east-central part of North Carolina and is one of 3 cities anchoring the Research Triangle. According to the chamber of commerce, Durham is in the midst of an entrepreneurial boom, attracting both individuals and startups, along with investors from Silicon Valley:
Population: 283,506
Population growth: 24.2%
Median sale price: $400,000
Change in sale price (year over year): 25.0%
Days on market: 28
Median rent (3-bedroom home): $1,800
Change in rent price: 9%
Renter-occupied households: 35%
Median household income: $62,812
Cary
Cary is located in the heart of the North Carolina Research Triangle and is home to 22 Fortune 100 and Fortune 500 companies. The city has been ranked as one of the top real estate markets in the U.S. by WalletHub, based on 18 key metrics, including home price appreciation and population and job growth:
Population: 174,721
Population growth: 29.2%
Median sale price: $556,750
Change in sale price (year over year): 42.8%
Days on market: 20
Median rent (3-bedroom home): $1,995
Change in rent price: 14%
Renter-occupied households: 24%
Median household income: $107,463
Concord
Concord is located in the center of the Piedmont Region and is the second-most populous city in the Charlotte metropolitan area. The city has a diverse economy, including banking, transportation, manufacturing, and motorsports. Concord is home to the Charlotte Motor Speedway, a NASCAR R&D office, and several professional racing teams:
Population: 105,240
Population growth: 33.0%
Median sale price: $360,340
Change in sale price (year over year): 23.3%
Days on market: 33
Median rent (3-bedroom home): $1,784
Change in rent price: 12%
Renter-occupied households: 33%
Median household income: $70,973
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