UNC Charlotte State of Housing in Charlotte 2024 Report analyzes housing issues

November 22, 2024
Categories: General News Tags: Belk College of Business, Research

The number of people who moved to the Charlotte metro from 2022 to 2023 could create a new city about the size of Huntersville or Kannapolis, with 49,000+ newcomers moving here. The longer view from 2014 to 2023 shows that 471,750+ people have located to the Charlotte area.

The rapid growth — coupled with a shortage of available housing and high interest rates — has created a shortfall of housing that people with low and moderate incomes can afford. Interest rates have stabilized in recent months, and the supply housing has improved a bit, but there are still challenges, the State of Housing in Charlotte 2024 Report found.

Published by the UNC Charlotte Childress Klein Center for Real Estate in the Belk College of Business, the practical, use-inspired research is a comprehensive study of housing issues in the Charlotte metro. The real estate center released the report 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 was still less than 20 days in the report study period.
  • Houses with affordable prices have become extremely difficult to find. Only 2% of houses sold for under $150,000 — compared to 34.5% in 2014, and about 19% of houses sold for under $300,000 in 2024 — compared to 75% in 2014.
  • 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.

Industry panel provides insights

A conversation with industry experts followed Chu’s talk, moderated by Belk College of Business Dean Richard Buttimer, with Charisma Southerland ’94, the 2024 president of Canopy Realtor® Association and Canopy MLS; Bart Hopper, founder and CEO of Hopper Communities, a leader in residential homebuilding and land development; and Marcie Williams, a multi-family strategic advisor with RKW, a multifamily property management firm headquartered in Charlotte.

More about the report

The State of Housing in Charlotte report, in its sixth year, 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.

– 2024 State of Housing in Charlotte Executive Summary

– 2024 State of Housing in Charlotte Report 

Read the entire story on the Belk College of Business website at https://belkcollege.charlotte.edu/2024/11/21/state-of-housing-in-charlotte-2024-report-takes-data-informed-look-at-housing-issues/.