Only a quarter of homes in the Charlotte area sold for less than $300,000, study finds

Only a quarter of homes in the Charlotte area sold for less than $300,000, study finds

Photo: Bri Crane/Axios

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Charlotte isn’t building enough housing to keep up with the influx of people moving to our region, meaning for many, it’s becoming unaffordable to live here, a new report from UNC Charlotte’s Childress Klein Center for Real Estate found.

What’s happening: As demand outstrips supply, prices have risen in both the rental and for-sale markets in the eight-county Charlotte region.

  • From 2014 to 2021, the number of housing units increased by 166,009, or 1.6% per year. But over the same time, the number of households rose by 188,743. That translates to a shortage of 22,734 housing units over that time.

Plus, starter homes are getting more expensive: Only about a quarter of homes sold in 2022 are under $300,000, and just 3.8% are under $150,000.

Why it matters: Despite spending millions of dollars to build affordable housing, Charlotte can’t keep pace with the growing need. And most efforts have focused on creating affordable rental housing, but homeownership has become increasingly out of reach for many.

Details: The report also revealed how COVID-19 exacerbated Charlotte’s affordability issues.

  • The median home price in the region rose from $273,500 in January 2020 to $420,000 in September 2022.
  • In 2021 alone, the average effective rental rate increased by 16.6% per unit.

What’s next: While homes are taking longer to sell and there are signs the market is softening, higher interest rates have made buying more unaffordable.

  • You would need to make $136,750 per year to afford the median priced home, the report concluded, an increase from $89,816 last year.
  • More than 80% of households cannot afford a median-priced home in the Charlotte region.

 

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