Charlotte investment properties offer buyers many options to meet their financial goals. Investors can choose to generate yields over the short-term, build longer-term wealth, or strike a balance by investing in rental properties. Why are all of these options available at a time when real estate inventory remains low? Because of the region’s healthy and diverse economy, stable rental demand and low entry prices.
Renters Drawn to Charlotte’s Diverse Economy
Charlotte’s diverse economy includes companies in the financial services, energy, government, healthcare and education services, as well as trade, transportation and utilities sectors. Financial institutions and banks have long fueled the region’s economic engine. The University of North Carolina Charlotte, an innovative institution in energy education, research and training, provides additional economic strength. As of December 2017, Charlotte’s unemployment rate stood at 4.2 percent, around the national average.
Several Fortune 500 companies call Charlotte home, including:
- Bank of America Corp.
- Duke Energy
- Sealed Air Corp.
- Family Dollar
- Sonic Automotive
- SPX Corp.
New companies, particularly in the energy sector, have made a push into the metro recently. As they continue to move into Charlotte, the region has earned the nickname, “Charlotte USA – The New Energy Capital.” Nearly 250 companies have direct ties to the energy sector.
Distribution Hub Fuels Rental Market
A central location between major northeastern and southeastern metros in the U.S. makes the Charlotte metro a primary distribution center in the Southeast. Charlotte also serves as a railway hub, offering Amtrak service to other North Carolina cities, major metropolitan areas along the East Coast and across the United States. The labor force that supports this city’s position as a distribution hub requires roofs over their heads: Charlotte rental properties.
Charlotte by the Numbers
Charlotte investment property vacancy hit a seven-year low at the end of 2017, dropping to 6.4 percent in the Charlotte area. Single-family rent increased 3.4 percent year-over-year in 2017, reaching $1,308 per month. By the end of 2018, we expect rents for Charlotte investment properties to increase to $1,344 per month.
Single-family rental prices are still very affordable in Charlotte. According to HomeUnion’s Data Science team, the median price for Charlotte investment properties was $165,000 at the end of 2017, well below the median U.S. price of $195,300. Yields, or cap rates, are also strong at 5.18 percent for Charlotte investment properties on HomeUnion.com.
Charlotte’s Quality of Life Attracts Renters
Charlotte has a wealth of recreational, cultural and educational attractions. One noteworthy community amenity is the 250-mile Carolina Thread Trail, a large regional network of greenways, trails and blue ways. This trail serves 2.3 million people, preserves natural areas and provides a place to explore the outdoors, science and local history.
An array of museums attract visitors to Charlotte from all over the United States. These include the Discovery Place, a hands-on science museum serving more than 500,000 visitors annually. The Harvey B. Gantt Center for African-American Arts and Culture is another popular institution, providing fine arts, arts education programs, and community outreach.
Two professional sports teams maintain home bases in Charlotte: the Carolina Panthers (NFL) and Charlotte Hornets (NBA). During football season, fans descend upon the Bank of America Stadium to watch the Panthers play. Meanwhile, during basketball season, fans fill the rafters at the Time Warner Cable to watch the Hornets play.
Invest with Ease
Whether you’re looking for an urban investment property near the financial services and energy-sector firms downtown, or a suburban asset with lots of upside potential, consider Charlotte investment properties. Consult with one of our Solutions team members at email@example.com to help you make a decision that best suits your investment needs.