Are you an investor looking to capitalize on one of the hottest real estate markets in the country? Or maybe you are a homeowner in the beautiful state of North Carolina wondering how ‘hot’ your market really is. After speaking with investors in our network and consulting experienced North Carolina Realtors, here are the top four hottest real estate markets in North Carolina—along with some investment tips for our readers.
North Carolina has grown to be home to some of the country’s strongest real estate markets. Both the Triangle and Charlotte metros have seen a rapid influx of millennials, largely due in part to high job growth, living affordability, and nice weather. With rents and home values in the state on the rise as well, the prospect of a successful real estate investment in North Carolina has become more viable than ever. If you are an investor looking to pivot into a new real estate market, look no further as these are the four hottest real estate markets in North Carolina.
1. Raleigh, North Carolina
The residential real estate market in North Carolina’s capital has been booming for some time. Raleigh’s position as a hub for research, education, information technology, and healthcare is largely responsible for this. The prevalence of higher education institutions and a 2% job growth, which is higher than the national average, makes the city a popular place to live for college students and young professionals alike.
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The population of Raleigh has risen 25.6% over the past 10 years, as opposed to North Carolina’s 11.2%. All the while, home values in the city have increased by almost 29% in the past year, with rents increasing 25% in the past three years. This has solidified Raleigh’s spot as one of the most profitable real estate investment markets in the United States. In their early predictions for the year, Zillow even ranked Raleigh the third hottest real estate market to invest in for 2022, citing “home value growth, strong economic fundamentals including high job growth, fast-moving inventory and plentiful likely buyers” as justifications for their ranking.
2. Burlington, North Carolina
Consistently a top-ranked residential real estate market in the United States since mid-2019, Burlington is located between the two robust markets of Raleigh and Greensboro. In addition, Realtor.com ranked Burlington the hottest housing market in the United States in its November 2021 rankings. As of February 2022, Burlington homes have been managing to sell for 16.3% more than they did a year ago. They are selling in less than 24 days, 57 days faster than the national average. Additionally, properties in the Burlington area have received twice as many unique viewers per property than the average American home. As one of the smaller, lower-profile markets on this list, getting into the Burlington real estate market now would put any real estate investor in a great position to make a profit in the future.
3. Durham, North Carolina
The Bull City currently boasts a population of almost 300,000 and serves as North Carolina’s fourth most populous city. With a yearly population growth of 1.57%, 3 times that of the United States, the city of Durham adds over 10 households per day. Currently, the median rent in the city rests at $1,432 per month, over $300 greater than the national median rent. Despite this, Durham is still considered an affordable place to live. This trend of affordability has caused many rental property owners to take advantage of Durham’s strong potential for cash flow. Additionally, its proximity to North Carolina’s bubbling Research Triangle Park (RTP) is the icing on the cake.
4. Charlotte, North Carolina
Charlotte has seen unprecedented population growth in recent years, with it recently seeing the largest increase in millennials of any city in the United States. The Queen City is currently home to seven Fortune 500 companies and its impressive job market is further solidified by it being the second largest banking center in the United States, behind only Wall Street.
While North Carolina’s overall population is currently growing, over 40% of its towns and cities have been decreasing in population. In addition, 70% of the state’s growth is centered in the Triangle and Charlotte-area alone. This has enticed many real estate investors to take advantage of investment opportunities in the area. Furthermore, over the past five years, home values in Charlotte have increased by a whopping 86%. This past year alone, home values have increased 25%. Additionally, Zillow is projecting Charlotte to be one of the country’s hottest investment markets in 2022, and the city recently received the fifth spot on their rankings.
Tips For Prospective Investors
If you are interested in investing in one of North Carolina’s flourishing real estate markets soon, these are some tips that will make sure your investment is a successful one.
- Network with reputable agents in the area. With many properties in the state selling long before they hit Zillow and Redfin, being connected with an agent will grant you access to all kinds of information in your target area. Agents have access to the Multiple Listing Service (MLS) and can alert you when new deals appear on/off-market. Northstate Equity’s Chief Operating Officer, Licensed Agent Samuel Culpepper can point you in the right direction if you’re looking to connect with Realtors. To get in touch, shoot him an email at [email protected].
- Find a quality property management company. When entering a new market, this is best practice. By getting in touch with the right people, it will prevent you from having issues with rental properties investments down the line.
- Get pre-approved by a lender with experience in your prospective market. For starters, this will prevent many headaches that can arise when dealing with lenders with a limited background.
If you are interested in getting access to exclusive, off market deals in North Carolina. Fill out this form and you will be added to Northstate Equity’s buyers list. This will allow you to receive priority access to all leads that fit your investment criteria!
Bottom Line
Population growth, rising rents and home values, and attractive job markets are all factors to consider when searching for a new real estate market to invest in. Fortunately, many cities in North Carolina check off all of these boxes! This indicates that the state will continue to serve as one of the best places to purchase an investment property in 2022.
Join our buyers list today! We’ll help you kickstart your journey to buying a home in one of these real estate markets in North Carolina!
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