Across the country, the real estate market is in a state of extreme flux. Vibrant in-demand cities are seeing a mass exodus as former residents are fleeing to suburbs in search of space and affordable living. This is causing prices outside city centers to skyrocket and those inside to plummet.
2020 saw a massive increase in unemployment with over 9.8 million jobs lost. This, in turn, caused occupancy rates to fall 60 bps from the previous year, and the effective rental rate to drop 1%. As we move through 2021, we have seen recovery from the historic lows of 2020. However, some areas are seeing a better recovery than others. One location in particular is Charlotte, NC.
Charlotte, NC: The Facts
While many densely-populated cities across the United States are seeing an exodus of residents and businesses, Charlotte is experiencing that which can be described as a “boom.” With Charlotte being home to a diversified set of industries, the possibilities for its growth move further than these existing industries:
– Information Technology
– Business Services
– Professional Services
The previously listed industries were able to quickly pivot to having employees working remotely without too much disturbance to everyday business activities. According to research, Charlotte’s GDP has increased 59% over the past 10 years. The stable job market combined with the influx of 30,000 college students each year has increased the absorption rate of properties in 2020 to 95.3%. 2021 is forecasted to have a similar absorption rate despite the previous year’s events. The rental rate is expected to increase 2.2% in 2021 and is forecasted to increase 2.7% in the following year.
The expansion of the public transit LYNX Blue Line will further connect the city, which will allow for easier transportation and ultimately increase the draw of living in Charlotte. This improved transit option will also open up previously untapped neighborhoods to the rental market. This will be able to house the 1.74% increase in year-over-year population growth.
Charlotte, NC: The Draw
The draw of a particular city is not only the presence of stable job markets and affordable housing, but people are drawn into the area because of the atmosphere, entertainment scene, and culture of the area. In Charlotte’s case, this city has the perfect combination of these factors to make people want to live here.
Charlotte is steeped in history. Named after Queen Charlotte in the 18th century, this historic city has its roots in the deep south. It has since grown to become a cultural hub with a vibrant culinary and entertainment scene, along with a thriving arts and music community. Charlotte has over 19 desirable neighborhoods, each with its advantages. With such a diverse set of sub-communities, there is something for everyone. It’s no surprise millennials are rushing to Charlotte in droves.
As many individuals were cooped up in their homes over the past year, the desire for accessing outdoor space has only increased. Luckily, Charlotte is home to many parks, scenic walking trails, and is only 25 miles to the closest Appalachian Mountain trail.
Thanks to the unique blend of culture, nature, and affordability, Charlotte has made its way into the top two cities to live in North Carolina.
Investing In Charlotte, NC
At Catalyst Capital Partners, we are investing in the future of Charlotte. We understand its potential and want to help to continue to make this a thriving city. This is why we are dedicated to creating great residential and commercial real estate properties in the Charlotte, NC area.