North Carolina's temperate climate and affordable cost of living attracts thousands of new residents each year.
The city's residents also enjoy the state's enriching educational experiences.
Charlotte is home to The University of North Carolina at Charlotte, Queens University of Charlotte, and Belmont Abbey College. Top students move across the country to North Carolina, driving the demand for available homes for rent in Charlotte, NC.
Students aren't the only ones who enjoy renting in North Carolina. As the official headquarters for Bank of America, Charlotte is a hotspot for finance professionals. Residents also enjoy vast employment opportunities from airlines, healthcare, retail, motorsports, and tech sectors.
Let's take a closer look at the trends impacting rentals in North Carolina.
Average Rent Cost in North Carolina
To understand rental trends in Charlotte, let's start with statewide trends.
According to most recent public data, the average monthly rental cost in North Carolina is $925. Despite a 1.6% increase in rent from the previous year, North Carolina's rental costs are still 15% less than the national average.
The state's vacancy rate for housing rentals is also 10% more than the national average. Tenants spend 19.48% of their income on rent, which is about 2.75% less than the U.S. average. The "fraction of income" average is also trending downward from previous years.
The number of renters in North Carolina is also less than the U.S. average. According to recent estimates, renters make up 34.69% of households, while renters account for 35.89% of households nationally. This fraction is trending downward from the previous year, declining by nearly 0.45%.
Housing Rental Trends in Charlotte, North Carolina
How do statewide and national rental trends compare to Charlotte?
The average rental cost for Charlotte residents is $1,300, which is higher than the state's average by more than 28%. Charlotte's average rental cost is also higher than the national average by 15%.
However, location plays a huge role. While many areas are in keeping with the $1,300 average, plenty of neighborhoods in Charlotte have rentals for as low as $700.
Charlotte also has a larger fraction of renter-occupied homes at 41%, which is 15% higher than the statewide average.
Charlotte's rental trends have been closely mirroring national trends, especially within the past two years.
Average Rental Costs by Location
The city's rental costs also vary by location, with Eastover claiming the highest rental average at nearly $2,000 per resident. Prices decrease by $300 in places like Uptown Charlotte, The Sound End, and Brookhill, which all average at around $1,600 to $1,650 per renter.
Not every area charges over $1,600 and $1,900 per renter. There are plenty of areas that charge under $1,000 per resident.
These areas include:
- Turtle Rock
- Robinson Church Road
- Oak Forest
- Shannon Park
- Hickory Grove
- Bradfield Farms
- Lakeland Hills
- Cedarbrook Acres
Renters in these areas pay $988 on average, while residents in Wilora Lake, Farm Pond, Idlewild, and North Sharon Amity at Reddman Road pay just over $1,000 on average. However, plenty of renters in Charlotte find rates as low as $700 for a one-bedroom apartment.
You'll find plenty of areas that charge renters between $1,070 and $1,105. These areas include Westover Hills, Todd Park, Pinecrest, Arbor Glen, and over 20 other locations in Charlotte.
Many Charlotte neighborhoods fall into the $1,200 to 1,300 range, including Oaklawn, Lincoln Heights, Washington Heights, Governor's Square, Collingwood, Greenville, University city, over several more locations.
These prices reflect the different market rates across Charlotte. Landlords use these market rates to price homes to rent in Charlotte, NC. Renters should also research market rate trends to find the best rental price in any given area.
What Impacts Housing Rental Trends in Charlotte?
Several factors impact average rental costs in Charlotte.
For example, if a neighborhood's average rental price is trending upwards, that means property values are increasing, as well.
These increases may be due to the following variables:
- More high-earning professionals are moving to a particular area
- There's a growing industry (i.e., tech and healthcare.)
- Medium to high-earning families moving to the area
- The area is a popular college town
- The area attracts tourism
- More people are investing in the area
"Up and coming" areas like trendy neighborhoods often see rising prices, especially as young high-earners move into the area. You'll find more investors investing in small business ventures, driving up rental costs.
Does the location hold a major event, like the World Series or an entertainment convention? These events attract tourists, driving the local economy and rental prices.
Housing Factors and Amenities that Impact Rental Cost
Housing design and tenant amenities also play a critical role in rental price trends in Charlotte.
Home size is one factor.
For example, one-bedroom rental homes are generally less expensive than two-bedroom homes. Studio apartments are usually less expensive than one-bedroom apartments.
However, location makes a big difference. A one-bedroom apartment in a lower market rate area may be less expensive than a studio in a high market rate neighborhood. Housing size is important, but market rates take priority.
Landlords also take square footage and yard space into account when determining rental prices.
Parking also affects rental cost trends.
As cities grow, parking spaces become more valuable. Renters who drive are willing to pay more for homes with garages or available street parking. Likewise, apartments with available parking may command higher rents.
Other amenities that impact cost include furnished rental properties, on-site gyms, in-home theaters, lounges, scenic views, and laundry rooms.
National Trends that Affect Homes for Rent in Charlotte, NC
Local trends are crucial, but the state of the country also dictates rental trends in Charlotte.
When the county is doing well economically, prices tend to rise in major cities. On the flip side, if the economy is stagnant or declining, rental prices may drop or stay flat. However, stable rental prices can help tenants and business owners who are getting back on their feet after a national economic crisis.
A struggling economy doesn't necessarily mean that rents drop across the board. In fact, recent data shows that home rental prices were up in the suburbs while prices were down in downtown areas. Homeownership rates also continue to grow as buyers take advantage of lower rates.
Discover the Best Rental Properties in Charlotte
Keep a close eye on local and national rental trends to discover the right time to rent or rent out a property.
Are you moving to Charlotte or growing your income as a landlord?
Bottom Line Property Management can help!
Browse any of our available homes for rent in Charlotte, NC or contact us to learn more about our property management services, like tenant screenings, property marketing, maintenance, inspections, and more.