Home Affordability: Why These North Carolina Cities Defy Current Trends
What makes cities like Raleigh and Charlotte so different?
Throughout the US, scales are slowly tipping back toward a buyer’s market, or at least a more balanced real estate landscape. After a couple of years of record-low interest rates and a sharp spike in demand for single-family homes, we’ve finally entered a less frantic real estate market…in most areas. However, some cities continue to see insatiable demand, even as mortgage rates rise back to pre-pandemic levels. What makes the real estate market in Raleigh and Charlotte so different from the majority of US markets?
Relative Affordability
While the mortgage rate decrease that took hold during the pandemic is now in the rearview, other pandemic-related shifts are here to stay. The rise of remote work is among the most impactful of these, with an ever-growing portion of the workforce abandoning daily commutes and business clothes in favor of home offices and sweatpants. Large companies across many industries have adopted a fully remote option going forward, plus many people are moving to self-employment options.
With this new location freedom, the draw toward living in expensive tech hubs like the Bay Area lessens. Instead, many professionals are swapping pricey, often-cramped coastal cities for more space and relative affordability in places like Raleigh and Charlotte. While the market still favors sellers, budgets accustomed to New York and California markets are well-equipped to find plenty of space and amenities in North Carolina. While homes in these cities are less affordable than they were a few years ago, they’re still more affordable than homes in comparable cities.
New Company Headquarters
For some, the move to North Carolina isn’t about remote work at all, but rather about following their company headquarters to new locations in the Research Triangle or Charlotte. Perhaps most notably, Apple is in the process of adding a hub near Raleigh, creating over 3,000 local jobs. Opportunities like these act as fodder for young professionals to head to North Carolina in search of career growth.
Quality of Life
Because of the relatively affordable housing and the thriving career opportunities, many people move to Raleigh or Charlotte hoping for a better quality of life. More open spaces and parks, tight-knit communities, easy access to outdoor recreation, and a variety of downtown offerings all make for healthy, happy lifestyles. With a climate that allows for outdoor activities throughout most of the year, young families and retirees alike find a comfortable new home.
Plus, being able to afford double the space for the same budget when compared to New York and California markets means that families can spread out and young professionals can invest in the amenities that matter most to them. Even as North Carolina cities see prices and demand refuse to let up, the comparative affordability still makes the move attractive to those coming from out of state. Of course, this steady demand makes it even more difficult for those looking to buy on non-Bay-Area budgets.
As trends continue to favor sellers in North Carolina and competition remains high at every price point, it’s important to consider a variety of options for finding your dream home. In many cases, the selection of existing homes is simply not sufficient in light of the high demand. Especially for those looking for specific can’t-miss qualities in their new home, browsing existing home listings and losing out on multiple bidding wars can feel frustrating.
To take control of your new home and ensure you end up with the amenities and specifications you truly need, consider building custom. With Atmos, you can build a home that fits your lifestyle and priorities, all with a simple and streamlined process. Learn more today!
