The Median household income of a Charlotte resident is $53,274 a year.
In Charlotte, NC, $212,100 is the house worth median. There has been an increase in the value of homes in Charlotte in the last year of 8.9 percent. Regarding the following year, it has been forecasted that the value of houses will increase 6.5 percent.
Per square foot, the list cost median is $144 in Charlotte. The Metro Area of Charlotte-Concord-Gastonia Metro has a lower per square foot list cost median of $129.
$285,000 is the cost median in Charlotte for homes presently listed. As far as rent costs go, Charlotte has a rent cost median of $1,445. Charlotte-Concord-Gastonia Metro Area has a slightly higher rent cost median of $1,450.
When it comes to the real estate economy, an important ingredient is the foreclosure rate. The foreclosure rate can have a big impact on the value of homes.
The lower the foreclosure rate, the higher the home value. If the foreclosure rate is super high, the value of real estate could go way down. If the value of real estate goes far down throughout much of the nation, we could be in a recessionary period.
In Charlotte, North Carolina, for each 10,000 houses, 2.0 houses are foreclosed. The Metro Area of Charlotte-Concord-Gastonia Metro has a lower rate of foreclosure which is 1.4 houses foreclosed for each 10,000 houses. The United States of America has a foreclosure rate of 1.6.
When a homeowner is on their way to foreclosure, there is a first thing that happens. It is mortgage delinquency. What is meant by mortgage delinquency? Mortgage delinquency is the condition of a homeowner missing a payment on their mortgage.
Charlotte has 1.8 percent as the percentage of mortgage delinquencies. This is higher than the mortgage delinquency rate of the United States which is 1.6 percent.
The recession in the year 2008 wreaked havoc on the real estate economy as well as the economy as a whole in the United States. It caused the value of homes in our nation to drop more than 20%.
This caused many homeowners to presently be underwater regarding their mortgages. What does it mean to be underwater on a mortgage? It means that the value of a home is less than the mortgage debt of the home.
10.3% is the percentage of homeowners in charlotte who are underwater on their mortgages. The Metro Area of Charlotte-Concord-Gastonia has a lower underwater rate of 8.0 percent.
We are now moving on to Charlotte North Carolina commercial real estate. We are going to cover a little about two areas:
1. The office market of Charlotte
2. The trend of tenants moving downtown to live
Regarding the Charlotte office market, leasing has gone back to more normal levels after a very strong quarter. In the most recent 4 quarters, 3.8 million square feet of space has been leased by tenants.
There was a 20 basis point drop from the first quarter in availability in the market. 15.2 %. There was also a drop to 18.8% in availability of Class A, a decline of 40 basis points.
Quarter over quarter the asking rent price increased 0.6 percent. This was an increase to $26.09 per square feet. Quarter over Quarter the asking rent price of Class A properties went up 0.9 percent. This was an increase to $28.72 per square feet.
During the last 6 month period through May of 2018, there was a big drop in sales of office property. The total sales during this period was $426 million. This was a drop of 44% when you make a comparison to the previous six month time period in which $756 million was sold.
Now, when it comes to the trend of tenants moving downtown to live, they like the new option of living in factories and warehouses that have been converted into living spaces. They also like the CBD that has groundup construction.
Some companies want suburban office parks as an option for locations which is a change in the suburbs to urban core that exists in so many big metro areas in the United States.
In the Charlotte suburban areas, developers are emphasizing that these suburban areas are a place to live-work-play at. And it looks like it’s working out well. Not only are tenants within the region moving to them, but also employers are moving from other markets to the region which benefits these projects.
For a great source to find out more about apartment real-estate in Charlotte, go to http://www.biggerpockets.com/
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