Renting a home has long been viewed as a more affordable alternative to buying property.
But with rent prices rising—and rising fast—that may no longer be the case.
Here in our local Charlotte Metro Area Rental Market, the Average Monthly Lease Price in October 2020 was $1,635, compared to October 2021 where the Average Monthly Lease Price was $1,819 which is an increase of 11.2%.
In October 2020, there were 1,343 available rental properties.
In October 2021, there were only 810. That is a decrease of 39.7%
In regards to the price point, you can see that in 2019, there were 907 properties leased with an average monthly lease price of $1,561. This increased in October 2020 by 4.7% in price but decreased in the number of properties leased.
Moving to October 2021, you can see that the number of properties leased decreased by 19.8%, yet increased in prices by 11.2%.
So let's take a look at the sales market now.
In October 2020, interest rates set new record lows again in October, and are helping to maintain buyer purchasing power in the face of rising home prices driven by multiple offers across many segments of the market. While seller activity in some segments has improved, available inventory remains tight in many areas. For the 12-month period spanning November 2019 through October 2020, Pending Sales in the Charlotte region were up 7.9% overall. The price range with the largest gain in sales was $300,001 and Above the range, where they increased 27.5%.
The overall Median Sales Price was up 9.1% to $275,000. The property type with the largest price gain was the Condo-Townhome segment, where prices increased 9.6% to $228,000. The price range that tended to sell the quickest was the $150,001 to $200,000 range at 22 days; the price range that tended to sell the slowest was the $300,001 and the Above range at 51 days.
Market-wide, inventory levels were down 47.6%. The property type that lost the least inventory was the Condo-Townhome segment, where it decreased 27.9%. That amounts to 1.1 months supply for Single-Family homes and 1.4 months supply for Condos-Townhomes.
In October 2021, despite labor shortages and supply chain disruptions, new home construction continues along at a steady pace, with the latest data from the U.S. Department of Housing and Urban Development reporting new home sales rose 14% to a seasonally adjusted rate of 800,000 this fall. Strong demand for new housing can be seen in the increase in builder confidence as well as in the surge in new home prices, which are posting double-digit increases this fall. For the 12-month period spanning November 2020 through October 2021, Pending Sales in the Charlotte region were up 7.6% overall. The price range with the largest gain in sales was $300,001 and Above the range, where they increased 33.3%.
The overall Median Sales Price was up 15.2% to $316,716. The property type with the largest price gain was the Condo-Townhome segment, where prices increased 16.2 percent to $265,000. The price range that tended to sell the quickest was the $200,001 to $300,000 range at 14 days; the price range that tended to sell the slowest was the $100,000 and Below range at 27 days.
Market-wide, inventory levels were down 37.3%. The property type that lost the least inventory was the Single-Family segment, where it decreased 35.4%. That amounts to 0.8 months supply for Single-Family homes and 0.7 months supply for Condos-Townhomes.
The Takeaway:
So, what does this mean for you? As rents and home prices continue to increase—and rental properties and homes for sale become less affordable—consider all options before making a final decision. So if you’ve been thinking about making the transition from renter to homeowner, or from homeowner to landlord? Now could be a great time to make a move.
Looking to learn more? Take a look at our Is Homeownership For You? Guide
The Charlotte Region report includes the counties of Alexander, Anson, Cabarrus, Catawba, Cleveland, Gaston, Iredell, Lincoln, Mecklenburg, Rowan, Stanly, and Union in North Carolina, and Chester, Chesterfield, Lancaster, and York counties in South Carolina Percent changes are calculated using rounded figures. Info from Canopy MLS.
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