If you’re a landlord in or around the Charlotte area, then chances are that business is booming. The Queen City of the South is one of the top 10 fastest growing cities in the country. According to census data collected and evaluated in the past decade, Charlotte has seen an influx of over 200,000 new residents between the years of 2016 and 2021. With its temperate weather, lower cost of living, and wide variety of cultural spots and activities, it’s not very hard to see why Charlotte has such a strong appeal to so many people.
Naturally, this great migration will have effects on the rental property market and the real estate market at large. The market is driven primarily by supply and demand. The lower the demand and larger the supply, the lower the rates. When demand is high and supply is limited, landlords can successfully charge more for their space, increasing their overall profits. Many couples and families have begun looking to rental properties as a viable alternative to traditional homeownership and mortgage.
So, how does this affect owners of rental property in the city and the surrounding areas? Fortunately, Charlotte’s infrastructure is constantly growing and expanding, leaving ample opportunity for investors to find marketable space. But the city itself may not be big enough nor expanding rapidly enough to house all the people who are arriving in droves. Rental investors may have to turn their focus to the smaller towns and suburbs that surround the city center. This could be a fantastic opportunity for homeowners who already live in those areas to profit from the rental market.
Of course, not everyone who migrates to Charlotte is from out of state. Many people who decide to move closer to Charlotte may be leaving the nearby cities. This leaves those rental property owners with decreased demand, often forcing them to lower their rates. It’s important to recognize that Charlotte’s growth has perceivable and often surprising long-term effects on the economy of surrounding areas.
Our team here at Talley Properties is ready to help you find your footing in the tumultuous and fast-paced world of property investment. With over 40 years of property management services, we’re very familiar with the Charlotte rental market. Whether you’ve got your eye on an investment property or you’re already in the midst of marketing and screening tenants, Talley Properties is here for you! Contact us to learn more about our services and find out how we can help you succeed!