October 25, 2023

Unveiling Housing Costs in Charlotte, NC in 2023: A Comprehensive Outlook


The Charlotte, NC housing market has been a topic of great interest and speculation in recent years. With its booming economy, job growth, and desirable quality of life, Queen City has become one of the fastest-growing cities in the country, attracting young professionals and families alike. However, this growth has also led to increased demand, limited inventory, and rising home prices, making it crucial for both buyers and sellers to understand the latest market trends and forecasts. In this article, we will provide a comprehensive overview of the housing costs in Charlotte, NC in 2023, exploring key metrics such as home prices, inventory, sales activity, and affordability.

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The State of the Charlotte Housing Market

The housing market in Charlotte, NC has experienced significant fluctuations in recent years. From the mad rush of 2020 through 2022, where sellers could practically name their prices and listings disappeared within minutes, to the more stabilized market we see today, buyers now have the opportunity to negotiate terms of the deal. Demand has eased partly due to the Federal Reserve’s decision to hike interest rates throughout 2022, which has discouraged potential homebuyers from applying for mortgage loans. However, it is important to note that lower demand does not equate to low demand. In fact, in January, Zillow identified the Charlotte area as the hottest housing market in the country for 2023, indicating that the market remains highly competitive despite some stabilization.

Home Prices and Affordability

One of the key factors impacting the Charlotte housing market is the skyrocketing home prices. According to the Childress Klein Center for Real Estate at UNC Charlotte, the median home price in Charlotte has increased from $273,500 in January 2020 to $420,000 in September 2022, representing a staggering 54% increase. This surge in prices has made it increasingly difficult for prospective buyers, especially those with lower incomes, to afford a home in the region. Less than 4% of homes sold are priced under $150,000, and only one in four homes sold for less than $300,000. In 2012, a household earning less than $50,000 per year could afford a median-priced home in the Charlotte region. However, in 2022, a household needed to earn at least $136,750 to afford the same home. This affordability crisis poses a significant challenge for individuals and families hoping to enter the housing market in Charlotte.

Despite the challenges posed by rising home prices, the Charlotte housing market continues to show resilience. While new listings, pending sales, and closed sales have experienced decreases over the past year, the median sales price has remained relatively stable, with a minor 0.4% dip. On the other hand, the average sales price has shown healthy growth, increasing by 3.4% year-over-year. A notable trend in the market is the increase in cumulative days on the market until sale, which has risen by 123.5% for the year to date. This indicates that homes are taking longer to sell, suggesting potential shifts in buyer behavior and seller expectations.

Forecast for the Charlotte Housing Market

Looking ahead, the forecast for the Charlotte housing market in 2023 presents a mixed picture. While there has been a decrease in some key metrics, such as new listings, pending sales, and closed sales, there is optimism in the forecast. The average sales price has shown growth, and with a 1.4% decrease in months supply of inventory, the market may become more competitive. However, it is important to note that the lack of affordable housing continues to be a pressing issue in the region, posing challenges for prospective buyers.

Affordability Challenges and Solutions

The lack of affordable housing in Charlotte has been a problem for at least a decade, and it continues to worsen. The rising home prices and limited inventory make it increasingly difficult for individuals and families with lower incomes to enter the housing market. Efforts have been made by city officials and organizations to address this issue, such as increasing the Housing Trust Fund. However, these efforts have been overshadowed by the region’s rapid growth and high demand for homes. More comprehensive and long-term solutions, like the city’s new Unified Development Ordinance that promotes denser housing, will take time to implement and reverse the affordability trend.

Impact on Charlotte’s Economy

The lack of affordable housing in Charlotte poses not only challenges for individuals and families but also has significant implications for the city’s economy. The city’s economy, particularly in the urban core, relies on service-industry labor. However, if workers cannot afford to live near their jobs, it may result in a withering labor force. This can have a detrimental impact on the city’s economic growth and development. It is crucial for city officials and stakeholders to address the affordability issue to ensure a sustainable and vibrant economy.

Mortgage Interest Rates and Buyer Behavior

Another factor impacting the Charlotte housing market is the rise in mortgage interest rates. After the 2008 financial crisis, rates plummeted, and buyers could secure 30-year fixed-rate mortgages at historically low rates. This led to a surge in demand and benefited sellers. However, in recent times, mortgage rates have increased, reaching levels close to pre-2008 standards. This has caused some buyers to hold off on purchasing homes, resulting in a decline in home sales and listings. The fluctuation in mortgage rates adds another layer of complexity to the already competitive market.

Builders’ Challenges and Adjustments

Builders in Charlotte are also facing challenges of their own. The COVID-19 pandemic brought construction to a halt in 2020, and even though construction has resumed, the recent easing of demand has tapped the brakes once again. Builders are also grappling with supply chain issues, leading to delays in completing projects. The shortage of materials, such as garage doors and windows, has prolonged construction timelines, adding to the challenges faced by builders. The adjustment to these complications is an ongoing process that requires adaptability and resilience in the face of changing market conditions.

The Future of the Charlotte Housing Market

The future of the Charlotte housing market remains uncertain, as it is influenced by various factors such as economic conditions, demand, and policy decisions. Monetary policy, including interest rates, will continue to play a significant role in shaping the market. Additionally, the region’s desirability as a place to live and work will impact migration patterns and demand for housing. It is crucial for stakeholders and policymakers to closely monitor market trends and develop proactive strategies to address the affordability crisis and ensure a sustainable and inclusive housing market in Charlotte.


The housing costs in Charlotte, NC have seen significant changes in recent years, with rising home prices and limited affordability posing challenges for prospective buyers. While the market has stabilized to some extent, demand remains high, making it a competitive environment for both buyers and sellers. Efforts to address the affordability crisis are underway, but long-term solutions are needed to ensure a sustainable and inclusive housing market in Charlotte. As the city continues to evolve and grow, it is essential for stakeholders to monitor market trends, adapt to changing conditions, and work towards creating a housing market that is accessible to all residents.

Also, read this :

Is Charlotte NC Cheap to Live? A Comprehensive Guide in 2023

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