UNC Charlotte Releases 2025 State of Housing Report

From REBIC

Charlotte’s rapid growth has created persistent, strong demand for housing. While supply has started to catch up with demand, and income growth has helped, affordable housing has hovered out of reach for many in the region, according to the State of Housing in Charlotte 2025 report.

“Rapid growth inevitably leads to persistent and strong demand for housing,” said Childress Klein Distinguished Professor of Real Estate and Urban Economics Yongqiang Chu, the study’s primary author. “The good news for the Charlotte region is that the supply was catching up with the demand in 2024,” Chu said. “Together with the rapid increases in household income and the decreasing interest rates, housing affordability slightly improved in 2024.” The high-interest rate environment may have a significant impact on future supply, particularly in the next two to three years, he said.

Published by the Childress Klein Center for Real Estate in UNC Charlotte’s Belk College of Business, the report offers trusted data-driven insights for businesses, policymakers and consumers interested in the economic vitality of the Charlotte region. In its seventh year, the report was released Wednesday, Oct. 29, at the annual public State of Housing in Charlotte Summit at The Dubois Center at UNC Charlotte Center City.

Key takeaways:

• House price growth continues at a moderate pace. The median home price in the Charlotte market increased from $429,945 in September 2024 to $443,850 in September 2025, representing a year-over-year growth rate of 3.24%.
• Supply continues to catch up with demand. The Charlotte Metropolitan Statistical Area added 28,951 housing units in 2024, exceeding the increase in households of 24,837 and creating a surplus of approximately 4,114 units. This continues the positive supply trend that began in 2023.
• The housing market is gradually loosening. The median days-on-market increased from 19 days in September 2024 to 27 days in September 2025, signaling a less frenzied market.
• Affordable housing remains critically scarce. Only 1.88% of houses were sold for under $150,000 in 2025, and only 17.8% were sold for under $300,000. This represents a dramatic shift from 2021, when 4.75% were sold for under $150,000 and 35.7% were sold for under $300,000.
• Housing affordability showed modest improvement due to declining interest rates and strong income growth. It would take a family income of $146,280 to afford a median-priced house in 2025. This compares to $138,036 in 2024. Household income growth has outpaced house price growth, providing some relief.
• Rental rates stabilized with unprecedented supply increases. Apartment effective rents decreased from $1,591 in 2022 to $1,566 in 2025, thanks to significant multifamily apartment deliveries. The Charlotte region added 19,754 apartment units from 2024 Q3 to 2025 Q3, the largest annual increase ever recorded.
• Population and household growth accelerated in 2024. The Charlotte MSA grew by 78,255 people from 2023 to 2024, achieving a 2.79% growth rate, which is the highest growth rate since 2014.
• Future supply challenges loom. The significant construction slowdown in 2022-2023 due to monetary policy tightening is likely to cause dramatic decreases in housing deliveries in 2026 and beyond, potentially reigniting affordability pressures.

In addition to Chu’s analysis at the summit, a Q&A with industry experts followed, with Charisma Southerland of Canopy Realtor® Association, Brian Bradley of Grubb Properties, and James Scruggs of Kingdom Development. Chandler Lutz, Steven Ott Distinguished Scholar in Real Estate, moderated the panel.

The report considers owner-occupied, rental and subsidized housing in an eight-county area of Mecklenburg, Cabarrus, Gaston, Iredell, Lincoln and Union counties in North Carolina and Lancaster and York counties in South Carolina. Financial supporters include Canopy Realtor® Association, the Greater Charlotte Apartment Association, True Homes and the Piedmont Public Policy Institute. The Canopy Realtor® Association provided substantial data contribution from its Multiple Listing Service.

The Childress Klein Center for Real Estate at UNC Charlotte was established in 2005 to further the knowledge of real estate, public policy and urban economics in the professional community through teaching, research and community outreach activities.

• 2025 State of Housing in Charlotte Executive Summary
• 2025 State of Housing in Charlotte Report

Rob’s Take:  It’s pretty simple. If there are not enough homes to go around, the price goes up. The price goes even higher when it takes longer to deliver those units because of permitting and inspection delays. For those of you who have run into some of these challenges, please let me know about it. I’m particularly interested in showing how delays in the process directly affect the cost to the end user. If you are willing to share some details, let me know.

I’ll leave you with this. In 2018, households earning $75,917 per year, could afford the median sales price home in the Charlotte region. Today that figure has nearly doubled to $146,280. This is unsustainable. If we don’t find a way to house our workers, we will lose our competitive edge and just be the place that had a busy airport for a while and is located about two hours from the mountains and three hours from the beach. I think we have more to offer than that.