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Mashvisor praises North Carolina as one of the best rental markets. Its investability post-COVID is thanks to its low vacancy rate, booming economy, excellent job growth, and growing population. A hefty tourism industry means that North Carolina is a great place to buy investment properties for vacation and long-term rentals alike.
Home prices in North Carolina are low compared to the rest of the United States. The national average is $416,100, but the average North Carolina home costs only $324,993, which represents a significant savings. Rental property investors would be remiss to pass up investment opportunities in this incredibly promising state.
With 34.69% of the population renting, the state's occupancy rate is 97%, which is very impressive, given that the national average for vacancies is 7%. At the same time, there are over 300 strong companies operating in the state, consistently attracting more renters.
In addition, North Carolina doesn't have any rent control laws, so rental property investors can continually raise rents in accordance with market values on their long-term rentals.
Additionally, North Carolina has a growing economy and job market, bringing in an influx of renters and a high demand for rental properties. The state's GDP is ranked 11th out of the 50 US states. In fact, it grew by an incredible 2.23% between 2022 and 2023. Job opportunities are plentiful, as evidenced by North Carolina's incredibly low unemployment rate of 3.4% — nearly half that of the national average.
The real estate investment market here is bolstered by the fact that North Carolina has a well-diversified economy, with its main sectors being advanced manufacturing, biotechnology, high education, pharmaceuticals, and finance. These are all well-paying sectors that significantly boost the average rent in this hot local market.
Landlords can expect a steady stream of potential residents, thanks to North Carolina's population growing at a comfortable rate of 1.26% per year. The state has multiple metropolitan areas, including Raleigh, Winston-Salem, and Durham, which signify major real estate investment opportunities thanks to high population density.
Over the past decade, business has taken off significantly in these cities as large corporations choose to invest in new offices here, which has brought even more well-educated new residents. Many of these are out-of-state potential renters moving here to take advantage of the many well-paying jobs that North Carolina offers, but there are also many younger families that would benefit from affordable housing in single-family homes.
For real estate investors, North Carolina is a gold mine. Thanks to the Blue Ridge Mountains, it's well-known as a relaxing, laid-back vacation destination. However, it also has multiple major business areas with a strong demand for long-term rental properties. All property types, whether short-term vacation homes or long-term family rentals, are in high demand. At the same time, home values are lower than elsewhere in the United States, meaning that investors can get great deals when they buy rental property in this promising state.
The Tar Heel State is the 6th most visited state in the country, with 43 million visitors every year coming to enjoy Biltmore Mansion, the Blue Ridge Mountains, and NASCAR races. Tourism revenue generally tops $33 billion per year, and because of the climate, it doesn't experience a large drop-off during the colder months as it does in more northern climes. Visitors are willing to spend good money to enjoy a more intimate experience in a private rental, so it's no wonder that there are over 98,000 vacation properties peppered throughout the state.
Because of the state's unique geography, both cozy log cabins and high-rise condos can prove to be quite lucrative, meaning you can get started with your real estate career in multiple different property niches.
While rents have decreased month to month in some areas of the state, the overall rental real estate market remains strong, with rents up 10% year-over-year. It's a tight housing market: the number of homes for sale in October 2023 fell by 7.7%, which further powers the high renter population in the state. Single-family properties are pretty popular, as many younger families have relocated to take advantage of the state's booming economy and plentiful job opportunities.
North Carolina's strong emphasis on higher education means a steady stream of college students who need accommodations. There were 562,187 students in undergraduate or graduate programs during the 2022-2023 school year, many of whom will seek off-campus accommodations in the surrounding area rather than living in dorms. For investors focusing on affordable housing, there are plenty of opportunities for rental property investment around the state's top universities.
With a variety of properties to choose from, Visio Lending offers flexible, 30-year loans for options such as vacation properties and 1-4 unit single-family rental properties, including condos and townhomes.
We have a range of permanent investment property loans on rented or rent-ready real estate throughout North Carolina, such as:
Our loan programs for investment properties are tailored to investors with:
Visio Lending strives to deliver the fastest, simplest and most dependable mortgage financing to enable investors to grow their real estate portfolios, improve cash flow and build wealth.
Visio Lending is the leading private lender to North Carolina residential real estate investors.
Visio Lending is the nation's premier lender for buy and hold investors offering, long-term loans for SFR rental properties, including vacation rentals.