Is North Carolina a Good Place to Invest in Real Estate?

Real estate investment requires evaluating locations with promising growth and stability. North Carolina has emerged as a prime location, driven by its economic and demographic factors.

Economic and Demographic Drivers

North Carolina has experienced substantial population growth over the past decade, adding approximately 1.1 million people and ranking among the top states for numeric population gain. This growth is largely fueled by in-migration, with the state gaining nearly 340,000 people from other states in 2023.

The state’s population reached over 11 million people by late 2024, continuing its trajectory as the ninth most populous state. Projections indicate North Carolina is on track to become the seventh largest state by the early 2030s. Net migration accounts for 95% of total population growth between April 2020 and July 2024.

North Carolina benefits from a robust and diversified job market. Key industries include technology, finance, healthcare, and manufacturing. The state’s employment base totals over 5 million people, with sectors like Healthcare and Social Assistance being major employers. North Carolina consistently ranks highly for its business environment due to its diversified economy and favorable legal and regulatory climate.

Corporate relocations and expansions have significantly bolstered the state’s economic landscape. Major corporations have chosen to invest in North Carolina, bringing thousands of high-paying jobs. For example, one company is investing over $1 billion to establish a new campus, creating thousands of skilled positions.

Extensive infrastructure development supports economic and demographic expansion. North Carolina has invested in improving its transportation networks, including roads, airports, and seaports, essential for business logistics and connectivity. Efforts also focus on expanding broadband access to support remote work and economic development.

The state’s strategic location along the Eastern Seaboard provides efficient access to major markets, supported by a comprehensive highway and rail system. These infrastructure investments accommodate a growing population and expanding business activity. The combination of population growth, diverse job opportunities, corporate investment, and infrastructure improvements creates a foundation for sustained real estate demand.

Real Estate Market Dynamics

North Carolina’s housing market has shown consistent growth, with the median home price reaching approximately $367,800 as of January 2025. This figure represents a 3.8% year-over-year increase, indicating steady appreciation in home values across the state.

Home value appreciation rates saw a surge in 2021 and 2022, peaking at 22%. While growth moderated in recent years, it suggests a return to more sustainable rates. Over the last five years, North Carolina experienced a substantial 69.63% appreciation in home values.

The rental market in North Carolina reflects a dynamic environment, with average rents varying depending on property type and location. As of August 2025, the average rent in North Carolina is $1,360 per month. The average rent for all bedroom types and properties statewide is around $1,895.

Rental market trends indicate that median rent has outpaced inflation statewide by over 20% from 2014 to 2023, though growth is not uniform across all counties. Most rent increases are in metropolitan and suburban areas. The statewide rental vacancy rate stood at 6.40% in January 2024. Investor-owned properties generally exhibit higher vacancy rates.

North Carolina faces a significant housing inventory gap. The state’s overall for-sale availability rate is 0.8%, considerably below the healthy market range of 2%-3%. This limited supply, coupled with ongoing demand, has contributed to price increases. However, the number of homes for sale increased by 22.1% year-over-year in June 2025, suggesting an expanding inventory.

The housing market currently exhibits characteristics of a balanced market, with some trends favoring both buyers and sellers. The median days on the market for homes was 63 days as of January 2025, a slight increase from the previous year. Despite increasing inventory, demand remains strong, keeping prices elevated.

Key Investment Considerations

Property taxes in North Carolina are assessed and collected at the county level. Real property is valued based on a multi-year cycle, typically every four or eight years, with the value remaining constant for the duration of that cycle. Some counties conduct reassessments periodically, with values based on current market conditions.

Property owners can appeal their assessed property value if it does not reflect fair market value. The appeal process begins with an informal review with the county tax office. If an agreement is not reached, a formal appeal can be made to the county’s Board of Equalization and Review. The property owner must demonstrate that the assessment is inaccurate or inconsistent with comparable properties.

North Carolina General Statutes Chapter 42 outlines the rights and responsibilities of both landlords and tenants. This includes provisions for lease agreements, security deposits, and eviction processes. Landlords must provide and maintain a safe and habitable living environment.

Security deposit regulations are specific in North Carolina. For leases longer than month-to-month, the maximum security deposit a landlord can charge is two months’ rent. For monthly leases, it is one and a half months’ rent, and for weekly leases, two weeks’ rent. Landlords must return the security deposit within 30 days of the tenant vacating the property, or within 60 days if extensive deductions require more time, provided an interim accounting is given within 30 days.

The eviction process, legally termed “Summary Ejectment,” must follow specific procedures. For non-payment of rent, a landlord must issue a 10-day Notice to Pay or Quit before filing a complaint in small claims court. The process generally takes two to four weeks if uncontested.

In North Carolina, municipalities and counties oversee zoning rules, classifying land for specific uses such as residential, commercial, or mixed-use. These regulations dictate what can be built, including building heights, setbacks, and density.

A zoning permit is often the initial step in a construction project, ensuring the proposed use aligns with the local Unified Development Code. This is followed by obtaining a building permit, which ensures compliance with the state building code. Investors should engage with local planning departments early to understand specific requirements and identify if a zoning variance or special use permit might be necessary.

Regional Investment Spotlights

North Carolina offers diverse real estate investment opportunities across its distinct geographic regions. Each area presents unique characteristics that appeal to different investment strategies.

The Raleigh-Durham-Chapel Hill area, often referred to as the Triangle, stands out as a hub for technology, education, and healthcare. This region benefits from a strong job market, driven by institutions like Research Triangle Park and major companies. The presence of prestigious universities fuels consistent demand for rental properties and attracts a diverse, educated population.

Charlotte, a major financial center, presents a compelling case for real estate investment. The city’s robust economy, fueled by Fortune 500 companies and a flourishing job market, attracts a continuous influx of new residents. Charlotte’s diverse housing market offers varied investment options, including single-family homes, multi-family properties, and commercial real estate.

Coastal North Carolina regions offer opportunities primarily driven by tourism and seasonal demand. These areas feature beaches and lively communities, leading to steady demand for vacation rentals. Property values have shown appreciation, with high seasonal occupancy rates contributing to rental income. Investors should consider factors such as flood insurance requirements and the seasonal nature of the rental market.

The mountain regions of North Carolina attract investors seeking natural beauty, a vibrant arts scene, and a growing tourism industry. These areas are popular for vacation rentals and second homes due to their appeal to outdoor enthusiasts. Towns like Boone benefit from year-round demand due to college populations and tourism, while Asheville offers an urban-mountain blend with cultural attractions.