Strong Yields and Favorable Market Fundamentals
Average gross yields across North Carolina range from 9.1% to 9.9%3, which is above the national average of 9.0%.4 When it comes to underlying fundamentals that drive Single-Family Rental investment returns (job growth, household growth, income growth), NC is steady. All three metro areas have seen steady population increases as more jobs and affordable homes draw people to the region. Companies that have recently moved into or expanded in the NC market include Owens Corning, BMW, and Pepsi.
Home values in the market are now above or near prior peak value. Employment is a key factor that supports growth throughout North Carolina, and all three metros have unemployment rates below or near the national average.
Metropolitan-area specific highlights:
Winston-Salem: Home prices in Winston-Salem have continued to rise for some years, but are still 6% below the prior peak5, on average. We expect home prices to rise in the high-single digits over the next three years.
Greensboro: Home prices in Greensboro have also continued to rise in a similar fashion to Winston-Salem and are currently 4% below the prior peak6, on average. We expect home prices to rise in the high-single digits over the next three years.
Charlotte: Home prices in Charlotte have continued to rise for some years and are trending 5% above the prior peak7. Despite the strong growth, Charlotte's home values are expected to rise 13% over the next three years8, making it one of the strongest markets in the U.S.