More people renting apartments in the Charlotte area is increasingly becoming the trend, fueled by a weak home-buying market.
The tepid housing market has given people less confidence in buying as opposed to renting. Monthly mortgage costs are averaging roughly $1,000, according to Real Data.
The tipping point is where it’s more affordable in theory to buy a house than it will be to rent an apartment. In Charlotte, we’re not anywhere near that.
Other factors in the housing market drive people to rent as well. For those moving to Charlotte who have homes they can’t sell in other markets, renting is a viable option, and for people who can’t qualify for mortgages, it might be the only option.
“The lenders have really tightened up their qualifying standards,” said Ken Szymanski, executive director of the Greater Charlotte Apartment Association.
Better economic fundamentals have started to emerge, like increasing demand and job creation. Ups and downs in the market are always tied to economic indicators – jobs, wages, housing and the like – but 2012 has been the “perfect storm” in terms of the demand for apartment living to increase significantly.
Although a rise in demand is potentially a sign that people can afford higher rent, that doesn’t necessarily mean everyone is doing better financially; the apartment market is affected by a broad range of demographics.
Twenty-somethings continue to be probably the biggest driver for apartment demand.
But many young people are already facing high costs of living and record high student loan debt. That debt surpassed credit card debt for the first time in 2010.
Right now, the apartment market is hot. The amount of people who want to rent are such that it justifies new construction.
Ben Collins, regional director for a Charlotte-based development company, said he feels comfortable with the amount of new apartment projects and believes demand will continue to be high.
For information on renting an apartment in Mooresville, NC, a community outside of Charlotte on Lake Norman, contact Abberly Green.