Despite significant disparities in rising home prices versus wage growth North Carolina’s appeal remains strong.
Housing Affordability Challenges Persist in North Carolina
A recent study by WCNC highlighted North Carolina as the 10th state with the largest gap between rising home prices and wage growth. Wages in the state increased by nearly 25%, while housing prices surged by over 47% between 2018 and 2022. This disparity is evident in the stark difference: housing costs rose by $100,000 on average while wages only went up by $12,500.
David Hoffman, a prominent Charlotte real estate figure wasn’t surprised by North Carolina’s continuing housing price increases. He attributed this trend to the state’s growing appeal for living, working, and raising families. Hoffman pointed out that many new residents particularly retirees and empty-nesters moving from states like Florida bring substantial resources from higher-paying jobs elsewhere enabling them to afford more expensive homes in North Carolina.
(photo: Forbes)
North Carolina’s Balanced Growth Amidst Housing Challenges
Hoffman also noted that despite the housing affordability challenge, North Carolina’s wage growth nearly matches the national average. He expressed optimism about the state’s attractiveness to new residents, citing its position as one of the top five relocation destinations. The study covered data from the pandemic era during which many sought spacious living at a relatively lower cost in North Carolina although many newcomers retained their high-paying jobs from northern states contributing to local housing price inflation.
As North Carolina navigates these economic dynamics, Hoffman remains cautiously hopeful about its appeal to new residents. He emphasized that despite the economic challenges people continue to be drawn to the state not just for economic reasons but also for its overall lifestyle.
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