The following report by Jenna Martin of the Charlotte Business Journal outlines the struggles of buying a home in the Charlotte market.
Let the Sanders Realty Team help to remove the struggle and make buying your next home a smooth painless process!
For renters in Charlotte looking to transition into homeownership, the process isn’t an easy one, according to a new Zillow report.
Out of the nation’s largest rental markets researched by Zillow, Charlotte ranked as the 10th-worst metro for renters qualified to purchase a home. Data compiled by the Seattle-based online real estate firm showed that just 9.8% of people searching for a rental unit had sufficient credit scores and incomes to afford a residence of median value ($162,300) in the Queen City. That’s about the same percentage of residents in Charlotte who can afford the median rental price.
Zillow tallied Charlotte’s homeownership rate at 61.3%. The company said that big cities with higher homeownership rates, like Charlotte, have lower shares of renters with both strong credit and high incomes.
Other markets with the highest share of residents financially unstable to buy a home include the Southern cities of Houston, Dallas-Fort Worth, Texas and Atlanta. The full list can be found below.
Alternatively, seven of the 10 top metros where people can afford the requirements of purchasing a residence are located in the western portion of the country. San Jose, Calif., San Francisco, San Diego and Los Angeles claimed the top spots, respectively.
Zillow determined the rankings by examining the self-reported credit scores and incomes of those looking for a rental unit during the first half of the year. The company then calculated regional median rental and home values as well as competition to find markets with the highest share of renters who reported a monthly income equal to or greater than required for affording a typical rental and median home in each metro area.
Zillow noted in its report that demographic trends are impacting renter qualifications and competition as young adults are renting longer and delaying home purchases.
“When faced with hurdles of high prices and low inventory, first-time homebuyers are renting longer than ever before even if they are qualified to buy,” Zillow Chief Economist Svenja Gudell said in the report.” San Jose, San Diego and Seattle are among the most competitive places for buyers, and the going isn’t any easier for renters – as they are competing against throngs of financially sound applicants with strong credit and high incomes. This is a conundrum for many young people who move to those cities because of their strong job markets, only to find tight inventory and steep competition standing between them and their dream home.”
These are the 10 markets with the lowest share of renters qualified to buy a home:
- Houston: 6.8%
- Indianapolis: 7.2%
- Cleveland: 7.9%
- Dallas-Fort Worth, Texas: 8.2%
- Kansas City, Mo.: 8.9%
- Detroit: 8.9%
- Baltimore: 8.9%
- Atlanta: 9.3%
- Phoenix: 9.5%
- Charlotte: 9.8%
Call the Sanders Realty Team to stop renting and begin owning – 704-909-9337
