The real estate markets in Raleigh and Charlotte, North Carolina remain among the the hottest in the country – and that is great news for local Self-Directed Real Estate IRA investors. In fact, North Carolina – including Raleigh and Charlotte in particular – is one of the best Self-Directed Real Estate IRA markets anywhere.
The North Carolina city took the #2 spot in this year’s “Hottest Housing Markets for 2018” report from Zillow, which looks at house price appreciation trends, rental prices, regional income growth, prospects for employment and low unemployment rates. Self-Directed Real Estate IRA investors have benefitted from a Raleigh economy that is firing on all cylinders, say analysts.
Charlotte, North Carolina, also fared very well, coming in as the fourth hottest market in the country, according to Zillow’s researchers.
All in all, Zillow ranked the country’s hottest markets as follows:
- San Jose, California
- Raleigh, North Carolina
- Seattle, Washington
- Charlotte, North Carolina
- San Francisco, California
- Austin, Texas
- Denver, Colorado
- Nashville, Tennessee
- Portland, Oregon
- Dallas, Texas
Continued growth in the technology industries fueled Raleigh’s housing market strength.
Yes, there is lots of technology in and around Silicon Valley, which explains San Francisco, San Jose and Seattle on that list. But Raleigh has something none of those markets can come even close to matching: Lots of room to run.
Because while people are actually fleeing those other cities as the cost of living continues to escalate, Raleigh can lay claim to being one of the most affordable cities in the country for renters. That’s an important metric for Self-Directed Real Estate IRA investors, who depend on being able to find qualified renters who can afford to pay their monthly rents on time and consistently. Evictions are frustrating, costly and damaging to both the tenant and the landlord. And in a mature market, values in San Francisco and San Jose have lots of room to fall.
The Raleigh market is much more affordable and sustainable for Self-Directed Real Estate IRA owners.
Currently, the median monthly rent payment in Raleigh is $1,441, which equates to just 22.9 percent of the median household income, ranking it the fourth most affordable market for renters in the country – again according to data from Zillow.com.
And once again, Charlotte, North Carolina fares very well using this metric, as well: Zillow ranks Charlotte as the ninth most affordable market in the United States, with an average rent of $1,301, representing 24.7 percent of the median monthly income.
In contrast, the least affordable major metro markets for renters were:
- Los Angeles, California, where the $2,759 median rent equals 47.6 percent of the median monthly income;
- Miami-Fort Lauderdale, Florida, where the $1,867 median rent equals 42 percent of the median monthly income;
- San Diego, California, where the $2,549 median monthly rent equals 40.8 percent of the median monthly income;
- San Francisco, California, where the $3,425 median monthly rent equals 39.7 percent of the median monthly income, and;
- New York, New York, where the $2,401 median monthly rent equals 38.3 percent of the median monthly income.
North Carolina also takes the edge for much lower state income taxes compared to California.