$1 million homes are becoming Charlotte’s new normal

Why it matters: Home-price growth helps homeowners build generational wealth, and the growth locally underscores that Charlotte remains a desirable place to live. But as home prices surge across the region, homeownership is becoming increasingly unattainable for many Charlotteans.

By the numbers: According to data from Canopy MLS, the total number of homes sold in the Charlotte region for $1 million or more in 2018 was 648. The total number of homes sold in the Charlotte region for $1 million or more in 2022 was 2,012.

What’s happening: The number of higher-end homes on the market has risen as home prices overall rise in the Charlotte region. They’ve also risen as families from all over the country — especially in more expensive markets like California and New York — move here, according to Tiffany Johannes, president of Canopy MLS.

• Of note: The Charlotte region, per Canopy, includes Alexander, Anson, Cabarrus, Catawba, Cleveland, Gaston, Iredell, Lincoln, Mecklenburg, Rowan, Stanly and Union counties in North Carolina, and Chester, Chesterfield, Lancaster and York counties in South Carolina.
• The surge in million-dollar-plus listings has been happening all over — from Myers Park to SouthPark to Waxhaw, per Johannes.

“When you look at the growth of Charlotte, almost every community has seen growth in their [home] prices. These million-dollar-plus homes have seen more demand from people moving into our area with more money to spend,” Johannes tells Axios.

Between the lines: At Corcoran HM Properties in Charlotte, the average sale price four or so years ago was around $575,000 to $600,000, according to Valerie Mitchener, the group’s owner. Last month, the average was $1 million.

• Part of the reason the numbers are skewing much higher: The inventory of starter homes is extremely low in the Charlotte area.

Corporate relocations — from Honeywell to the Truist merger — have driven a lot of the price increases in the city of Charlotte, per Mitchener. On top of that, many of the working professionals moving here are coming from places like New Jersey, where hour-plus commutes into work are routine. That explains why Mitchener has been seeing increased interest in father-out areas, such as Hickory, Mooresville and even Winston-Salem.

• “Especially when people don’t have to go in five days a week — they don’t mind driving to have a less expensive house and more land,” she adds.

Yes, but: Recent growth prices out plenty of Charlotte residents. It’s increasingly challenging for some working professionals, such as teachers and firefighters, to find homes in the $200,000-$300,000 range.

• “We have to also focus on affordability and [whether] everyone who lives here can purchase a home,” Johannes says.