Charlotte townhome boom backfires
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Charlotte has reached a new record in the supply of townhomes, but many are still sitting on the market or selling for less, Homes.com's latest report shows.
Why it matters: Townhome construction became popular amid soaring land costs. But with a median price of $349,450, a townhouse in a less walkable area with limited amenities can't always compete with a single-family house, explains Chuck McShane, senior director of market analytics.
By the numbers: Townhome sales plummeted nearly 14% compared to this time last year, while listings increased 18.9% to just over 2,000 in March. That's up from just 900 in March 2022.
- Prices have decreased about $8,000 (2.2%) from last year.
The big picture: Rising supply and softening demand for townhomes, in particular, is dragging Charlotte's overall median home price down by 0.5%, contributing to the market's first year-over-year price drop since January 2024.
- Single-family prices were flat ($425,000), and condos rose 2.5% ($302,750).
Charlotte's overall home sales also saw one of the steepest slides in the country, falling 7.6% in March.
- Part of that can be blamed on an unusually snowy February, pushing closings back.
Yes, but: "We've also seen job growth slow down during the first few months of 2026 across most sectors except professional services," McShane says. "That could be keeping some middle-income buyers on the sidelines."