As is the case nationally, the dwindling supply of homes for sale in Charlotte is driving up home prices.
Housing inventory has dropped 56.9 percent over the last five years in Charlotte, according to a report released Wednesday from Trulia, a residential real estate data provider. Nationally, home inventory hit a new low in the first quarter of 2017, Trulia said.
In the Charlotte metro, inventory fell the most for trade-up homes (down 72.4 percent) and starter homes (down 69.3 percent) over the last five years.
An improved job market and high consumer confidence have driven demand for homes. Experts have said that new construction of single-family homes in the Charlotte area will help alleviate rising property costs, though it will take some time.
Nationally, the number of trade-up homes for sale fell 7.9 percent over the last year, and the number of starter homes fell 8.7 percent, according to Trulia, which analyzed property listings in the largest 100 metros.
The tight supply means homebuyers are paying more for property. Starter and trade-up homebuyers on average have to spend 2.9 percent and 1.6 percent, respectively, more of their income now compared to one year ago.
“The persistent and disproportional drop in starter and trade-up home inventory is pushing affordability further out of reach of homebuyers,” Trulia said in its report.