Record-high income now needed to afford typical Charlotte-area home, study finds
AI-generated summary reviewed by our newsroom.
- Charlotte buyers now need $104K to afford a median-priced $426K home.
- Median income of $80.5K limits affordable home options to under $360K.
- Rising prices and limited inventory squeeze affordability despite aid programs.
As home prices continue to increase in the Charlotte region, so does the salary needed to afford a home.
That’s a key takeaway from a recent report on home affordability in the nation. Potential Charlotte homebuyers need to make $104,443 to afford the median-priced home of about $426,000, according to a report from Redfin Real Estate.
That’s a record for the region, and represents a 1.3% year-over-year salary increase, the report noted. And it's another sign that homeownership remains out of reach for many Charlotteans, especially when the median household income in the city is about $80,500, according to census data.
Daryl Fairweather, Redfin’s chief economist, said $104,000 “is just incredibly out of reach for a lot of the locals in Charlotte.
“Rule of thumb is you shouldn’t spend more than 30% of your income on your monthly housing expenses… Only a third of listings were affordable to the median income households in Charlotte (in June).”
Charlotte MSA’s July housing numbers
With an $80,500 annual income, a potential homebuyer could afford a property between $240,000 and $360,000, according to Rocket Mortgage. That is an estimate not taking into consideration credit scores, down payment or existing debt.
A quick 30-day Zillow search for Charlotte showed about 230 homes were for sale with an asking prices of $360,000, or less, out of about 760 results. The cheapest home is listed for $124,900 in the Thomasboro-Hoskins neighborhood in north Charlotte. (Here’s the most expensive for over $14.9 million .)
A quick dive into the July housing numbers show the median home price in the Charlotte metropolitan area was about $426,500, according to a Homes.com news release.
That’s a 2.8% increase from last year and the largest year-over-year increase the MSA has seen since March, according to the release.
Narrowing the figure down, the median price for a single-family home was $448,500 last month, while the townhome price sat at $359,990.
What do these numbers mean for Charlotte homebuyers?
The numbers are stark and they replicate recent findings regarding rentals.
According to the National Low Income Housing Coalition’s “Out of Reach” report, a person earning the state’s $7.25 hourly minimum wage would need to work 175 hours to afford a one-bedroom apartment in the Charlotte region.
A possible upside is that the salary needed to afford homeownership is increasing slower than the national increase of over 2%, Fairweather said.
And from a national perspective, Fairweather said, Charlotte is relatively affordable, and the numbers aren’t increasing at rapid rates.
There are also several homebuyer assistant assistance programs offered by the city and a number of banks.
House Charlotte offers qualified first-time homebuyers several loan options that provide up to $80,000 in assistance for down payment, closing costs and interest rate buy-downs.
Fairweather said she’s watching several things that could impact the housing market and affordability:
- The amount of available housing: Fairweather said one of the reasons Charlotte is able to remain relatively affordable is because the city has a higher construction pace and a favorable environment for builders. “Charlotte should continue to build homes,” Fairweather said. “Otherwise you end up with much worse affordability like you see in say coastal cities.”
- How tariffs may affect inflation: The tariff situation remains unclear but the latest is an extended pause between the United States and China. But for homebuyers, Fairweather said if tariffs begin to affect inflation, the Federal Reserve can’t cut interest rates, which has an effect on mortgage rates. “It’ll take a long time for these tariffs to work their way through the economy. We also don’t know how long they’re going to last,” Fairweather said.
- Apartment construction is slowing: Fairweather said the apartment construction boom from the pandemic is over. Once vacancy rates start to fall, rent prices will go up. If that occurs, more people may pivot to home ownership. Fairweather said if a person can afford a home now, the apartment scenario may be one to consider. “If you wait, there is a downside,” Fairweather said. “If you continue to rent, you may end up paying more in rent. Then if you buy later, you might end up paying a higher price.”
Overall, Fairweather said purchasing a home depends solely on a homebuyer’s finances and life status. If one can afford it, truly, go for it, Fairweather said.
This story was originally published August 22, 2025 at 5:46 AM.
