the Charlotte MSA. Further, the growth rate in median rents in these high-rent MSAs tends to be high: Denver, Austin, and Portland each have annual growth rates above 6%. On the national stage, the Charlotte MSA median rent is moderate. Of the twelve MSAs compared, the Charlotte MSA has the fifth-lowest median rent. Its median rental growth rate of 1.70% also puts it at the lower end of the distribution.
Figure IV.9 Regional Competitor MSAs Median Rents 2019 and Growth Rate from 2018 to 2019 1400 1200
12.00% 10.42%
10.00%
800 600
6.00% 4.00% 2.44%2.00%
-0.09%
-1.14%
200
3.31%
2.49%
1.70%
400
0
8.00%
7.13%
1000
-2.00% -3.77%
Asheville
Charleston
Charlotte
0.00%
-4.00%
Columbia Greensboro
Raleigh
Richmond Spartanburg Wilmington
-6.00%
Source: CKCRE tabulations of US Census Bureau ACS 1-year estimates.
F. Price to Rent Ratio A common metric used to measure the relative value of buying versus renting a home is the Price to Rent Ratio, which is the ratio of the median home price in a region to the median annual rent in the region. That is:
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A higher ratio means that home prices are high relative to rents, and a low ratio means home prices are inexpensive relative to rents. When the ratio is high it means that a region is more
The State of Charlotte Housing Report 2020
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