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By Scott Russell, Owner of Freestone Properties in Asheville, NC
North Carolina, and specifically the Asheville real estate market has have been booming since the pandemic began in March 2020, as we have seen at Freestone Properties. Asheville is known for its quirky galleries, restaurants, shops, and housing options, and being a mid-sized city has its own draws for families, couples, and individuals across the country and within the state of North Carolina.
Continue reading to learn more about why these markets are ideal for current real estate investors.
Why Invest in Asheville Real Estate?
Influx of out-of-state Buyers and Renters
Asheville is the 12th-largest city in North Carolina, reports World Population Review. The city itself continues to grow by 0.26% annually, and since 2010, its population has grown by nearly 12%. With this continuing population increase, it’s safe to say that real estate investors should look to Asheville for investment opportunities.
Mid-size cities like Asheville have also become more popular in 2020 and 2021, in particular. In fact, according to Move Buddha, North Carolina is among the top three states with the highest number of people moving to its mid-sized cities. Move Buddha also reported Asheville as one of the top mid-sized cities that people in the country were moving to, since March 2020. More out-of-state buyers and renters are moving to North Carolina and mid-sized cities like Asheville, at a faster rate than ever before.
Rising Rental Rates and Falling Rental Inventory
North Carolina’s rental rates have been rising and rental inventory has been declining. What exactly does this mean for real estate investors?
Asheville is still a relatively affordable city for renters. As of July 2021, the average monthly rent in Asheville was $1,362, with a 13% increase from 2020, says Rent Café. Additionally, rent rates were increasing throughout the entire state of North Carolina — making the state an ideal market for real estate investors.
Source: Rentcafe.com
While rent rates in Asheville and North Carolina are more expensive as a whole, the influx of out-of-state buyers and renters prove that the state, and Asheville in particular, will continue to grow and become more populated. Therefore, with less rental inventory available in Asheville, it’s important for real estate investors to look into their options now.
Booming Construction
The pandemic caused new moving patterns throughout the United States. In particular, people have chosen to move to small or mid-sized cities as well as more rural areas just outside of major cities across the country. As a result, construction in Asheville has been thriving. In March 2021, Blue Ridge Public Radio reported that more and more people want to move into the woods and mountains. In fact, from March 2020 to March 2021, “analysis of construction permits for new single family homes rose 4 percent.” This makes Asheville and other beautiful areas of North Carolina a superb new home construction area and an ideal real estate investment region.
Types of Asheville Investment Property
Multi-family Properties
Multi-family properties in Asheville are an excellent investment for those in the real estate market. Multi-family properties range in terms of location, price, and style. Flipped homes as well as buildings with several apartments fall under this category. These types of properties can be found near downtown Asheville, an excellent multi-family market for those who’d like to rent to families living in the city.
Long-Term Single-Family Rentals
Asheville consists of 38 neighborhoods and has an influx of affordable properties for real estate investors to purchase for long-term single-family rentals. As of May 2021, the sale-to-list price ratio is 100.47% and, on average, a home sells in 44 days, as reported by Realtor.com. With several excellent schools in the area and, with 52% of households in Asheville being renter-occupied (according to Rent Café) you’re sure to find renters!
Purchasing a single-family home gives a real estate investor freedom in terms of flipping the home and turning it into a stellar rental property. Those interested in the Asheville and North Carolina real estate markets can do well as a long-term single-family rental property owner. Keep in mind, too, that choosing homes in affordable and ideal locations is key.
Short-Term/AirBnb Rentals
Purchasing a vacation home as a real estate investment has become a popular venture. Before making an investment like this, however, it’s best to do research on the best spots to buy a vacation home in North Carolina. Renting a log cabin or a mountain view home in the woods or a cottage or condo in downtown Asheville are excellent options. While there are costs and restrictions associated with being a vacation home or AirBnB owner, Asheville’s beautiful scenery will continue to draw in vacationers seeking mountain views year after year.
Commercial Real Estate
With the influx of out-of-state buyers and renters in Asheville since the pandemic began, commercial real estate is also an excellent option for those interested in the North Carolina market. There are a growing number of small businesses throughout Asheville. Commercial real estate has a wide range of prices and opportunities, which gives real estate investors plenty of options when it comes to choosing what to invest in. And, according to Market Edge, a provider of building permit data, commercial permits rose 8% in 2020 compared to 2021.
Choosing Asheville Real Estate
If you’re a real estate investor, consider the Asheville and North Carolina markets. Asheville is a growing city with a lot of potential. While the rental inventory is low, there are plenty of investment opportunities available and numerous ways to become involved in the beautiful area’s real estate market.
