{"id":505114,"date":"2024-09-12T19:02:58","date_gmt":"2024-09-12T23:02:58","guid":{"rendered":"https:\/\/www.rent.com\/research\/?p=505114"},"modified":"2024-09-12T19:03:00","modified_gmt":"2024-09-12T23:03:00","slug":"charlotte-nc-college-grad-affordability","status":"publish","type":"post","link":"https:\/\/www.rent.com\/research\/charlotte-nc-college-grad-affordability\/","title":{"rendered":"Charlotte Is Relatively Affordable for Recent College Graduates Looking to Rent\u00a0"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\">Recent college grads have to pay just over 30% of their income to afford a typical one-bedroom apartment in Charlotte \u2013 one of the lowest shares in the nation<\/h3>\n\n\n\n<p>Recent college graduates have a lot to look forward to. Their future is ahead of them as they hunt for a dream job and search for a great place to live. Unfortunately, that last part can be a sticking point.&nbsp;<\/p>\n\n\n\n<p>As rents have <a href=\"https:\/\/www.axios.com\/2024\/06\/21\/high-rent-inflation-pandemic-market-relief\" rel=\"nofollow\">skyrocketed<\/a> since the pandemic, college graduates have had a <a href=\"https:\/\/www.wsj.com\/articles\/the-biggest-problem-for-recent-college-grads-a-surge-in-rent-prices-11652385510\">harder time<\/a> finding an affordable place to live. In Charlotte, recent grads must spend just over the recommended 30% of their income on rent. This is still one of the lowest shares in the nation, which goes to show how elevated asking rents are.&nbsp;<\/p>\n\n\n\n<p>So what\u2019s happening in the rental market? Why is Charlotte relatively affordable for recent college graduates? Read on to learn everything you need to know.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Recent graduates in Charlotte have to pay just over 30% of their income on rent to live alone<\/h2>\n\n\n\n<p>Recent college graduates have to spend 32.5% of their income to afford a one-bedroom apartment (\u201clive alone\u201d) in Charlotte, NC. This is the sixth-lowest share in the nation. Affordability has improved since 2023, when a graduate needed to spend 37.5% of their income on rent.&nbsp;<\/p>\n\n\n\n<p>Even though Charlotte is affordable compared to most other large metros, recent grads still have to spend more than 30% of their income on housing, which qualifies as \u201c<a href=\"https:\/\/www.huduser.gov\/portal\/pdredge\/pdr_edge_featd_article_092214.html\">rent-burdened<\/a>.\u201d<\/p>\n\n\n\n<p><strong>Charlotte is relatively affordable because of its low asking rents and moderate median salary<\/strong>. The median rent in Charlotte is below the national median, sitting at $1,371. The median salary is $57,866, just below the national median.<\/p>\n\n\n\n<p>Charlotte\u2019s affordability gets better when looking at renting with a roommate (i.e. renting a two-bedroom apartment), where the typical grad needs to spend just 18.7% of their income on rent.&nbsp;<\/p>\n\n\n\n<p>Charlotte has actually seen a decline in asking rents over the past few months, following <a href=\"https:\/\/www.wbtv.com\/2024\/02\/13\/year-renter-rent-charlotte-beginning-fall-more-housing-available\/\">years of rapid increases.<\/a> And fewer people live in poverty, meaning <a href=\"https:\/\/spectrumlocalnews.com\/nc\/charlotte\/news\/2024\/02\/27\/rent-price-decrease-\">more can afford rent<\/a>. Across the entire city\u2019s population, <a href=\"https:\/\/datausa.io\/profile\/geo\/charlotte-nc\/\">11.7%<\/a> of residents live below the poverty line, which is a <a href=\"https:\/\/ui.charlotte.edu\/story\/poverty-rates-decline-charlotte-region\/\">significant improvement<\/a> from 2017 and on par with the nationwide rate of <a href=\"https:\/\/www.census.gov\/newsroom\/stories\/poverty-awareness-month.html\">11.5%<\/a>.&nbsp;<\/p>\n\n\n\n<p>North Carolina on the whole has gotten <a href=\"https:\/\/www.newbernsj.com\/news\/business\/five-year-rent-increase-of-69-an-example-of-staggering-nc-housing-costs\/article_088a3f23-2e5c-510b-89bb-10cc043268ce.html\">much more expensive<\/a> since the pandemic, though, putting a massive strain on renters \u2013 a majority of whom often have less <a href=\"https:\/\/www.urban.org\/urban-wire\/wealth-gap-between-homeowners-and-renters-has-reached-historic-high\">accumulated wealth<\/a>. Many metros have risen in price so quickly that they\u2019re now <a href=\"https:\/\/www.charlotteobserver.com\/news\/state\/north-carolina\/article288795535.html\">considered overvalued<\/a>. Statewide, <a href=\"https:\/\/ncimpact.sog.unc.edu\/2024\/04\/north-carolinas-housing-shortage\/\">43%<\/a> of renter households spend more than 30% of their income on rent.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Nationwide recent college graduate rental affordability<\/h2>\n\n\n\n<p>Nationwide, recent college grads have to pay 35.7% of their income to afford a one-bedroom apartment. This is down from 39% in 2023, underscoring how rents have stabilized and wages have increased in the past year. Let\u2019s dig a bit deeper.<\/p>\n\n\n\n<p>Generally, asking rents have <a href=\"https:\/\/www.redfin.com\/news\/redfin-rental-report-january-2024\/\">held steady<\/a> since late 2023, due to a <a href=\"https:\/\/www.redfin.com\/news\/redfin-rental-report-march-2024\/\">surge<\/a> of new construction buoying supply and <a href=\"https:\/\/www.redfin.com\/news\/housing-migration-trends-november-2023\/\">waning<\/a> pandemic-era migration hampering demand. This is a major reason why most metros became more affordable for recent college grads in the past year. An <a href=\"https:\/\/www.brookings.edu\/articles\/we-should-focus-on-rising-wages-not-just-inflated-prices\/\">increase<\/a> in wages, <a href=\"https:\/\/www.epi.org\/publication\/swa-wages-2023\/\">especially<\/a> among low-income groups, has also helped improve affordability \u2013 even <a href=\"https:\/\/www.bankrate.com\/banking\/federal-reserve\/wage-to-inflation-index\/\">outpacing<\/a> historic inflation.&nbsp;<\/p>\n\n\n\n<p>However, even though new apartment construction has helped satiate demand, much of it has been catered to higher-income renters. From 2012-2022, an additional 8.4 million units rented for more than $1,400\/month, compared to a <em>decrease<\/em> of 2.1 million units renting for less than $600\/month. $1,400\/month is an unaffordable rent for a <a href=\"https:\/\/www.npr.org\/2024\/01\/25\/1225957874\/housing-unaffordable-for-record-half-all-u-s-renters-study-finds\">majority of Americans<\/a>. And while wages have risen faster than inflation, rents climbed <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-05-07\/us-rents-climbed-1-5-times-faster-than-wages-in-last-four-years\">even faster<\/a> in large metros from 2019-2023, seriously straining budgets.&nbsp;<\/p>\n\n\n\n<p>Even still, America\u2019s renter population is growing three-times faster than its homeowner population, in part because house prices are at record highs. <a href=\"https:\/\/www.redfin.com\/news\/renters-becoming-homeowners-2024\/\">Nearly 40%<\/a> of U.S. renters don\u2019t believe they\u2019ll ever own a home. Mortgage rates <a href=\"https:\/\/www.redfin.com\/blog\/is-now-a-good-time-to-buy-a-house\/\">have been falling<\/a> recently, though, providing a glimmer of hope.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Metro-level highlights&nbsp;<\/h2>\n\n\n\n<p>Nationwide, 29 out of the 33 metros analyzed require recent college graduates to spend more than 30% of their income on rent for a one-bedroom apartment. The four most expensive are <a href=\"https:\/\/www.rent.com\/new-york\/new-york\/apartments_townhouses_condos_houses\">New York<\/a> (56.3%), <a href=\"https:\/\/www.rent.com\/california\/los-angeles\/apartments_townhouses_condos_houses\">Los Angeles<\/a> (54.9%), <a href=\"https:\/\/www.rent.com\/massachusetts\/boston\/apartments_townhouses_condos_houses\">Boston<\/a> (54.8%), and <a href=\"https:\/\/www.rent.com\/california\/riverside\/apartments_townhouses_condos_houses\">Riverside<\/a> (53.7%).&nbsp;<\/p>\n\n\n\n<p>These trends flip when looking at two-bedroom apartments: 27 out of 33 metros are <em>affordable <\/em>to recent grads, with just the most expensive coastal metros requiring more than 30% of a grad\u2019s income.<\/p>\n\n\n\n<p>One of the most interesting metros in the dataset is Austin, which went from unaffordable (35.2%) to affordable (28.3%) in one year. This makes sense; Austin was the poster child for booming metros during the pandemic, seeing <a href=\"https:\/\/www.redfin.com\/news\/q4-2020-housing-migration-trends\/\">a huge surge in migration<\/a> from 2020 to mid-2022. This flood of new money and demand led to <a href=\"https:\/\/www.newsweek.com\/austin-housing-market-sinking-1843057\">skyrocketing housing costs<\/a>, large inflation increases, and a <a href=\"https:\/\/www.redfin.com\/news\/america-building-fewer-apartments-2024\/\">surge in new construction<\/a>. However, once the sharp interest rate hikes and return-to-office mandates started in 2023, the city\u2019s fortunes reversed, leading to price drops and <a href=\"https:\/\/www.redfin.com\/news\/housing-migration-trends-q3-2023\/\">population loss<\/a>. Now, some property managers are <a href=\"https:\/\/www.redfin.com\/news\/rents-fall-in-florida-austin-june-2024\/\">having to compete<\/a> for tenants.<\/p>\n\n\n\n<p>San Jose is surprisingly affordable to new grads, despite having the highest rents in the country. This is because a lot of recent grads in the Bay Area are working high-paid Silicon Valley tech jobs, making <a href=\"https:\/\/sanjosespotlight.com\/san-jose-leads-nation-in-hiring-new-college-grads\/\">six-figures<\/a> right out of college. The median salary for recent grads in San Jose is $108,449, for example.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">10 Most Affordable Metros for Recent College Graduates<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Metro<\/strong><\/td><td><strong>2024: Share of income college grads need to spend for 0-1 bedroom apartment<\/strong><\/td><td><strong>2023: Share of income college grads need to spend for 0-1 bedroom apartment<\/strong><\/td><td><strong>2024: Share of income college grads need to spend for 2 bedroom apartment<\/strong><\/td><td><strong>2023: Share of income college grads need to spend for 2 bedroom apartment<\/strong><\/td><td><strong>Estimated median salary of recent college grads<\/strong><\/td><td><strong>Median asking rent: 0-1 bedrooms<\/strong><\/td><td><strong>Median asking rent: 2 bedrooms<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/www.rent.com\/texas\/houston\/apartments_townhouses_condos_houses\">Houston, TX<\/a><\/td><td>27.0%<\/td><td>25.2%<\/td><td>17.2%<\/td><td>17.5%<\/td><td>$60,277<\/td><td>$1,142<\/td><td>$1,449<\/td><\/tr><tr><td><a href=\"https:\/\/www.rent.com\/michigan\/detroit\/apartments_townhouses_condos_houses\">Detroit, MI<\/a><\/td><td>27.8%<\/td><td>28.9%<\/td><td>17.3%<\/td><td>19.2%<\/td><td>$60,277<\/td><td>$1,193<\/td><td>$1,148<\/td><\/tr><tr><td><a href=\"https:\/\/www.rent.com\/texas\/austin\/apartments_townhouses_condos_houses\">Austin, TX<\/a><\/td><td>28.3%<\/td><td>35.2%<\/td><td>17.2%<\/td><td>21.2%<\/td><td>$62,688<\/td><td>$1,310<\/td><td>$1,595<\/td><\/tr><tr><td><a href=\"https:\/\/www.rent.com\/ohio\/cincinnati\/apartments_townhouses_condos_houses\">Cincinnati, OH<\/a><\/td><td>29.9%<\/td><td>28.9%<\/td><td>16.9%<\/td><td>16.9%<\/td><td>$59,071<\/td><td>$1,240<\/td><td>$1,400<\/td><\/tr><tr><td><a href=\"https:\/\/www.rent.com\/texas\/dallas\/apartments_townhouses_condos_houses\">Dallas, TX<\/a><\/td><td>30.5%<\/td><td>35.4%<\/td><td>19.3%<\/td><td>22.6%<\/td><td>$66,305<\/td><td>$1,347<\/td><td>$1,707<\/td><\/tr><tr><td><a href=\"https:\/\/www.rent.com\/north-carolina\/charlotte\/apartments_townhouses_condos_houses\">Charlotte, NC<\/a><\/td><td>32.5%<\/td><td>37.5%<\/td><td>18.7%<\/td><td>21.9%<\/td><td>$57,866<\/td><td>$1,371<\/td><td>$1,580<\/td><\/tr><tr><td><a href=\"https:\/\/www.rent.com\/arizona\/phoenix\/apartments_townhouses_condos_houses\">Phoenix, AZ<\/a><\/td><td>32.9%<\/td><td>38.0%<\/td><td>19.8%<\/td><td>22.9%<\/td><td>$56,660<\/td><td>$1,369<\/td><td>$1,647<\/td><\/tr><tr><td><a href=\"https:\/\/www.rent.com\/indiana\/indianapolis\/apartments_townhouses_condos_houses\">Indianapolis, IN<\/a><\/td><td>33.4%<\/td><td>34.6%<\/td><td>18.5%<\/td><td>21.4%<\/td><td>$54,249<\/td><td>$1,317<\/td><td>$1,460<\/td><\/tr><tr><td><a href=\"https:\/\/www.rent.com\/georgia\/atlanta\/apartments_townhouses_condos_houses\">Atlanta, GA<\/a><\/td><td>33.4%<\/td><td>38.0%<\/td><td>19.6%<\/td><td>21.2%<\/td><td>$60,277<\/td><td>$1,416<\/td><td>$1,663<\/td><\/tr><tr><td><a href=\"https:\/\/www.rent.com\/florida\/jacksonville\/apartments_townhouses_condos_houses\">Jacksonville, FL<\/a><\/td><td>34.0%<\/td><td>45.8%<\/td><td>20.0%<\/td><td>25.5%<\/td><td>$54,249<\/td><td>$1,293<\/td><td>$1,524<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Table sorted by average share of 0-1 bedroom rentals affordable to recent college graduates<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Methodology<\/h2>\n\n\n\n<p>According to a <a href=\"https:\/\/www.redfin.com\/news\/college-grad-rent-burden-2024\/\">Redfin analysis<\/a> analyzing rents in apartments with five or more units from Redfin.com and Rent.com through July 2024. The analysis estimated 2024 salaries for employed college graduates aged 22-29 (\u201crecent college grads\u201d) using U.S. Census Bureau\u2019s 2022 American Community Survey data and 2023-2024 wage growth data from the Atlanta Federal Reserve. To be included, a grad must have had an annual income of at least $15,000 at the time of the survey.&nbsp;<\/p>\n\n\n\n<p>An \u201caffordable\u201d rental is defined as one where the asking rent is no more than 30% of the local estimated income for recent college grads. Graduates who rent apartments above the 30% cutoff are considered \u201crent burdened.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The typical recent college grad has to spend 36% of their income on rent. In Charlotte, the amount recent grads need to spend is lower, at just over 30%. So, why is the area relatively affordable? <\/p>\n","protected":false},"author":1022,"featured_media":484382,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19835,19832,19828],"tags":[],"topics":[195,202],"renters":[],"cities":[],"propertymanagement":[],"class_list":["post-505114","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-trends","category-renting-trends","category-research","topics-data-research","topics-news-trends"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.1 (Yoast SEO v24.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Charlotte Is Relatively Affordable for Recent College Grads | Rent. Research<\/title>\n<meta name=\"description\" content=\"The typical recent college grad has to spend 36% of their income on rent. But in Charlotte, the share is just over 30%. 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