The “Queen City,” Charlotte, NC, is a charming city with a vibrant downtown area, rich history, and easy access to nature. With attractions like the NASCAR Hall of Fame, Freedom Park, and the Spectrum Center, Charlotte lives up to its motto, “Charlotte’s Got a Lot.”
If you’re looking to rent an apartment in Charlotte, you’ll find that the average rent for a studio is $1,449 while a one-bedroom apartment is $1,497. But don’t worry, we’ve got you covered. ApartmentGuide has gathered a list of the most affordable neighborhoods in Charlotte to rent this year.
8 Affordable Neighborhoods in Charlotte, NC
From Elizabeth to Westside, Charlotte has affordable neighborhoods that fit your budget. The best part is that they’re all under Charlotte’s average rent for studio and one-bedroom units. Let’s jump in and see what Charlotte neighborhoods made the list.
1. Elizabeth 2. Westside 3. Eastside 4. Southwest Charlotte 5. Olde Whitehall 6. Harris – Houston 7. Myers Park 8. NoDa
Read on to see what each neighborhood has to offer its residents.
1. Elizabeth
Average studio rent: $1,395 Average 1-bedroom rent: $950 Apartments for rent in Elizabeth
Elizabeth is the most affordable neighborhood in Charlotte, as the average rent for a one-bedroom unit is $950. There are many reasons to love living in Elizabeth, from attractions like the Mural House and the Dale F. Halton Theater to green spaces like Independence Park. If you’re looking for a taste of the neighborhood, there are a variety of local restaurants to explore along Elizabeth Avenue. There are plenty of buses and light rail stops for renters living in Charlotte without a car.
Learn more about the Elizabeth neighborhood in Charlotte.
2. Westside
Average studio rent: $950 Average 1-bedroom rent: $1,020 Apartments for rent in Westside
Westside is a bustling area that’s just west of downtown Charlotte. This affordable neighborhood has many attractions, such as the Charlotte Douglas International Airport, the U.S. National Whitewater Center, and Hornets Nest Park. It’s an expansive neighborhood encompassing many smaller sub-neighborhoods, so there are plenty of places to explore if you’re new to Charlotte.
3. Eastside
Average studio rent: $925 Average 1-bedroom rent: $1,124 Apartments for rent in Eastside
With an average one-bedroom rent of $1,124, Eastside is the third-most affordable neighborhood in Charlotte. This neighborhood is an awesome option to consider as it’s home to attractions like the Charlotte Museum of History and McAlpine Creek Park. There are also picturesque views of the surrounding areas, and it’s close to downtown, so it’s a great area to explore Charlotte.
4. Southwest Charlotte
Average studio rent: $1,074 Average 1-bedroom rent: $1,307 Apartments for rent in Southwest Charlotte
Southwest Charlotte is the fourth-most affordable neighborhood in the city. This neighborhood is a great option if you’re looking for access to plenty of shops and restaurants, alongside lush green spaces. For example, you can easily access the Rivergate shopping center and Carowinds, an amusement park located along the North Carolina/South Carolina border. You can also explore the expansive McDowell Nature Preserve along Lake Wylie.
5. Olde Whitehall
Average studio rent: $1,290 Average 1-bedroom rent: $1,381 Apartments for rent in Olde Whitehall
Olde Whitehall is a stellar neighborhood if you want to live a little closer to the city center. The area has several shopping centers, like the Charlotte Premium Outlets, and nature preserves, like Berewick Park and Renaissance Park. This is a great area for renters with cars as there are several freeways, like I-485 and State Highway 49.
6. Harris – Houston
Average studio rent: $1,025 Average 1-bedroom rent: $1,481 Apartments for rent in Harris – Houston
Next up is Harris – Houston, the sixth-most affordable neighborhood in Charlotte. Harris – Houston is full of history and charm with tree-lined streets and creeks. This area also has plenty of parks, restaurants, and attractions, like the PNC Music Pavilion, so you’ll have lots to explore. Make sure to enjoy the outdoors at Kirk Farm Fields Park or grab a meal at one of the neighborhood restaurants. There’s something for everyone living in Harris – Houston.
7. Myers Park
Average studio rent: $1,329 Average 1-bedroom rent: $1,495 Apartments for rent in Myers Park
Nestled south of downtown, Myers Park is the seventh-most affordable neighborhood in Charlotte. Myers Park has a community feel, with plenty of local cafes and restaurants along Selwyn Avenue, such as Fenwick’s and Volo’s Ristorante. You can also check out some of Myers Park’s green spaces like Freedom Park or the historic landmarks like Elizabeth Lawrence House & Garden and The Duke Mansion.
Learn more about the Myers Park neighborhood in Charlotte.
8. NoDa
Average studio rent: $1,433 Average 1-bedroom rent: $1,452 Apartments for rent in NoDa
NoDa takes the eighth spot on our list of most affordable neighborhoods in Charlotte. The average rent for a one-bedroom unit is roughly $40 less than the city’s average, making NoDa a great option. It’s about 3 miles from downtown, so you’ll have the best city life without living in the city center. NoDa is home to the NoDa Historic Arts District and the Blackbox Theatre, meaning there’s plenty to do throughout the week. You’ll find countless historic buildings in NoDa, so make sure to explore the area’s charm. NoDa has a lot of local restaurants and bars along North Davidson Street, so there’s always something new to explore. If you need to commute to work, there are many options, as the Lynx Blue Line is nearby.
Learn more about the NoDa neighborhood in Charlotte.
Methodology: Affordability based on whether a neighborhood has average studio and 1-bedroom rent prices under the city’s average. Average rental data from Rent.com in March 2024.
LOS ANGELES (AP) — The spring homebuying season is off to a sluggish start as home shoppers contend with elevated mortgage rates and rising prices.
Sales of previously occupied U.S. homes fell 4.3% in March from the previous month to a seasonally adjusted annual rate of 4.19 million, the National Association of Realtors said Thursday. That’s the first monthly decline in sales since December and follows a nearly 10% monthly sales jump in February.
Existing home sales also fell 3.7% compared with March last year. The latest sales still came in slightly higher than the 4.16 million pace economists were expecting, according to FactSet.
A modest pullback in mortgage rates early this year helped lift home sales in January and February, but rates mostly ticked up in February and March, when many of the home sales that were finalized last month would have taken place.
AP correspondent Shelley Adler reports on the spring homebuying season.
Mortgage rates have risen the past three weeks, with the average rate on a 30-year mortgage moving this week above 7% to its highest level since late November, mortgage buyer Freddie Mac said Thursday.
The trend is a setback for home shoppers this spring homebuying season, traditionally the housing market’s busiest time of the year.
“Home sales essentially remain stuck because (the) mortgage rate has been stable and inventory is not really rising,” said Lawrence Yun, the NAR’s chief economist.
Despite the pullback in sales, the national median home sales price climbed 4.8% from a year earlier to $393,500. That’s the highest median sales price for any March on records going back to 1999 and marks the ninth month in a row that prices have risen compared to a year earlier.
The latest surge in prices reflects the heightened competition many home shoppers are facing. Consider, 60% of homes purchased in March sold within less than a month of hitting the market. And 29% of homes sold above their initial list price, up from 28% in March last year, Yun said.
“Inventory is simply not there,” he said.
While the supply of homes on the market remains below the historical average, the typical increase in homes for sale that happens ahead of the spring homebuying season gave home shoppers a wider selection of properties to choose from.
At the end of last month, there were 1.11 million unsold homes on the market, a 4.7% increase from February and up 14.4% from a year earlier, the NAR said. That’s still well short of the 1.7 million homes on the market in March 2019, before the pandemic.
The available inventory at the end of last month amounted to a 3.2-month supply, going by the current sales pace. That’s up from a 2.9-month supply in February and a 2.7-month supply in March last year. In a more balanced market between buyers and sellers, there is a 4- to 5-month supply.
That shortage of homes on the market means home sellers generally having an edge on buyers, especially those vying for the most affordable homes, which often fetch multiple offers.
The U.S. housing market is coming off a deep, 2-year sales slump triggered by a sharp rise in mortgage rates and a dearth of homes on the market. Sales of previously occupied U.S. homes sank to a nearly 30-year low last year, tumbling 18.7% from 2022 as the average rate on a 30-year mortgage surged to a 23-year high of 7.79%, according to Freddie Mac.
The average rate on a 30-year mortgage got as low as 6.67% in mid January, but has been creeping higher, reaching 7.1% this week. When mortgage rates rise, they can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford.
Mortgage rates have mostly drifted higher in recent weeks as stronger-than-expected reports on employment and inflation stoked doubt among bond investors over how soon the Federal Reserve will move to lower its benchmark interest rate.
Home loan borrowing rates are influenced by several factors, including how the bond market reacts to the Fed’s interest rate policy and the moves in the 10-year Treasury yield, which lenders use as a guide to pricing home loans.
The yield on the 10-year Treasury jumped to around 4.66% on Tuesday — its highest level since early November — after top officials at the Federal Reserve suggested the central bank may hold its main interest steady for a while. The central bank wants to get more confidence that inflation is sustainably heading toward its target of 2%.
Many economists still expect that mortgage rates will ease modestly this year, which could give homebuyers who can’t afford to pay all cash for a home more purchasing power.
“The 30-year-fixed mortgage rate could rise for few months to maybe even 7.5% before settling back down to 6.5% by the end of the year,” Yun said. In January, NAR forecast the average rate would drop to 6.1% by year’s end.
Economists at Realtor.com also project that the rate could average 6.5% by the end of this year.
For now, first-time homebuyers who don’t have any home equity to put toward their down payment continue to have a tough time getting into the housing market, though they accounted for 32% of all homes sold last month, an increase from 26% in February and 28% in March last year. That’s still well short of the 40% of sales they’ve accounted for historically.
Prospective homebuyers are facing competition from buyers who can afford to buy a home in cash. Some 28% of homes sold last month were purchased entirely with cash, down from 33% in February, but up from 27% a year ago, the NAR said.
Mortgage rates posted a big jump last week after Wednesday’s release of a higher-than-expected inflation report.
As a result, HousingWire’s Mortgage Rates Center showed the average 30-year fixed rate for conventional loans at 7.24% on Tuesday, up from 7.16% one week earlier. That’s roughly 40 basis points above the rate at the start of the year. At the same time one year ago, the 30-year fixed rate averaged 6.42%. Meanwhile, the 15-year fixed rate averaged 6.64% on Tuesday, up from 6.41% one week earlier.
As the market enters the peak homebuying season, last week’s above-consensus inflation figures brought the mortgage market back to a sour reality: The average 30-year fixed mortgage rate may be close to or above the 7% level for longer than previously expected.
“As mortgage rates increase, it’s never good news for the housing market, especially when more sellers are in the mix,” HousingWire lead analyst Logan Mohtashami said. “We saw a bounce in demand early in the year as rates fell. However, just like last year, when mortgage rates headed higher, it limits sales growth.”
As of April 12, there were 526,000 active single-family listings on the market, up 2.6% from the previous week, according to Altos Research. This uptick in inventory is a function of high and rising mortgage rates, according to Mike Simonsen, founder and president of Altos Research.
Additionally, there were 66,000 new listings unsold last week plus another 20,000 immediate sales for 86,000 total new listings, up 32% from the same week a year ago.
Last week, the U.S. Bureau of Labor Statistics reported that consumer prices were up 3.5% in March compared to a year earlier. Investors reacted by adjusting their expectations for the number of rate cuts from the Federal Reserve this year.
At the end of 2023, many investors anticipated six rate cuts for the year. A few weeks ago, three cuts became the expected norm. Now it’s two or fewer cuts, and some experts — like former Treasury Secretary Lawrence Summers — have included a rate hike in their scenarios, although the likelihood of that remains low.
In remarks made Tuesday in Washington, D.C., Federal Reserve Chair Jerome Powell said that multiple measures of inflation will need to move “sustainably toward 2% before it would be appropriate to ease policy.“
“That said, we think policy is well positioned to handle the risks that we face,“ Powell said. “If higher inflation does persist, we can maintain the current level of restriction for as long as needed. At the same time, we have significant space to ease should the labor market unexpectedly weaken.”
This report was updated to include comments from Federal Reserve Chair Jerome Powell.
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.
As we head into peak home-buying season, signs of life have begun to spring up in the housing market.
Even so, still-high mortgage rates and home prices amid historically low housing stock continue to put homeownership out of reach for many.
Moreover, the National Association of Realtors agreed to a monumental $418 million settlement on March 15 following a verdict favoring home sellers in a class action lawsuit. Still subject to court approval, the settlement requires changes to broker commissions that will upend the buying and selling model that has been in place for years.
Housing Market Forecast for 2024
Elevated mortgage rates, out-of-reach home prices and record-low housing stock are the perennial weeds that experts say hopeful home buyers can expect to contend with this spring—and beyond.
“The housing market is likely to continue to face the dual affordability constraints of high home prices and elevated interest rates in 2024,” said Doug Duncan, senior vice president and chief economist at Fannie Mae, in an emailed statement. “Hotter-than-expected inflation data and strong payroll numbers are likely to apply more upward pressure to mortgage rates this year than we’d previously forecast.”
Despite ongoing affordability hurdles, Fannie Mae forecasts an increase in home sales transactions compared to last year. Experts also anticipate a slower rise in home prices this year compared to recent years, but price fluctuations will continue to vary regionally and depend strongly on local market supply.
U.S. home prices declined in January for the third consecutive month due to high borrowing costs, according to the latest S&P CoreLogic Case-Shiller Home Price Index. But prices year-over-year jumped 6%—the fastest annual rate since 2022.
Chief economist at First American Financial Corporation Mark Fleming predicts a “flat stretch” ahead.
“If the 2020-2021 housing market was too hot, then the 2023 market was probably too cold, but 2024 won’t yet be just right,” Fleming said in his 2024 forecast.
Will the Housing Market Finally Recover in 2024?
For a housing recovery to occur, several conditions must unfold.
“For the best possible outcome, we’d first need to see inventories of homes for sale turn considerably higher,” says Keith Gumbinger, vice president at online mortgage company HSH.com. “This additional inventory, in turn, would ease the upward pressure on home prices, leveling them off or perhaps helping them to settle back somewhat from peak or near-peak levels.”
And, of course, mortgage rates would need to cool off—which experts say is imminent despite rates edging back up toward 7%. For the week ending April 11, the 30-year fixed mortgage rate stood at 6.88%, according to Freddie Mac.
However, when mortgage rates finally go on the descent, Gumbinger says don’t hope they cool too quickly. Rapidly falling rates could create a surge of demand that wipes away any inventory gains, causing home prices to rebound.
“Better that rate reductions happen at a metered pace, incrementally improving buyer opportunities over a stretch of time, rather than all at once,” Gumbinger says.
He adds that mortgage rates returning to a more “normal” upper 4% to lower 5% range would also help the housing market, over time, return to 2014-2019 levels. Yet, Gumbinger predicts it could be a while before we return to those rates.
Nonetheless, Kuba Jewgieniew, CEO of Realty ONE Group, a real estate brokerage company, is optimistic about a recovery this year.
“[W]e’re definitely looking forward to a better housing market in 2024 as interest rates start to settle around 6% or even lower,” says Jewgieniew.
NAR Settlement Rocks the Residential Real Estate Industry
Following years of litigation, the National Association of Realtors (NAR) has agreed to pay $418 million to settle a series of antitrust lawsuits filed in 2019 on behalf of home sellers.
The plaintiffs claimed that the leading national trade association for real estate brokers and agents “conspired to require home sellers to pay the broker representing the buyer of their homes in violation of federal antitrust law.”
Though the landmark settlement is subject to court approval, most consider it a done deal.
The settlement requires NAR to enact new rules, including prohibiting offers of broker compensation on multiple listing services (MLS), the private databases that allow local real estate brokers to publish and share information about residential property listings. The rule is set to take effect in mid-July, once the settlement receives judge approval.
Moreover, sellers will no longer be required to pay buyer broker commissions and real estate agents participating in the MLS must establish written representation agreements with their buyer clients.
NAR denies any wrongdoing and maintains that its current policies benefit buyers and sellers. The organization believes it’s not liable for seller claims related to broker commissions, stating that it has never set commissions and that commissions have always been negotiable.
How Will the New Rules Impact the Buying and Selling Process?
Per the settlement’s terms, the costs associated with buying and selling a home are set to change dramatically.
“The primary things that will change are the decoupling of the seller commission and the buyer commission in the MLS,” says Rita Gibbs, a Realtor at Realty One Group Integrity in Tucson. “It’s gonna cause some chaos.”
While sellers will no longer be able to offer broker compensation in the MLS, there’s no rule prohibiting off-MLS negotiations. Because of this, Gibbs suspects buyers and sellers will continue offering broker compensation off the MLS.
The Department of Justice confirmed it will permit listing brokers to display compensation details on their websites. However, buyer agents will need to undergo the tedious task of visiting countless broker websites to find who’s offering what.
Michael Gorkowski, a Virginia-based real estate agent with Compass, is also trying to figure out how to manage the potential ruling.
“We often work with buyers for many months and sometimes years before they find exactly what they’re looking for,” Gorkowski says. “So in a case where a seller isn’t offering a co-broker commission, we will have to negotiate that the buyer pays an agreed-upon commission prior to starting their search.”
The Changes Will Impact These Home Buyers Most
“In the short term, it is absolutely going to injure buyers, especially FHA and VA buyers,” Gibbs says. “With rare exception, these buyers are not in a position to pay for their own agent.”
Gibbs says that if sellers don’t offer compensation, many buyers who can’t otherwise afford to pay a broker will choose to go unrepresented.
Gorkowski notes that veterans taking out VA loans face a unique challenge under the new rules. “[P]er the VA requirements, buyers cannot pay so it must be negotiated with the seller for now.”
As a result, NAR is calling on the U.S. Department of Veterans Affairs to revise its policies prohibiting VA buyers from paying broker commissions. Even so, there’s skepticism that the federal government will be able to implement changes in time for the July deadline.
Gibbs and Gorkowski are among the many agents especially concerned about first-time home buyers. After July, first-time and VA buyers will be required to sign a buyer-broker agreement stating that they will compensate their broker—but Gibbs says many won’t have the means to do so.
In this situation, agents would likely only show buyers homes where sellers are offering compensation.
“This is a very troubling situation,” Gorkowski says.
Housing Inventory Forecast for 2024
With many homeowners “locked in” at ultra-low interest rates or unwilling to sell due to high home prices, demand continues to outpace housing supply—and likely will for a while—even as some homeowners may finally be forced to sell due to major life events such as divorce, job changes or a growing family.
“I don’t expect to see a meaningful increase in the supply of existing homes for sale until mortgage rates are back down in the low 5% range, so probably not in 2024,” says Rick Sharga, founder and CEO of CJ Patrick Company, a market intelligence and business advisory firm.
Housing stock remains near historic lows—especially entry-level supply—which has propped up demand and sustained ultra-high home prices. Here’s what the latest home values look like around the country.
Yet, some hopeful housing stock signs have begun to sprout:
Existing inventory is showing signs of loosening as impatient buyers and sellers have begun to accept the reality of mortgage rates oscillating between 6% and 7%.
Home-builder outlook also continues to get sunnier, trending back up amid declining mortgage rates and better building conditions.
The most recent National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), which tracks builder sentiment, saw a fourth consecutive monthly rise, surpassing a crucial threshold with an increase from 48 to 51 in March. A reading of 50 or above means more builders see good conditions ahead for new construction.
At the same time, new single-family building permits ticked up 1% in February—the 13th consecutive monthly increase—according to the latest data from the U.S. Census Bureau and U.S. Department of Housing and Urban Development (HUD).
Residential Real Estate Stats: Existing, New and Pending Home Sales
Though some housing market data indicates signs of growth are in store this spring home-buying season, persistently high mortgage rates may hinder activity from fully flourishing.
Here’s what the latest home sales data has to say.
Existing-Home Sales
Existing-home sales came to life in February, shooting up 9.5% from the month before, according to the latest data from the NAR. Sales dipped 3.3% from a year ago.
Experts attribute the monthly jump to a bump in inventory.
“Additional housing supply is helping to satisfy market demand,” said Lawrence Yun, chief economist at NAR, in the report.
Existing inventory rose 5.9%—logging 1.07 million unsold homes at the end of February. However, there are still only 2.9 months of inventory at the current sales pace. Most experts consider a balanced market falling between four and six months.
Meanwhile, existing home prices continue to soar to unprecedented heights, reaching $384,500, which marks the eighth consecutive month of yearly price increases and a February median home price record.
New Home Sales
Sales of newly constructed single-family houses ticked down by a nominal 0.3% compared to January, but outpaced February 2023 sales by 5.9%, according to the latest U.S. Census Bureau and HUD data.
Amid a high percentage of homeowners still locked in to low mortgage rates, home builders have been picking up the slack.
“New construction continues to be an outsized share of the housing inventory,” said Dr. Lisa Sturtevant, chief economist at Bright MLS, in an emailed statement.
Sturtevant notes that declining new home prices are coming amid a recent trend of builders introducing smaller and more affordable homes to the market.
The median price for a new home in February was $400,500, down 7.6% from a year ago.
Source: U.S. Census Bureau and U.S. Department of Housing and Urban Development
Pending Home Sales
NAR’s Pending Homes Sales Index rose 1.6% in February from the month prior even as mortgage rates approached 7% by the end of the month. Pending transactions declined 7% year-over-year.
A pending home sale marks the point in the home sales transaction when the buyer and seller agree on price and terms. Pending home sales are considered a leading indicator of future closed sales.
The Midwest and South saw monthly transaction gains while the Northeast and West saw declines due to affordability challenges in those higher-cost regions.
“While modest sales growth might not stir excitement, it shows slow and steady progress from the lows of late last year,” said Yun, in the report.
Ongoing Affordability Challenges Could Throw Cold Water on Spring Home-Buying Hopes
Though down from its 2023 high of 7.79%, the average 30-year fixed mortgage rate in 2024 remains well over 6% amid rising home values. As a result, home buyers continue to face affordability challenges.
According to data from its first-quarter 2024 U.S. Home Affordability Report, property data provider Attom found that median-priced single-family homes remain less affordable than the historical average in over 95% of U.S. counties.
For one, the data uncovered that expenses are eating up more than 32% of the average national wage. Common lending guidelines require monthly mortgage payments, property taxes and homeowners insurance to comprise 28% or less of your gross income.
At the same time, home prices and homeownership expenses continue to outpace wage growth.
Consequently, the latest expense-to-wage ratio is hovering at one of the highest points over the past decade, according to the Attom report, despite some slight affordability improvements over the last two quarters.
“Affording a home remains a financial stretch, or a pipe dream, for so many households,” said Rob Barber, CEO at Attom.
Pro Tips for Buyers and Sellers
Here are some expert tips to increase your chances for an optimal outcome in this tight housing market.
Pro Tips for Buying in Today’s Real Estate Market
Hannah Jones, a senior economic research analyst at Realtor.com, offers this expert advice to aspiring buyers:
Know your budget. Instead of focusing on price, figure out how much you can afford as a monthly payment. Your monthly housing payment is influenced by the price of the home, your down payment, mortgage rate, loan term, home insurance and property taxes.
Be flexible about home size and location. Perhaps your budget is sufficient for a small home in your perfect neighborhood, or a larger, newer home further out. Understanding your priorities and having some flexibility can help you move quickly when a suitable home enters the market.
Keep an eye on the market where you hope to buy. Determine the area’s available inventory and price levels. Also, pay attention to how quickly homes sell. Not only will you be tuned in when something great hits the market, you can feel more confident moving forward with purchasing a well-priced home. A real estate agent can help with this.
Don’t be discouraged. Purchasing a home is one of the largest financial decisions you’ll ever make. Approaching the market confidently, armed with good information and grounded expectations will take you far. Don’t let the hustle of the market convince you to buy something that’s not in your budget, or not right for your lifestyle.
Pro Tips for Selling in Today’s Real Estate Market
Gary Ashton, founder of The Ashton Real Estate Group of RE/MAX Advantage, has this expert advice for sellers:
Research comparable home prices in your area. Sellers need to have the most up-to-date pricing intel on comparable homes selling in their market. Know the market competition and price the home competitively. In addition, understand that in some price points it’s a buyer’s market—you’ll need to be prepared to make some concessions.
Make sure your home is in top-notch shape. Homes need to be in great condition to compete and create a strong “online curb appeal.” Well-maintained homes and attractive front yards are major features that buyers look for.
Work with a local real estate agent. A real estate agent or team with a strong local marketing presence and access to major real estate portals can offer significant value and help you land a great deal.
Don’t put off issues that require attention. Prepare the home by making any repairs or improvements. Removing any objections that buyers may see helps focus the buyer on the positive attributes of the home.
Will the Housing Market Crash in 2024?
Despite some areas of the country experiencing monthly price declines, the likelihood of a housing market crash—a rapid drop in unsustainably high home prices due to waning demand—remains low for 2024.
“[T]he record low supply of houses on the market protects against a market crash,” says Tom Hutchens, executive vice president of production at Angel Oak Mortgage Solutions, a non-QM lender.
Moreover, experts point out that today’s homeowners stand on much more secure footing than those coming out of the 2008 financial crisis, with many borrowers having substantial home equity.
“In 2024, I expect we’ll see home appreciation take a step back but not plummet,” says Orphe Divounguy, senior macroeconomist at Zillow Home Loans.
This outlook aligns with what other housing market watchers expect.
“Comerica forecasts that national house prices will rise 2.9% in 2024,” said Bill Adams, chief economist at Comerica Bank, in an emailed statement.
Divounguy also notes that several factors, including Millennials entering their prime home-buying years, wage growth and financial wealth are tailwinds that will sustain housing demand in 2024.
Even so, with fewer homes selling, Dan Hnatkovskyy, co-founder and CEO of NewHomesMate, a marketplace for new construction homes, sees a price collapse within the realm of possibility, especially in markets where real estate investors scooped up numerous properties.
“If something pushes that over the edge, the consequences could be severe,” said Hnatkovskyy, in an emailed statement.
Will Foreclosures Increase in 2024?
In February, total foreclosure filings were down 1% from the previous month but up 8% from a year ago, according to Attom.
“These trends could signify evolving financial landscapes for homeowners, prompting adjustments in market strategies and lending practices,” said Barber, in a report.
Lenders began foreclosure on 22,575 properties in February, up 4% from the previous month and 11% from a year ago. Meanwhile, real estate-owned properties, or REOs, which are homes unsold at foreclosure auctions and taken over by lenders, spiked year-over-year in three states: South Carolina (up 51%), Missouri (up 50%) and Pennsylvania (up 46%).
Despite foreclosure activity trending up nationally and certain areas of the country seeing notable annual increases in REOs, experts generally don’t expect to see a wave of foreclosures in 2024.
“Foreclosure activity is still only at about 60% of pre-pandemic levels … and isn’t likely to be back to 2019 numbers until sometime in mid-to-late 2024,” says Sharga.
The biggest reasons for this, Sharga explains, are the strength of the economy—we’re still seeing low unemployment and steady wage growth—along with excellent loan quality.
Massive home price growth in homeowner equity over the past few years has also helped reduce foreclosures.
Sharga says that some 80% of today’s homeowners have more than 20% equity in their property. So, while there may be more foreclosure starts in 2024—due in part to Covid-era mortgage relief programs phasing out—foreclosure auctions and lender repossessions should remain below 2019 levels.
When Will Be the Best Time To Buy a Home in 2024?
Buying a house—in any market—is a highly personal decision. Because homes represent the largest single purchase most people will make in their lifetime, it’s crucial to be in a solid financial position before diving in.
Use a mortgage calculator to estimate your monthly housing costs based on your down. But if you’re trying to predict what might happen next year, experts say this is probably not the best home-buying strategy.
“The housing market—like so many other markets—is almost impossible to time,“ Divounguy says. “The best time for prospective buyers is when they find a home that they like, that meets their family’s current and foreseeable needs and that they can afford.”
Gumbinger agrees it’s hard to tell would-be homeowners to wait for better conditions.
“More often, it seems the case that home prices generally keep rising, so the goalposts for amassing a down payment keep moving, and there’s no guarantee that tomorrow’s conditions will be all that much better in the aggregate than today’s.”
Divounguy says “getting on the housing ladder” is worthwhile to begin building equity and net worth.
Frequently Asked Questions (FAQs)
Will declining mortgage rates cause home prices to rise?
Declining mortgage rates will likely incentivize would-be buyers anxious to own a home to jump into the market. Expect this increased demand amid today’s tight housing supply to put upward pressure on home prices.
What will happen if the housing market crashes?
Most experts do not expect a housing market crash in 2024 since many homeowners have built up significant equity in their homes. The issue is primarily an affordability crisis. High interest rates and inflated home values have made purchasing a home challenging for first-time homebuyers.
Is it smart to buy real estate before a recession?
If you’re in a financial position to buy a home you plan to live in for the long term, it won’t matter when you buy it because you will live in it through economic highs and lows. However, if you are looking to buy real estate as a short-term investment, it will come with more risk if you buy at the height before a recession.
The average long-term mortgage rate has risen once again this week, with the average 30-year fixed loan now at 7.08 per cent, according to Bankrate’s latest survey of large lenders.
Another mortgage buyer, Freddie Mac, said the average rate on a 30-year mortgage rose to 6.88 per cent from 6.82 per cent last week. In comparison to a year ago, where the rate averaged 6.27%, this is having a genuine impact on American homeowners.
Average 30-year mortgage rates in the 10 largest metro areas ranged from 7.56% in Los Angeles to 6.85% in Chicago.
Rates are slightly higher now compared to the start of this year, keeping some borrowers waiting as the spring begins, which is typically known as the most popular time to buy a home.
The national median family income for 2023 was $96,300, according to the U.S. Department of Housing and Urban Development. The median price of an existing home sold in February 2024 was $384,500, according to the National Association of Realtors (NAR).
How will it affect your payment?
The initial impact of this change was felt in the stock market, with Wall Street sending shares sharply lower, as expectations that the Fed would be cutting rates proved to be premature.
Mortgage rates are influenced by the Fed benchmark rate, although they also reflect other factors, like bond yields and inflation. However, according to Lawrence Yun, chief economist at the NAR, rates for home loans are likely to be unchanged in the near-term due to factors like the strong job market and housing demand.
But that is no consolation for those already with mortgages. When mortgage rates rise, they can prove to be hugely damaging for families struggling to get by, as they add hundreds of dollars a month in costs for borrowers.
With this rise, based on a 20 per cent downpayment and a 7.08 per cent mortgage rate, the monthly payment of $2,063 amounts to 26 per cent of the typical family’s monthly income.
The Windy City, Chicago, IL, is a bustling Midwestern city known for its stunning architecture, diverse neighborhoods, and lakefront views. With a population of approximately 2.7 million residents, Chicago offers a blend of historic charm and modern amenities. From Millennium Park to the Art Institute of Chicago, the city has world-class attractions and iconic landmarks. In Chicago, the average monthly rent for a studio apartment is $1,735, while a one-bedroom unit averages $2,086.
Whether you’re new to Chicago or are looking for a more budget-friendly apartment, ApartmentGuide is here to help. We’ve gathered a list of the 10 most affordable neighborhoods in Chicago to rent in this year.
10 Affordable Neighborhoods in Chicago, IL
Chicago has plenty of historic and famous neighborhoods, each contributing to the city’s atmosphere. These Chicago neighborhoods all have rents below the city’s average for studio and one-bedroom apartments. From Hyde Park to South Shore, there are affordable options that won’t break the bank.
1. Hyde Park 2. South Shore 3. South Side 4. Irving Park 5. Ravenswood 6. Edgewater Beach 7. Albany Park 8. Lincoln Square 9. Edgewater 10. Rogers Park
Read on to see what each neighborhood has to offer its residents.
1. Hyde Park
Average studio rent: $1,150 Average 1-bedroom rent: $775 Apartments for rent in Hyde Park
Hyde Park is the most affordable neighborhood in Chicago – the average rent for a one-bedroom unit is $775. There are many reasons to love living in Hyde Park, from attractions like the Museum of Science and Industry and the Frederick C. Robie House to green spaces like Jackson Park, Promontory Point, and 57th Street Beach. If you’re looking for a taste of the neighborhood, there are a variety of local restaurants to explore, from Italian and Caribbean to vegan. For renters living in Chicago without a car, the ME Line runs through Hyde Park.
2. South Shore
Average studio rent: $725 Average 1-bedroom rent: $825 Apartments for rent in South Shore
South Shore is a relaxing area that’s just south of downtown Chicago. This affordable neighborhood has many attractions, such as the South Shore Cultural Center and Rainbow Beach. South Shore is a wonderful option if you want to be near Lake Michigan without living in Chicago’s pricier Gold Coast neighborhood. You can also catch the ME Line in South Shore, making it easy to get into the city.
3. South Side
Average studio rent: $725 Average 1-bedroom rent: $825 Apartments for rent in South Side
South Side is a lively area encompassing the southern portion of Chicago, including the above neighborhoods. This affordable neighborhood has lots of attractions, such as the Museum of Science and Industry, DuSable Black History Museum and Education Center, Guaranteed Rate Field, home to the White Sox, and the University of Chicago campus. You can also access the beachfront parks and trails along Lake Michigan.
4. Irving Park
Average studio rent: $925 Average 1-bedroom rent: $995 Apartments for rent in Irving Park
Irving Park is a bustling area just northwest of downtown Chicago. This affordable neighborhood has many attractions, such as the Irish American Heritage Center and Horner Park. Irving Park is known for its historic Victorian homes, so explore the neighborhood. It’s also home to many local coffee shops, restaurants, and breweries like ERIS Brewery and Cider House. For renters without a car, you can find the Union Pacific / Northwest (UP-NW) Line running through Irving Park.
5. Ravenswood
Average studio rent: $995 Average 1-bedroom rent: $1,215 Apartments for rent in Ravenswood
Ravenswood is a lush area with its beautiful trees and historic architecture. This neighborhood has many attractions, such as the Davis Theatre, River Park, and Winnemac Park. Ravenswood is a great area to explore Chicago’s food scene, as there are countless restaurants in the area, ranging from Italian and French to cozy cafes and updated American cuisine. Additionally, the UP-N Line and several bus routes stop in the Ravenswood neighborhood.
6. Edgewater Beach
Average studio rent: $1,130 Average 1-bedroom rent: $1,275 Apartments for rent in Edgewater Beach
Edgewater Beach is a bustling neighborhood that offers affordable rent prices near the waterfront. You can find plenty of parks like Berger Park, Lane Beach, and Foster Beach, all great options to enjoy a sunny Chicago day. Edgewater Beach also offers access to the Lakefront Trail, which is an awesome way to explore the area.
7. Albany Park
Average studio rent: $935 Average 1-bedroom rent: $1,300 Apartments for rent in Albany Park
Albany Park is the seventh-most affordable neighborhood in Chicago. It has many attractions, such as North Mayfair Park and Gompers Park. You can explore Albany’s charming main street, West Lawrence Avenue, which has plenty of restaurants and shops, ranging from bakeries and sushi to Mexican cuisine and bars. There are also plenty of transit stops, like the Brown Line.
8. Lincoln Square
Average studio rent: $995 Average 1-bedroom rent: $1,310 Apartments for rent in Lincoln Square
Lincoln Square is a lively area known for its German heritage, featured in the historic architecture and bakeries throughout the neighborhood. This affordable neighborhood has lots of attractions, such as the Old Town School of Folk Music and Winnemac Park.
9. Edgewater
Average studio rent: $1,137 Average 1-bedroom rent: $1,347 Apartments for rent in Edgewater
Edgewater is a vibrant and affordable neighborhood just outside of the Edgewater Beach neighborhood. You can find neighborhood restaurants and cafes along North Broadway and venues like The Edge Theater. It’s also close to beach parks like Foster Beach and the picturesque Foster Avenue Pierhead Light.
10. Rogers Park
Average studio rent: $1,135 Average 1-bedroom rent: $1,497 Apartments for rent in Rogers Park
Rogers Park takes the 10th and final spot on our list of affordable neighborhoods in Chicago. Located on the shores of Lake Michigan, Rogers Park is about 9 miles north of downtown, but you can find plenty of public transit options like the UP-N Line and the Red Line. The area is home to several parks, like Loyola Beach and North Shore Beach Park. You can also explore the shops and restaurants in the area.
Methodology: Affordability based on whether a neighborhood has average studio and 1-bedroom rent prices under the city’s average. Average rental data from Rent.com in March 2024.
Kansas presents a compelling landscape for renters seeking the balance between serene living and vibrant urban life. This ApartmentGuide article takes you through the Sunflower State’s most appealing cities for renters. From the historical allure of Wichita to the suburban charm of Overland Park, we delve into the rental markets, neighborhoods, and cultural offerings that make Kansas an attractive place for renters. Here are the major cities in Kansas to consider moving to.
1. Wichita, Kansas
Population: 397,532 Average rent for a one-bedroom apartment: $869 Average rent for a two-bedroom apartment: $1,097 Wichita, KS apartments for rent Wichita, KS homes for sale
Wichita is a beacon of culture and commerce in the heart of the Midwest. With its dynamic arts scene and the bustling Old Town district filled with unique shops and restaurants, there’s never a dull moment. The city also prides itself on its aviation industry heritage, offering several museums and attractions that celebrate its storied past.
2. Overland Park, Kansas
Population: 197,238 Average rent for a one-bedroom apartment: $1,045 Average rent for a two-bedroom apartment: $1,238 Overland Park, KS apartments for rent Overland Park, KS homes for sale
Overland Park offers a perfect blend of suburban charm and urban convenience, making it an ideal place for those seeking a balanced lifestyle. The city is home to an array of parks and recreational facilities such as the Overland Park Arboretum and Botanical Gardens. It also boasts top-rated schools and a thriving job market. Its vibrant downtown area is home to a variety of shops, eateries, and cultural events, ensuring that residents have plenty of options for leisure and entertainment.
3. Kansas City, Kansas
Population: 156,607 Average rent for a one-bedroom apartment: $862 Average rent for a two-bedroom apartment: $995 Kansas City, KS apartments for rent Kansas City, KS homes for sale
Kansas City is renowned for its cultural heritage, particularly in jazz music and cuisine, with some of the best barbecue joints in the country. Joe’s Kanses City Bar-B-Que is favorite. The city’s diverse neighborhoods offer a wide range of living experiences, from the historic charm of its older districts to the modern amenities of newer developments. With numerous museums, parks, and entertainment venues, Kansas City provides an urban lifestyle with a friendly, community feel.
4. Olathe, Kansas
Population: 141,290 Average rent for a one-bedroom apartment: $1,075 Average rent for a two-bedroom apartment: $1,250 Olathe, KS apartments for rent Olathe, KS homes for sale
Olathe is a rapidly growing city that offers a high quality of life for its residents. The city is known for its excellent educational institutions, parks, and a strong sense of community. Olathe’s thriving economy and affordable living costs make it an attractive place for newcomers. The city also hosts various cultural and recreational events such as the Olathe Arts Festival throughout the year, catering to a wide range of interests.
5. Topeka, Kansas
Population: 126,587 Average rent for a one-bedroom apartment: $725 Average rent for a two-bedroom apartment: $875 Topeka, KS apartments for rent Topeka, KS homes for sale
Topeka, the capital city, is steeped in history and political significance, offering residents a unique blend of cultural heritage and modern living. The city is home to several historic sites, museums, and the State Capitol, which provide a glimpse into the state’s and nation’s past. Topeka’s community is welcoming, with numerous parks, libraries, and community centers that foster a strong sense of belonging among residents.
6. Lawrence, Kansas
Population: 94,934 Average rent for a one-bedroom apartment: $852 Average rent for a two-bedroom apartment: $1,040 Lawrence, KS apartments for rent Lawrence, KS homes for sale
Lawrence is a lively college town that exudes a youthful energy and creativity. Home to the University of Kansas, the city is a hub for education, arts, and culture. Lawrence’s vibrant downtown area is filled with independent shops, cafes, and music venues, making it a popular destination for entertainment and nightlife. The city also places a strong emphasis on community involvement and sustainability, with numerous initiatives aimed at improving the quality of life for all residents.
7. Shawnee, Kansas
Population: 67,311 Average rent for a one-bedroom apartment: $1,080 Average rent for a two-bedroom apartment: $1,427 Shawnee, KS apartments for rent Shawnee, KS homes for sale
Shawnee is recognized for its blend of historical heritage and modern living. The city prides itself on its well-preserved historical sites and beautiful parks, offering a peaceful retreat from the hustle and bustle of city life. The JoCo Museum of History is a highlight. Shawnee’s strong community spirit is evident in its numerous festivals and events that bring residents together. The city also boasts excellent schools and a thriving local economy, making it a great place to live and work.
8. Lenexa, Kansas
Population: 57,434 Average rent for a one-bedroom apartment: $1,624 Average rent for a two-bedroom apartment: $1,972 Lenexa, KS apartments for rent Lenexa, KS homes for sale
Lenexa, often referred to as the “City of Festivals,” is known for its community life and numerous annual events that celebrate the city’s culture and history. Residents and visitors alike enjoy the The Great Lenexa Barbecue Battle in June and the Spinach Festival in September. The city offers a high standard of living with its well-maintained neighborhoods, excellent schools, and ample green spaces. Lenexa’s strategic location and robust economy attract businesses and residents alike, making it a dynamic and prosperous place to call home.
9. Manhattan, Kansas
Population: 54,100 Average rent for a one-bedroom apartment: $785 Average rent for a two-bedroom apartment: $990 Manhattan, KS apartments for rent Manhattan, KS homes for sale
Manhattan, affectionately known as “The Little Apple,” is a charming city that offers a unique blend of college town vibrancy, cultural attractions, and natural beauty. Home to Kansas State University, the city thrives on the energy and innovation of its student population. Manhattan’s residents enjoy access to a variety of outdoor activities, including exploring the nearby Flint Hills and Tuttle Creek Lake. The city’s commitment to community and education makes it an enriching place to live.
10. Salina, Kansas
Population: 46,889 Average rent in Salina: $991 Salina, KS apartments for rent Salina, KS homes for sale
Salina serves as a cultural and economic hub in the region, known for its thriving arts scene, historical attractions, and community-focused events. The Smoky Hill River Festival offers residents 3+ days of music and arts. The city’s housing market is diverse, offering a range of options for potential residents. Salina’s commitment to education, health care, and local businesses contributes to its reputation as a welcoming and dynamic community.
Methodology : The population data was retrieved from the United States Census Bureau for 2021, while the average rental data was sourced from Rent.com and the Redfin Data Center in March 2024.