“The second-quarter profit report offers a mixed bag of plusses and minuses that added up to an overall picture of not much change for sellers,” ATTOM chief Rob Barber said in the report. “Prices jumped back upward, which was great news for owners. So did raw profits. Profit margins also remained historically elevated.” However, Barber … [Read more…]
Charlotte, North Carolina offers a unique blend of Southern charm, college town energy, and big city sophistication. Known for its thriving job market, mild weather, and growing food scene, Charlotte is an attractive destination for both renters and buyers. Not sure if the Queen City is for you? Read on to find out what to expect if you’re considering a move to the Charlotte area in 2024.
You know it from: Days of Thunder, The Color Purple, The Eyes of Tammy Faye
Average 1 bedroom rent: $1,527 | Charlotte apartments for rent, Charlotte houses for rent
Average home price: $445,000 | Charlotte homes for sale
Average cost of full-service moving services: $112/hr for 2 movers
Average cost to rent a moving truck: $19 – $39/day
Top industries: Manufacturing, Finance, Tech
Move here for: The job market, big city amenities with a small town feel, outdoor recreation
Be sure to bring: Baseball hat and boat shoes
1. Southern hospitality is a real thing in Charlotte
Charlotte residents are famously friendly and welcoming. Whether you’re at a local brewery, a neighborhood festival, or just walking down Tryon Street, expect to be greeted with smiles and warm conversation. This sense of community extends to neighborhood gatherings and public events, making it easy for newcomers to feel at home quickly. The genuine friendliness of Charlotteans is often cited as one of the city’s most appealing qualities.
2. Mild winters and hot, humid summers
Charlotte enjoys four distinct seasons, with mild winters that rarely see snow and long, hot summers. Spring and fall are particularly pleasant, offering comfortable temperatures perfect for outdoor activities. However, the summer heat can be intense, with temperatures frequently soaring into the 90s and high humidity levels.
Moving Tip: Beat the summer heat by embracing the local custom of escaping to the mountains or nearby lakes. Check out Salem Lake near Winston-Salem or the quaint town of Sylva. If you’re feeling fancy, Highlands and Cashiers are also popular.
3. Rapidly growing job market
Charlotte is a major financial and banking hub, home to Bank of America and the east coast operations of Wells Fargo. The city’s economy is diverse, with opportunities in finance, tech, healthcare, and energy sectors. This growth has spurred a high demand for skilled professionals, making Charlotte an attractive destination for job seekers. The low unemployment rate and competitive salaries add to the city’s appeal for career-driven individuals.
4. Diverse neighborhoods with unique charm
From the historic charm of Dilworth to the urban vibe of Uptown, Charlotte’s neighborhoods offer something for everyone. NoDa (North Davidson) is known for its artsy feel and vibrant nightlife, while South End boasts trendy eateries and the popular Rail Trail. Each neighborhood has its own distinct personality, making it easy to find a community that fits your lifestyle. Exploring these areas is a great way to discover what makes Charlotte special.
5. The craft beer scene is booming
Charlotte has a thriving craft beer scene, with over 30 breweries scattered throughout the city. Popular spots like Olde Mecklenburg Brewery, NoDa Brewing Company, and Sycamore Brewing attract locals and visitors alike. Beer enthusiasts will enjoy the variety of local brews and the lively social scene at these breweries. Many offer tours, events, and food trucks, creating a perfect atmosphere for casual outings.
6. Excellent outdoor recreation opportunities
With the U.S. National Whitewater Center, Lake Norman, and numerous parks, Charlotte offers plenty of outdoor activities. The Whitewater Center provides everything from whitewater rafting to rock climbing and mountain biking. Freedom Park and Romare Bearden Park are ideal for picnics, sports, and community events. These green spaces are perfect for those who enjoy an active lifestyle and connecting with nature.
Moving Tip: One of the perks of living in Charlotte is its convenient location. The Blue Ridge Mountains are just a few hours to the west, perfect for weekend getaways and outdoor adventures. To the east, the Carolina coast offers beautiful beaches and seaside towns. This accessibility makes it easy to enjoy diverse landscapes without long travel times.
7. Traffic can be challenging
The city’s rapid growth has led to significant traffic congestion, especially during rush hours. Main arteries like I-77 and I-85 can become bottlenecks, making commutes longer than expected. Charlotteans often strategize their travel times to avoid peak congestion. While public transportation is available, it’s not as extensive as in larger cities, so having a car is often necessary.
8. From collard greens to fine cuisine
Charlotte’s culinary scene is diverse and delicious, offering everything from Southern comfort food to international cuisine. Popular dining spots include Kindred in Davidson, Optimist Hall, and Haberdish in NoDa. The city’s food truck culture is also thriving, with weekly events like Food Truck Friday showcasing a variety of options. Foodies will appreciate the constantly evolving restaurant landscape and the emphasis on local ingredients.
Moving Tip: If you’re new to the region, we urge you to try Cheerwine, the polarizing soda that is either beloved or bemoaned by NC denizens.
9. Cost of living is relatively affordable
Compared to other major cities, Charlotte’s cost of living is quite reasonable. Housing costs, while rising, are still 10% below the national average. Utilities, groceries, and healthcare also tend to be less expensive. This affordability makes it possible to enjoy a higher quality of life without breaking the bank.
10. Strong education options
Charlotte offers a range of educational opportunities, from highly-rated public schools to prestigious private institutions. The city is also home to several colleges and universities, including UNC Charlotte and Davidson College. These institutions provide quality education and contribute to the city’s vibrant intellectual community.
11. The arts are a big part Charlotte’s culture
The arts are alive in Charlotte, with numerous galleries, theaters, and museums. The Mint Museum, Bechtler Museum of Modern Art, and Blumenthal Performing Arts Center are just a few highlights. The city also hosts events like the Charlotte Film Festival and Charlotte Symphony performances. Culture enthusiasts will find plenty to explore and enjoy in Charlotte’s dynamic arts scene.
12. Sports fans will feel right at home
Charlotte is a sports town, home to the NFL’s Carolina Panthers, the NBA’s Charlotte Hornets, and the NASCAR Hall of Fame. Bank of America Stadium and Spectrum Center host exciting games and events throughout the year. Whether you’re a football, basketball, or motorsports fan, Charlotte offers plenty of opportunities to cheer on your favorite teams.
13. Vibrant nightlife and entertainment
From lively bars and clubs in Uptown to cozy music venues in NoDa, Charlotte’s nightlife has something for everyone. The Music Factory and Epicentre are popular destinations for concerts and entertainment. The city’s vibrant social scene ensures there’s always something happening, making it easy to find fun and excitement after the sun goes down.
14. A green city with plenty of parks
Charlotte boasts an abundance of green spaces and parks, perfect for outdoor enthusiasts. Freedom Park, Romare Bearden Park, and the U.S. National Whitewater Center offer a variety of recreational activities. These spaces provide a welcome respite from urban life and are popular spots for picnics, sports, and relaxation. The city’s commitment to green spaces makes it easy to enjoy nature without leaving the city.
Methodology: Average rent prices sourced from Rent.com July 2024. Home prices sourced from Redfin July 2024. Average moving costs sourced from MoveBuddha. Employment data sourced from Charlotte Alliance.
Average rent: $1,451 per month for a one-bedroom apartment
Median home sale price: $564,000
Public transit: Capital Metropolitan Transportation Authority (CapMetro) provides bus and rail services throughout the city
Public parks: Over 300 parks and green spaces for recreation and relaxation
Annual tourists: Approximately 30 million visitors each year
Restaurants: Over 4,000, offering a variety of cuisines from around the world
1. Pro: Thriving music scene
Austin is famously known as the “Live Music Capital of the World.” The city boasts a vibrant music scene with numerous live music venues, ranging from small bars and clubs to large concert halls. Events like South by Southwest (SXSW) and Austin City Limits (ACL) draw international attention and provide endless entertainment options for residents and visitors alike. The city’s rich musical heritage and active live music scene make it a haven for music lovers.
2. Con: High housing costs
While Austin offers many amenities and a high quality of life, housing costs are relatively high. Housing costs have risen significantly and are now about 9% more than the national average. The median sale price for a home in Austin is around $564,000, and the average rent for a one-bedroom apartment in Austin is about $1,451 per month. Residents need to budget carefully to manage these expenses effectively.
3. Pro: Strong job market
Austin has a robust and diverse job market, particularly in the technology, healthcare, and education sectors. The city is home to numerous tech companies, including major players like Dell, Apple, and Google, earning it the nickname “Silicon Hills.” The presence of these companies, along with a growing number of startups, provides ample job opportunities and contributes to the city’s economic stability. Additionally, the University of Texas at Austin is a major employer and fosters a strong academic environment.
Top employers in Austin
IBM
National Instruments
Ascension Seton
Amazon
Samsung Austin Semiconductor
4. Con: Hot summers
Austin experiences hot summers, with temperatures often soaring into the 90s and sometimes reaching triple digits. The intense heat can be uncomfortable and limit outdoor activities during the peak summer months. Residents need to be prepared for the weather with proper cooling systems and hydration strategies. While the city enjoys mild winters, the summer heat can be a challenge for those not accustomed to such conditions.
5. Pro: Affordable cost of living
Despite high housing costs, the overall cost of living in Austin is about 1% lower than the national average. Utilities are 4% lower, groceries are 2% less expensive, transportation costs are 10% below average, and healthcare costs are 2% less than the national average. These lower costs in other areas can help balance out the high housing expenses, making it easier for residents to manage their overall budgets.
6. Pro: Outdoor recreational activities
Austin offers a wide range of outdoor recreational activities, thanks to its extensive park system and proximity to natural attractions like the Hill Country. Residents can enjoy hiking, biking, kayaking, and swimming in the numerous parks and natural areas. The city’s mild winters and long summers make it possible to enjoy outdoor activities year-round, and the diverse landscape provides opportunities for both leisurely and adventurous pursuits.
Popular outdoor spots in Austin
Zilker Park
Lady Bird Lake
Barton Springs Pool
McKinney Falls State Park
Mount Bonnell
7. Pro: Culinary diversity
Austin features a diverse culinary scene, with a wide range of restaurants offering cuisines from around the world. From farm-to-table establishments and fine dining to food trucks and casual eateries, the city has something to satisfy every palate. Austin is particularly known for its barbecue and Tex-Mex cuisine, which are integral parts of the local food culture. Additionally, food festivals, such as the Texas Monthly BBQ Fest and the Austin Food + Wine Festival, showcase the city’s culinary creativity and provide opportunities for residents to explore new flavors.
Popular restaurants in Austin
Franklin Barbecue
Uchi
Odd Duck
Veracruz All Natural
Launderette
8. Con: Limited public transportation options
While CapMetro provides essential bus and rail services, the public transportation system in Austin is limited compared to larger metropolitan areas. The city has a transit score of 35, a walk score of 42, and a bike score of 54. While biking and walking are viable options for many residents, those who rely on public transit may find the system lacking in convenience and coverage, particularly in suburban areas. Investing in a personal vehicle is often necessary for more extensive commuting.
9. Pro: Cultural and arts scene
Austin boasts a rich cultural and arts scene, with numerous theaters, galleries, and music venues. The city is home to the Blanton Museum of Art, the Contemporary Austin, and the Zach Theatre. Additionally, Austin hosts a variety of cultural festivals and events throughout the year, such as the South by Southwest (SXSW) festival, the Austin City Limits Music Festival, and the Pecan Street Festival. These events celebrate the city’s artistic diversity and provide residents with ample opportunities for cultural enrichment and entertainment.
10. Pro: Strong sense of community
Austin is known for its strong sense of community and civic engagement. Residents are often involved in neighborhood associations, community events, and local initiatives that promote a sense of belonging and collaboration. The city’s diverse neighborhoods, such as South Congress, East Austin, and Hyde Park, each have their own unique character and charm, fostering tight-knit communities where residents support one another. This strong community spirit enhances the quality of life and makes Austin a welcoming place to live.
11. Con: Rising property values and housing demand
As Austin continues to grow and develop, rising property values and increased demand for housing have become significant concerns in many neighborhoods. These trends have led to the displacement of long-time residents and changes in the character of historic communities. The increasing property values can result in a loss of cultural diversity and affordable housing options in certain areas. Efforts are being made to address these issues through community initiatives and affordable housing programs, but the rapid growth and development remain challenges for the city.
12. Pro: Sports and entertainment
Austin has a vibrant sports and entertainment scene, with professional teams, collegiate athletics, and numerous live events. Residents can cheer on Austin FC, the city’s Major League Soccer team, at the state-of-the-art Q2 Stadium. The University of Texas at Austin also has a strong athletic program, with popular sports like football, basketball, and baseball. Additionally, Austin’s music venues, theaters, and event spaces host a wide range of concerts, performances, and festivals, providing a rich array of entertainment options for residents.
Welcome to the charming city of Little Rock, where southern hospitality meets modern living. With its rich history, beautiful riverfront, and thriving arts scene, Little Rock offers a unique blend of tradition and progress. Residents here enjoy a laid-back lifestyle, friendly neighborhoods, and a strong sense of community. Whether you’re looking for a cozy apartment in Little Rock or a spacious home for rent, Little Rock has something for everyone.
In this ApartmentGuide article, we’ll cut to the chase, breaking down the pros and cons of living in Little Rock. Let’s get started and see what awaits in this gem of the South.
Fast facts about living in Little Rock
Population: Approximately 200,000 residents
Average rent: $868 per month for a one-bedroom apartment
Median home sale price: $265,000
Public transit: Rock Region METRO provides bus services throughout the city
Public parks: Over 60 parks and green spaces for recreation and relaxation
Annual tourists: Approximately 6 million visitors each year
Restaurants: Over 600, offering a variety of cuisines from around the world
1. Pro: Affordable cost of living
The cost of living in Little Rock is about 18% lower than the national average. Housing costs, in particular, are significantly lower, with the median sale price for a home in Little Rock around $265,000 and the average rent for a one-bedroom apartment in Little Rock about $868 per month, making housing 18% more affordable than the national average. Additionally, utilities are 8% less expensive, groceries are 2% lower, transportation costs are 11% below average, and healthcare costs are 12% less than the national average. This lower cost of living makes Little Rock an attractive option for individuals looking to stretch their budgets further. Residents can enjoy a comfortable lifestyle while benefiting from these cost savings.
2. Con: Limited public transportation
While Rock Region METRO provides essential bus services, the public transportation system in Little Rock is limited compared to larger cities. The city has a transit score of 19, a walk score of 33, and a bike score of 34. This means that most daily errands require a car, which can be inconvenient for those who prefer not to drive or do not own a vehicle. The spread-out nature of the city and limited service hours can make commuting challenging without a car.
3. Pro: Rich history and culture
Little Rock boasts a rich history and vibrant cultural scene. The city is home to several museums, historic sites, and cultural institutions, such as the Clinton Presidential Library, the Arkansas Arts Center, and the Historic Arkansas Museum. These attractions provide residents with numerous opportunities for educational and cultural enrichment. Additionally, Little Rock hosts a variety of festivals and events throughout the year, celebrating everything from music and arts to food and heritage.
4. Con: Hot and humid summers
Little Rock experiences hot and humid summers, with temperatures often soaring into the 90s°F. The intense heat and humidity can be uncomfortable and limit outdoor activities during the peak summer months. Residents need to be prepared for the weather with proper cooling systems and hydration strategies. While the city enjoys mild winters, the summer heat can be a challenge for those not accustomed to such conditions.
5. Pro: Outdoor recreational activities
Little Rock offers a wide range of outdoor recreational activities, thanks to its scenic location along the Arkansas River and proximity to the Ouachita Mountains. Residents can enjoy hiking, biking, fishing, and boating in the numerous parks and natural areas.
Popular outdoor spots in Little Rock
Pinnacle Mountain State Park
Riverfront Park
Two Rivers Park
Burns Park
Murray Park
These locations provide ample opportunities for fitness, relaxation, and enjoying the natural beauty of the region.
6. Con: Limited job market diversity
While Little Rock has a growing economy, the job market is somewhat limited in diversity compared to larger metropolitan areas. The city’s economy is heavily influenced by government, healthcare, and retail sectors. While these industries provide job opportunities, those seeking employment in more specialized fields may find fewer options available. The city’s smaller size can also limit career advancement opportunities for some professionals.
Top employers in Little Rock
University of Arkansas for Medical Sciences (UAMS)
Baptist Health
Dillard’s
Arkansas Blue Cross Blue Shield
Arkansas Children’s Hospital
7. Pro: Strong educational institutions
Little Rock is home to several respected educational institutions, including the University of Arkansas at Little Rock (UALR) and the University of Arkansas for Medical Sciences (UAMS). These institutions offer a wide range of programs and contribute to the city’s vibrant academic atmosphere. Additionally, Little Rock has a variety of public and private schools providing quality education for everyone.
8. Con: Limited shopping options
While Little Rock has a variety of local shops and boutiques, it lacks the extensive shopping options found in larger metropolitan areas. Residents often need to travel to nearby cities for certain retail needs or high-end shopping experiences. While local malls and shopping centers provide basic necessities, the selection can be limited compared to larger cities.
9. Pro: Community-friendly environment
Little Rock is known for its strong sense of community and Southern hospitality. The city hosts numerous events and festivals throughout the year, such as the Riverfest and the Arkansas State Fair, which bring residents together and foster a sense of camaraderie. Little Rock’s neighborhoods, such as Hillcrest, Heights, and the Quapaw Quarter, offer a variety of living environments with active community associations and local initiatives that enhance the quality of life.
10. Con: Limited nightlife
While Little Rock offers a variety of dining and entertainment options, its nightlife scene is not as vibrant as larger cities. The city has a more laid-back atmosphere, with fewer late-night venues and entertainment options. Residents seeking a bustling nightlife might find the options limited, though there are still plenty of local bars, breweries, and restaurants to enjoy. For those who crave more excitement, larger cities like Memphis and Dallas are within driving distance.
11. Pro: Historic charm
Little Rock’s rich history is reflected in its architecture and historic districts. The city is home to several well-preserved historic neighborhoods, such as the Quapaw Quarter, which features beautiful homes and tree-lined streets. Downtown Little Rock also boasts historic buildings and landmarks, including the Old State House Museum and the Robinson Center, adding to the city’s unique character and charm.
12. Pro: Culinary diversity
Little Rock is home to a diverse culinary scene, with a variety of restaurants offering cuisines from around the world. From Southern comfort food to international delights, the city has something to satisfy every palate. Food festivals, such as the Main Street Food Truck Festival and the Arkansas Cornbread Festival, showcase the city’s culinary creativity.
Thinking of making South Carolina your new home? The Palmetto State offers residents diverse natural landscapes, vibrant urban centers, and a growing economy, making it an attractive destination for newcomers. Whether you’re browsing homes for sale in Charleston, considering renting in Columbia, or exploring houses for rent in Greenville, here’s what you need to know before moving to South Carolina.
South Carolina at a glance
From the stunning landscapes of Congaree National Park to the pristine beaches of Hilton Head Island, the state has something for everything. Major cities such as Charleston, Columbia, and Greenville serve as vibrant hubs of cultural activities and economic opportunities.
South Carolina’s economy thrives in sectors like manufacturing, aerospace, technology, and healthcare, with notable companies such as Boeing, Michelin, and Prisma Health making their home here. Renowned events, such as the Spoleto Festival USA in Charleston, showcase the state’s vibrant arts and music culture, while the diverse culinary heritage highlights delicious Lowcountry cuisine and barbecue.
Spartanburg and Sumter are among the most affordable places to live in the state, making South Carolina an enticing choice for those seeking a high quality of life and economic opportunity. Whether you’re exploring the scenic Blue Ridge Mountains, enjoying outdoor activities at Lake Murray, or immersing yourself in local culture, South Carolina offers a dynamic and rewarding lifestyle.
1. The state has some of the best beaches on the East Coast
South Carolina is home to some of the most stunning beaches on the East Coast, offering a mix of lively and tranquil experiences. Myrtle Beach, with its bustling boardwalk, vibrant nightlife, and fun attractions, draws visitors from far and wide. Stroll along the iconic pier, play at the beachfront arcades, or enjoy a round of mini-golf at one of the many themed courses. For a quieter escape, head to Folly Beach near Charleston, known for its laid-back vibe, charming pier, and surf-friendly waves. Here, you can explore eclectic local shops, dine at waterfront restaurants offering fresh seafood, and watch for dolphins playing in the surf.
Travel tip: Visit Hilton Head Island during the off-peak season in late spring or early fall to enjoy fewer crowds and more affordable accommodations.
2. Grits are a very popular dish here
In South Carolina, grits aren’t just a side dish—they’re a staple of the local diet. Whether served creamy with butter and cheese or paired with shrimp for the classic Lowcountry dish, shrimp and grits, this Southern comfort food is a must-try. Many local diners and upscale restaurants, like Charleston’s Husk, offer their unique takes on this beloved dish.
Insider scoop: For an authentic experience, try breakfast at a local spot like Early Bird Diner in Charleston, where you can enjoy grits made the traditional way.
3. The cost of living is lower than the national average
One of the appealing aspects of South Carolina is its affordable cost of living. Housing, in particular, is reasonably priced, with the state’s median home sale price of $387,500 which is below the national median of $438,441. The affordability extends to rental prices where you’ll find popular metros like Charleston where a two bedroom apartment goes on average for $1,552. For those looking for more affordable places to live, there are plenty of popular cities that are accommodating. In fact, the cost of living in Columbia is 8% lower than the national average, and when compared to Charleston, the cost of living is 7% lower. Everyday expenses, including groceries and utilities, also tend to be more affordable, making the state an attractive option for those looking to get more bang for their buck.
Explore the best places to live in South Carolina to give you some insight on different cities in the state.
4. South Carolina has significant history
South Carolina is steeped in history, playing a pivotal role in both the American Revolution and the Civil War. Charleston, the state’s oldest city, is home to historic sites such as Fort Sumter, where the first shots of the Civil War were fired. Visit the Historic Charleston City Market or take a carriage tour to immerse yourself in the city’s rich past. Understanding and appreciating South Carolina’s deep historical ties is important before moving there, as it enriches the experience of living in a place with such a storied heritage.
5. The weather can be intense
South Carolina’s weather is generally mild, but it can also be quite intense, which is important to consider when living in South Carolina. Summers are hot and humid, with temperatures often soaring into the 90s. Hurricane season, which runs from June to November, can bring severe storms and heavy rainfall. Additionally, tropical cyclones can sometimes form outside of these dates. On the other hand, winters are mild and brief, making the state an attractive destination for those looking to escape harsher northern climates.
Travel tip: If you’re visiting during hurricane season, stay updated with local weather forecasts and have flexible travel plans.
6. Sweet tea is the state’s preferred drink
In South Carolina, sweet tea is more than just a beverage—it’s a way of life. This sugary, refreshing drink is a staple at every meal and a symbol of Southern hospitality. You’ll find it served at restaurants, cafes, and even gas stations across the state. For the best sweet tea experience, visit the Charleston Tea Garden, the only tea plantation in North America, where you can learn about the tea-making process and sample fresh, locally grown sweet tea.
7. Each region has its own BBQ style
Barbecue in South Carolina is serious business, with each region boasting its own unique style. In the Midlands, you’ll find a mustard-based sauce known as Carolina Gold. The Pee Dee region favors a vinegar-pepper sauce, while the Upstate often features a tangy tomato-based sauce. No matter where you go, you’re sure to find delicious, slow-cooked meats at local BBQ joints like Shealy’s Bar-B-Que in Batesburg-Leesville, renowned for its flavorful sauces and mouth-watering pork.
Insider scoop: For a true taste of South Carolina BBQ, visit the annual Smoke on the Beach BBQ competition in Myrtle Beach or head to a local favorite like Sweatman’s BBQ in Holly Hill to sample different regional styles.
8. Watch out for the alligators
Alligators are a common sight in South Carolina, especially in the coastal regions and freshwater lakes. While they are generally not aggressive, it’s important to be cautious around bodies of water. Pay attention to warning signs and keep a safe distance if you spot one. Areas like the Congaree National Park are known habitats for these reptiles, adding a bit of adventure to your outdoor activities.
You’ll want to consider the pros and cons of living in South Carolina before you decide to move here.
9. You’ll start to notice the southern accents
The charm of South Carolina is enhanced by the melodic drawl of the Southern accent. You’ll hear it in the friendly greetings at the local grocery store and the casual conversations on the streets of Charleston. The accent varies slightly from region to region, but it always adds a warm, welcoming touch to the interactions you’ll have.
10. College sports are big here
College sports are a big deal in South Carolina, with fierce rivalries adding to the excitement. The most notable is the rivalry between the University of South Carolina Gamecocks and the Clemson University Tigers, a showdown that captivates fans across the state. Game days are filled with tailgating, spirited cheers, and intense competition, as fans don their school colors and gather for pre-game festivities.Whether you’re at a game or watching from home, the passion for college football runs deep in South Carolina, making it an integral part of the state’s culture.
Methodology
Population data sourced from the United States Census Bureau, while median home sale prices, average monthly rent, and data on affordable and largest cities are sourced from Redfin.
Homes in Nunaka Valley neighborhood of East Anchorage. (Loren Holmes / ADN)
Last year in Anchorage, housing reached its least affordable level in the last 21 years — worse even than during the Great Recession more than a decade ago, according to new data from the Alaska Department of Labor and Workforce Development.
State economists reported a similar statewide trend in May. In 2023, housing in Alaska was at the least affordable level since 2006.
The cost of home ownership in Alaska has increased dramatically since 2018, according to data provided by Alaska Housing Finance Corp. The average mortgage payment — principal loan amount plus interest, but excluding property taxes, insurance and other costs — rose by 52% between 2018 and 2024.
Rents have soared in that same time period.
“The rental market has gone up by about 24% in terms of the pricing escalation across the state,” said Daniel Delfino, an economist and director of planning at Alaska Housing Finance Corp.
City officials have called the situation in Anchorage a housing crisis. They’ve pointed to a tangle of factors: the spike in housing costs, a low rental vacancy rate, a rising number of short-term vacation rentals, a decline in housing development, increasing building costs and a labor shortage, among others.
The new data sheds further light on the difficulties of renting or buying a home in Anchorage today.
It’s become a central issue in recent city policymaking and discourse. Mayor Suzanne LaFrance, sworn in on Monday, says housing is a top priority for her administration.
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The Assembly has aimed to spur more housing development with a series of changes made to city code over the last two years. Late last month, the Assembly voted to essentially eliminate single-family zoning in the Anchorage Bowl, by allowing duplexes to be built in areas that were previously zoned only for houses.
To Assembly Vice Chair Meg Zaletel, one of the sponsors of last week’s measure, a housing crisis means that people across the economic spectrum “can’t achieve appropriate housing, attainable housing that’s suitable to their needs,” she said.
“That’s renters who are stuck at the top of the rental market who can’t move into home ownership. That’s people needing to double or triple up in order to afford rent. That means there just aren’t enough housing units for the market to respond to the various circumstances and needs,” she said.
More expensive, fewer homes for sale
Downtown Anchorage, photographed from Fish Creek. (Loren Holmes / ADN)
The median rent in Anchorage increased by 7.8% since last year, rising from $1,275 to $1,375 in 2024, according to AHFC’s data. That doesn’t include the cost of utilities.
AHFC’s rental data comes from a yearly survey in March done by the state Department of Labor. It “runs the full gamut” of rental housing, from studios to four bedrooms and larger, and excludes rentals that have income restrictions, like those for affordable housing programs, Delfino said.
This year’s increase comes after Anchorage rents rose 14.2% in 2022 and jumped another 5% in 2023, according to state data.
The U.S. Department of Housing and Urban Development defines being “housing cost burdened” as spending more than 30% of a person or household’s monthly income on rent or mortgage payments and utilities.
Among economists, there isn’t a broadly used definition of a “housing crisis,” nor is there a defined level of ideal affordability, said Rob Kreiger, an economist with the Alaska Department of Labor and Workforce Development who authored the May report.
That’s because what may be affordable varies by the circumstances and income of an individual, he said.
But with Anchorage housing at its “least affordable level” in two decades, “I think right now, what we’re seeing is, it’s really prohibitive for first-time buyers to afford a home, and it’s really expensive to rent as well,” Kreiger said.
Statewide, “it’s more expensive, and there are fewer homes on the market,” Delfino said, adding that the reported number of homes sold and mortgage loans recorded has dropped “pretty significantly over the past couple of years.”
According to the National Association of Homebuilders’ chief economist, more than 86% of residents can’t afford the cost of a newly constructed home in Anchorage.
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State economists measure home purchase affordability with the Alaska Affordability Index, a calculation that uses the average mortgage payment and average monthly wages to determine how much income it takes to afford a home.
An average index of 1 would mean that average monthly wages are just enough for one person to afford the average monthly mortgage payment for an average priced home.
The state and Anchorage saw the lowest indexes — the most affordable housing — in 2020 and 2021. Mortgage interest rates dropped significantly during that time as the federal government took actions to stabilize the economy during the pandemic, Kreiger said.
But by 2023, Anchorage’s affordability index jumped to 1.8. That means to afford the average Anchorage home, it takes about two people working full time at the average wage.
The Anchorage-specific data only dates back to 2002, and housing last year was at its least-affordable level in that timespan.
In 2023, Alaska’s overall affordability index was 1.66, the highest since 2006. That dataset dates back to 1992.
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‘Alaska has a problem with keeping young people’
What the state data doesn’t show or quantify is how the rapid increases in housing costs are affecting everyday residents, Delfino and Kreiger said in separate interviews.
“Given that things have moved a lot, and so quickly recently, it’s that stuff underneath the data set that affects real people that I would say is probably really pressing when we talk about the affordability,” Delfino said.
Before passing the zoning measure, the Assembly last month heard an outpouring of testimony from Anchorage residents. Many described struggling to find homes to rent or buy, or told stories of loved ones moving away because housing here is scarce and expensive.
“Based on my experiences as a renter and as a young person in Anchorage, it is very difficult for young people to find adequate housing in Anchorage. If you have a pet — forget about it,” said Sean McDowell, a renter in South Addition. McDowell said he lost his previous housing because the owner turned it into an Airbnb for the summer.
“We all know that Alaska has a problem with keeping young people. If there’s nowhere to live for young people, if it’s difficult to find a long-term rental in Anchorage, young people are going to keep leaving,” McDowell said.
Sean McDowell testified before the Anchorage Assembly about the lack of affordable housing at a meeting in June . McDowell is a renter in the South Addition neighborhood, where he was photographed this week. (Anne Raup / ADN)
“To what extent is housing playing in people’s decision to leave or stay here? It’s hard to say,” Kreiger said.
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As homeownership becomes more expensive, the point in a person’s life when they switch from renting to buying a home moves further out, Kreiger said in his May report.
“That gap is wider and wider, so it’s harder and harder to make that transition. So we see people that, six years ago, would have become homeowners, staying in an increasingly tight renter market,” Delfino said.
And then there’s wages.
For some Alaskans, raises and regular cost of living pay increases have helped to defray the pressure of rapidly rising housing costs.
But for many residents, it’s unlikely wages will increase quickly enough in the near term to make up the difference, Kreiger said.
“When we’re looking at inflation that’s as recent as it is, how quickly everyone’s salaries have caught up to the increased cost of living, I think, drives how acutely people feel the affordability pinch,” Delfino said.
A worker in Alaska, paid at the state’s minimum wage, $11.73 an hour, needs to work 75 hours a week in order to afford a modest, one-bedroom apartment at the statewide fair market rent, according to the National Low Income Housing Coalition’s annual report.
A full-time worker in Anchorage needs to make at least $27.96 per hour to afford a two-bedroom at the fair market rent of $1,454. A person making minimum wage would need to work 96 hours to afford the same apartment, according to the report.
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Getting back to average
Homes in Anchorage’s Westpark development south of Ted Stevens Anchorage International Airport. (Loren Holmes / ADN)
Another factor in increased housing costs is how rapidly mortgage interest rates have risen. Interest rates are a “critical component” making housing less and less affordable, Kreiger said.
When rates dropped during the pandemic, “it brought a lot of competition and buyers to the market that wouldn’t have otherwise been able to participate,” Kreiger said.
The average sales price for a single-family home in Anchorage rose 26% between 2019 and 2023, from $389,477 to $490,596, according to state data.
“Because you had that big rush of buyers and all that competition, and you have on top of that, this limited amount of homes for sale and limited construction … that’s really what I think put prices up so high,” Krieger said.
Since then, the average interest rate for 30-year fixed-rate mortgages has seen an unprecedented rise, according to Kreiger’s May report.
The average rate in Alaska is 6.33% — the highest since 2006.
Not only is it more difficult for a first-time home buyer to purchase a place to live, but the high interest rates can keep people stuck in homes they’ve owned for a few years.
“When the costs go up, especially if you’re a person who locked in an interest rate at 2.5% and you’re looking at moving, it’s the question of, could you afford your own home if you had to buy it today?” Delfino said.
For many residents, the answer is likely no, he said.
It’s another impact that’s difficult to quantify.
“We know all these things are happening,” Kreiger said. “… We know that there’s people who are stuck, we just don’t know how many there are.”
Still, for many longer-term homeowners who’ve built up equity, the market has never been better, Kreiger said in his report.
Housing affordability is unlikely to change much in the near term, Kreiger said. Wages will rise over time, but not quickly. Home sales prices “may level off and may come down a bit,” but not significantly, he said.
Interest rates are the most realistic variable that could help drive the index back down, he said.
Barring another major event like the pandemic, the rate is “not going to come down to where it was,” Kreiger said. “And depending on how things go with inflation, it may not actually happen for quite some time, but eventually they will come back down and create more of a normal situation.”
Anchorage’s average affordability index between 2002 and 2023 is 1.47.
In order to get back to the average affordability, wages would need to increase 22.5%, or home sales prices would need to drop by 18.4% — or around $90,000.
If only the average interest rate for a mortgage changed, it would need to drop to 4.5%.
The impact of higher mortgage costs is now biting hard. Three million UK households face the prospect of having to renew their mortgage within the next two years as their fixed-rate periods come to an end. While nearly two-thirds of all borrowers have already remortgaged at more expensive rates, a large number are still waiting to do the same.
The Bank of England’s recent financial stability report highlighted how vulnerable household budgets are to increased mortgage costs. Many are still on fixed rates below 3% for mortgages they borrowed before the interest rates started to rise in December 2021. According to the bank, around 400,000 of these households will experience very large increases in their monthly payments, of 50% or more.
This is because the mortgage rates now being offered are above 5% for two-year fixed-rate deals, and around 6% for house buyers with lower deposits. For a household with a mortgage debt of around £200,000, the UK average, a mortgage rate rise from 2% to 5% increases the monthly repayment costs by about £500.
Financial markets expect a base rate cut by the Bank of England on August 1 2024. William Barton
Mortgage prices are directly linked to the Bank of England’s base rate. They have reached these high levels due to soaring increases in the base rate, as the UK’s central bank sought to reduce inflation to the desired level of 2%.
The good news is that as inflation has now eased from its peak of over 11% in October 2022 back to 2% in May 2024, rates cuts are probable soon. Financial markets expect the first cut by the Bank of England, possibly of 0.25 percentage points, on August 1 2024.
The bad news is that mortgage rates still probably won’t drop to the ultra-low levels of below 2% seen between 2009 and 2021. Historically, mortgage rates had never been below 4% before that period, at least since banking records began in 1853. Experts stress that the new normal for mortgage rates in the medium-to-long term will be between 3.5% and 4.5%. Households have almost no option but get used to these higher costs.
Furthermore, the process of central bank rate cuts is slow. Current market expectations are that the bank rate will ease to an annual average of around 3.5% in 2026. High-street banks charge slightly higher rates for mortgages, compared with the base rate, to cover their operational costs. Hence, there is still a couple of years to go to reach the predicted mortgage rates of 3.5-4.5%.
How are households coping?
In recent years, households have been under pressure due to soaring living costs with inflation high. And while the rate of inflation has been decreasing recently, this does not mean prices are going down. They are still increasing, just at a slower rate.
For some people, robust wage growth and low unemployment levels have helped them cope with the cost of living crisis. But the Bank of England’s latest financial stability report highlights that low-income households suffer most from the effects of increased living costs and mortgage rates.
The bank’s recent survey found that 34% of UK households talked about interest rises putting pressure on their finances. Many cope either by dipping into their savings or putting less aside then they normally would. So, the bank expects many people’s savings to run down in the coming years, making a lot of households less financially resilient.
According to the survey, many households whose monthly mortgage repayment had risen said they were spending less, taking up additional work, or looking for cheaper properties.
How people are making savings:
Bank of England/NMG household survey data
Those without the comfort of a savings buffer may have fallen into arrears. Others have had their homes repossessed. Both arrears and repossessions rates have been steadily increasing, albeit still lower than during the global financial crisis of 2007-08. Mortgage repossessions by lenders have risen in England and Wales to the highest levels since 2019.
Households also have to borrow for much longer to be able to cope with rising costs. The proportion of first-time buyers with mortgages lasting for 36 to 40 years has increased to almost 20%, compared with only 6% prior to December 2021. These borrowers will have to make repayments well into retirement, given the average age for first-time buyers is now around 34.
Share of mortgages with 36- to 40-year terms in the UK
If someone is worried about their mortgage payments and the prospect of renewing at a higher rate, there are a number of options they may consider to reduce the burden. Taking advice from an independent mortgage adviser can help, as they often have access to better deals.
A mortgage can be extended, or switched to interest-only, to lower the monthly costs. However, these options mean it will take longer to repay the mortgage.
Making sure the mortgage is not based on higher standard variable rates (SVRs) is also important. This is the rate borrowers are automatically moved onto if they do not remortgage when their fixed rate ends.
If someone has bought a home using the government’s Help to Buy loan scheme, they should keep this loan as the rates are more competitive.
Finally, there is always the possibility of talking to the current mortgage lender, as banks are usually willing to help borrowers who are facing repayment problems.
LOS ANGELES — The average rate on a 30-year mortgage rose this week, pushing up borrowing costs on a home loan for the first time since late May.
The rate rose to 6.95% from 6.86% last week, mortgage buyer Freddie Mac said Wednesday. A year ago, the rate averaged 6.81%.
The uptick follows a four-week pullback in the average rate, which has mostly hovered around 7% this year.
When rates rise they can add hundreds of dollars a month in costs for borrowers. The elevated mortgage rates have been a major drag on home sales, which remain in a slump dating back to 2022.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also rose this week, pushing the average rate to 6.25% from 6.16% last week. A year ago, it averaged 6.24%, Freddie Mac said.
Mortgage rates are influenced by several factors, including how the bond market reacts to the Federal Reserve’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, which topped 4.7% in late April, has been generally declining since then on hopes that inflation is slowing enough to get the Fed to lower its main interest rate from the highest level in more than two decades.
Fed officials have said that inflation has moved closer to the Fed’s target level of 2% in recent months and signaled that they expect to cut the central bank’s benchmark rate once this year.
But until the Fed begins lowering its short-term rate, long-term mortgage rates are unlikely to budge from where they are now.
Most economists think the Fed’s first rate cut will occur in September, with potentially another cut by year’s end. But mortgage rates could begin easing in coming weeks, if bond yields move lower in anticipation of a Fed rate cut, said Lisa Sturtevant, chief economist at Bright MLS.
“While today’s report is not what homebuyers were hoping for, we may actually start to see rates fall sooner than expected,” she said.
Mortgage rates fell to historic lows during the pandemic, setting off a homebuying frenzy that sent home prices soaring. Between 2019 and 2023, the median national sales price of previously occupied U.S. homes jumped more than 43%. And despite declining sales this year, home prices hit an all-time high in May of $419,300.
High home loan borrowing costs and record-high home prices discouraged many would-be homebuyers this spring, traditionally the busiest period of the year for the housing market.
Sales of previously occupied U.S. homes fell in May for the third month in a row, and indications are that June saw a pullback as well.
Most economists’ projections call for the average rate on a 30-year home loan to remain above 6% this year. That’s still double what the average rate was just three years ago.
“We are still expecting rates to moderately decrease in the second half of the year and given additional inventory, price growth should temper, boding well for interested homebuyers,” said Sam Khater, Freddie Mac’s chief economist.
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Mortgage rates look like they have room to keep dropping in July after a closely-watched gauge of inflation showed the economy continued to cool in May.
The personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred gauge of inflation, fell to 2.56 percent in May from a year ago, the Commerce Department’s Bureau of Economic Analysis reported Friday.
It was the second-consecutive month that annual inflation inched closer to the Fed’s 2 percent target, raising the odds that the central bank will start bringing short-term interest rates down as soon as September.
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Core PCE, which excludes the cost of food and energy and can be a more reliable indicator of underlying inflation trends, dropped to 2.57 percent in May — the lowest reading since March 2021. The Core PCE index hasn’t moved away from the Fed’s 2 percent target since January 2023.
Ian Shepherdson
“Looking ahead, we see little chance of a lasting and broad-based re-acceleration in the core PCE deflator after the slowing in April and May,” Pantheon Macroeconomics Chief Economist Ian Shepherdson said in a note to clients. “Accumulating labor market slack is increasingly weighing on wage growth, commodity prices are broadly flat, supply chains remain fluid, margins are under increasing pressure, and newly-agreed rents are rising slowly.”
While Pantheon economists expect core PCE to pick up slightly from May to June, after that they’re looking for “a multi-month run” of decelerating inflation.
“If we’re right, the Fed should be confident enough by its meeting in September that core PCE inflation is heading sustainably back to 2 percent that it can start to ease,” Shepherdson said.
Futures markets tracked by the CME FedWatch tool on Friday put the odds of at least one Fed rate cut in September at 64 percent, up from 46 percent on May 28.
PCE and Core PCE trending down
After peaking at 7.12 percent in June 2022, a series of Fed rate hikes gradually tamed inflation to 2.48 percent in January. But the PCE price index showed inflation worsening in February and March, sending mortgage rates rebounding as hopes for multiple Fed rate cuts in 2024 dimmed.
The latest declines in PCE and core PCE were in line with expectations, as previous data releases that the indexes build on — including the Consumer Price Index (CPI) and Producer Price Index (PPI) — also suggested that inflation eased in May.
Bond market investors who fund most mortgages initially snapped up 10-year Treasury notes after the PCE numbers for May were released at 8:30 a.m. EDT Friday, pushing yields as low as 4.26 percent. But 10-year Treasury yields, a barometer for mortgage rates, quickly climbed back above Thursday’s close of 4.29 percent.
Daily loan lock data tracked by Optimal Blue, which lags by a day, showed rates for 30-year fixed-rate mortgages averaging 6.88 percent Thursday, down 39 basis points from a 2024 high of 7.27 percent registered April 25. A basis point is one-hundredth of a percentage point.
An index maintained by Mortgage News Daily (MND) showed rates for 30-year fixed-rate loans climbed 2 basis points Friday, to 7.07 percent. Rates reported by MND are higher because they are adjusted to estimate the effective rate borrowers would be offered even if they’re not paying points. Optimal Blue tracks contracted rates, including those locked in by borrowers who pay points to get a lower rate.
Mortgage rates are largely determined by investor demand for mortgage-backed securities, and investors are skittish about the prospects that the Fed will continue its “higher for longer” rate strategy. Fed policymakers indicated at their June 12 meeting that they’ll be cautious about bringing rates down until they’re certain that inflation won’t surge again.
Speaking to bankers at a conference Thursday, Federal Reserve Governor Michelle Bowman attributed much of last year’s progress on inflation to “easing of supply chain constraints, increases in the number of available workers due in part to immigration, and lower energy prices.”
Michelle Bowman
Bowman called it “unlikely” that those factors will contribute to bringing inflation down more in the future. Supply chains “have largely normalized, the labor force participation rate has leveled off in recent months below pre-pandemic levels, and an open U.S. immigration policy over the past few years, which added millions of new immigrants in the U.S., may become more restrictive.”
Additional “upside risks” that inflation will worsen include potential spillovers from regional conflicts that might disrupt global supply chains and send food, energy, and commodity prices soaring.
“There is also the risk that the loosening in financial conditions since late last year, reflecting considerable gains in equity valuations, and additional fiscal stimulus could add momentum to demand, stalling any further progress or even causing inflation to reaccelerate,” Bowman said.
Bowman, rated by Reuters as the most hawkish Fed policymaker for her hardline stance against inflation, reiterated that she’s willing to raise rates if needed — a position she’d previously staked out in October and May.
“While the current stance of monetary policy appears to be at a restrictive level, I remain willing to raise the target range for the federal funds rate at a future meeting should the incoming data indicate that progress on inflation has stalled or reversed,” Bowman said Thursday.
Mortgage rates expected to keep falling
Source: Fannie Mae Housing Forecast, June 2024; MBA Mortgage Finance Forecast, June 2024.
But the recent decline in mortgage rates from 2024 highs has revived interest among homebuyers, and housing industry economists think rates have more room to come down this year and next.
Homebuyer demand for purchase loans picked up for the third-consecutive week during the week ending June 21 after mortgage rates hit their lowest levels in months, according to a weekly survey of lenders by the Mortgage Bankers Association (MBA).
In a June 24 forecast, MBA economists said they expect rates on 30-year fixed-rate loans to drop to 6.6 percent during the fourth quarter of 2024, and to an average of 6.0 percent during Q4 2025.
Fannie Mae economists said on June 10 that they envision 30-year fixed-rate loans will drop to 6.7 percent during Q4 2024, and to 6.3 percent by the end of next year.
More listings and lower mortgage rates should boost 2025 home sales by 9.3 percent, to 5.3 million transactions, Fannie Mae forecasters said.
But analysts at Bank of America Global Research think home sales might not rebound until 2026 if home prices continue to rise and inventory continues to be constrained by the “lock-in effect” experienced by homeowners who refinanced when rates were at historic lows.
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The Seattle area is a hot housing market. According to Zillow, the average home price in the Emerald City is currently $884,828, up 4.3% year over year.
As home values have risen sharply, this has made the conundrum facing the area’s seniors more difficult to navigate: If they need to downsize, they may not be able to move into a home in their price range, much less be able to obtain a mortgage at a rate that can be easily absorbed on a fixed income.
But a nonprofit organization in the Seattle area is seeking to help more seniors renovate their homes to age safely. And a state property tax relief program recently raised its maximum income threshold to allow more Puget Sound-area seniors to qualify.
Rebuilding Together South Sound, based south of Seattle in Tacoma, “offers no-cost repairs to homeowners with low incomes,” according to reporting at the The Seattle Times. “Projects range from small fixes, like installing a grab bar, to significant repairs on porches and roofs.” But cost increases are arriving at the same time the organization is seeing an influx of potential clients, according to program director Rachel Lehr.
The group can only afford to help roughly 150 applicants per year, but it is regularly seeing as many as 250 to 300 applicants in that time frame.
The COVID-19 pandemic provided a boost to the organization’s funding for a time, but that also arrived in concert with a supply chain shortage that saw the cost of materials increase significantly. Lehr told the Times that projects went from an average cost of $3,000 to $4,000 to “probably double that.”
“Overall Seattle-area construction costs have stabilized in the last year, but remain 40% higher than pre-pandemic,” the Times noted.
But the area is also seeing a different problem simultaneously. People with homes that may not be appropriate for aging are not applying for enough relief, giving similar organizations in the region an opposing dynamic to work with.
“It is unclear what’s behind the lagging rate of applications for some home repair programs, but multiple factors could be at play,” the Times reported. “Soaring housing costs have driven many people with lower incomes out of Seattle and into surrounding communities. Nonprofits can struggle to reach people with limited internet use, and older adults are sometimes reluctant to seek help.”
While some of these organizations are struggling to get the word more broadly distributed throughout the Seattle region, there could be more help for a wider swath of the area’s seniors due to a recent revision to a property tax relief program.
“After a recent state law change, a long-standing property tax break program for older homeowners and people with disabilities is now open to people with higher incomes, making more Washingtonians eligible,” the Times reported Monday. “In King County, for example, the change boosted the income limit for the program by 44% this year. Homeowners making up to $84,000 can now qualify.”
There are a “flood” of applicants seeking tax assistance, the Times reported. Cost increases are indiscriminately striking workers and retirees, and are impacting renters and homeowners alike.
“Folks are trying to find whatever way they can to try and keep their costs down,” said Christina Clem, spokesperson for AARP Washington. The local chapter of the influential senior lobbying organization worked to expand the property tax exemption and ”has encouraged tens of thousands of its members to apply,” the Times reported.
Despite being a homeowner in a sought-out region, many are facing affordability challenges related to the additional obligations, Clem told the outlet.
“Even if you have your home paid off, if you can’t afford the property taxes, that’s a problem,” she said.