Recent reports show that 71,240 millennials moved to North Carolina in 2017, while 60,533 moved out. Despite the close numbers, that’s nearly 10,700 of the state’s net gain. While millennials prefer living in urban areas, big cities like New York and Los Angeles are not always the best locations for investment. In fact, smaller cities offer a low-risk, high-return investment in the real estate market – among them are Charlotte, Raleigh, and Durham.
The local areas continue to show a major growth in population as each attracts more than 100 new residents per day. Not to mention, Durham is considered as one of the best places for millennials to live in the United States, based on the number of entry-level jobs, age demographics, entertainment, and the cost of living. In another report, Charlotte ranks as the top city across the nation for attracting the largest growth of millennials seeking to invest in real estate taking over 60% of the market.
Smaller Towns, More Investments
New residents and real estate investors alike are heading to North Carolina in search of new homes, better jobs, more business opportunities, and enrichment. As a result, North Carolina’s estimated population has reached 10.39 million in 2018 with a healthy 1.15% growth rate. The average price of a 3-bedroom in Charlotte would cost 36% less than the same size home in Washington D.C. The smaller markets are placing themselves as top competitors in terms of living costs, employment, recreation, and culture.
Using the Market to Build Wealth
Millennials are known to save for retirement through savings rather than investments, according to a survey from PNC Bank. However, gaining access to the capital markets require a solid financial plan to build wealth. While savings is a great way to start, only 50% of millennials have an emergency fund worth six months of their current salary. The secret to building wealth is to focus on saving money, earning more, and establishing a passive income. Thus, North Carolina’s personal income tax rate is moderately low at 5.75%, meaning you won’t have to worry about housing costs draining your savings away from investable assets.
Research Triangle Fuels the Demand
Another trend in North Carolina’s flourishing market is the urban element growing in suburban areas. Often referred to as the “Research Triangle,” the Durham to Raleigh area of North Carolina is known for its high-tech universities and companies. The region is home to Duke University, North Carolina University and the University of North Carolina at Chapel Hill. In addition, major tech companies such as Lenovo, IBM, General Electric, GlaxoSmithKline, DuPont, and many others provide a high demand for a skilled workforce in the region. In fact, for millennials, the suburbs are the “new” city trends as employers seek young talent for longer terms.
As North Carolina’s attraction rate grows in real estate, venture capitals, and new start-ups, the state only proves to become a market that you wouldn’t want to miss.