Characterized by rising median price and median rent price, Greensboro real estate market is one of the hottest in the country. Despite the sharp appreciation since 2021, this condition provides a unique opportunity for buy-and-hold investors trying to make a fortune in the Midwestern real estate market. In addition, housing units in the region remain affordable despite the sharp price increases over the last five years.
As reported by Spectrum News 1 in April 2022, Greensboro is also one of the fiercest real estate markets in the state of North Carolina. Buyers are coming from different parts of the country to get a piece of property in the city. So, if you wish to secure several inventories in the region, you have to act fast. Furthermore, the news report also indicated highly-competitive markets across different price points.
As previously mentioned, Greensboro is a city located in the State of North Carolina and is a part of the Piedmont Triad. With only 134.20 square miles (347.84 km2) of city area, Greensboro is among the smallest cities in the United States. However, its small size doesn’t stop the economy from growing exponentially. This article provides several statistics on Greensboro real estate market, its population, and its economy.
Greensboro Metro Population
The city of Greensboro is the county seat of Guilford County, North Carolina. The city of Greensboro is also a part of the Piedmont Triad, along with Winston-Salem and High Point. According to the 2020 report by the United States Census Bureau, the city had over 299,035 total population. This makes Greensboro the third most populated city in the State of North Carolina and the 69th most populated city in the United States.
In addition, according to the United Nations World Population Prospects, the current metro population of Greensboro is around 369,000, a 1.1% increase since 2021. According to the data, the metro area of Greensboro had a relatively stable population growth over the last three years, with an average of 1.12% of population increase each year.
In terms of population growth, a 2020 report by the United States Decennial Census revealed that the city had over 10.9% of population growth over the last 10 years. Among the 299,035 residents, 22.0% of them are millennials. As the city’s economy is improving, more people are attracted to move to Greensboro. This resulted in an increase in the workforce, which is an ideal condition for real estate investors.
In the past, some of the top industries in Greensboro revolved around textiles, tobacco, and furniture manufacturing. At the present, the city has become one of the most popular locations to open family businesses. Besides the small family businesses, the economy of Greensboro is also supported by transportation, professional business, and manufacturing companies. Some of the most prominent companies headquartered in Greensboro City include Honda Aircraft Company, FedEx, HAECO Americas, Kayser-Roth, Volvo Trucks of North America, etc.
In addition, the Japanese auto manufacturing giant Toyota would operate a $1.3 billion battery plant in the city of Greensboro, according to Toyota Press Room in December 2021. With such massive support from big companies, Greensboro’s GDP remains in sharp ascend since 2010. As reported by the United States Bureau of Economic analysis, the city’s GDP peaked at $42,922.463 in 2019. The sharp rise was followed by a slight decline to $42,033,244 in 2020 due to the COVID-19 pandemic.
Greensboro Job Market
The job market availability and unemployment rate are often considered when choosing a region’s suitability for real estate investment. Luckily, data shows that the job market in the city of Greensboro is thriving. As reported by the United States Bureau of Labor Statistics, Greensboro has a 4.0% unemployment rate in May 2022, a slight decrease from 4.2% in January.
According to a recent report by the US Bureau of Labor Statistics, some of the biggest industries in Greensboro by the number of jobs available are trade/ transportation, professional business, and manufacturing, with the total available jobs of 73.800, 54,400, and 54,200 respectively. Furthermore, a recent document released by Greensboro-NC.gov revealed that the city’s job market has grown by 12% over the last 10 years.
Cost of living Greensboro, NC
In January 2021, UpHomes revealed that Greensboro is among the cheapest cities to live in the State of North Carolina. Furthermore, US News’s 2021 report indicated that Greensboro has a lower cost of living than the national average. While most residents are paid the same amount as the average American, the price for housing units tends to be lower than they are in many other metro areas in the Midwest.
Furthermore, a July 2022 report by Numbeo.com revealed that the rent prices in Greensboro are 31% lower than in other major cities in North Carolina. In addition, the grocery prices in the city of Greensboro are also 5.55% lower than in Charlotte, another big city in North Carolina. Unfortunately, there is not enough data to calculate the average monthly cost for an individual or a family in the region.
Overview of Greensboro Real Estate
Greensboro’s real estate market may not be the best market for amateur buyers. As reported by the Greensboro Local News in 2020, the city has a severe shortage of affordable housing. In addition, inflation caused housing prices to climb up, reaching an all-time high within the last two years. This condition urges investors to act aggressively at securing the soon-to-be rare investment properties.
Below are some useful statistics that may help you decide your next move when buying Real estate in Greensboro, NC.
Greensboro Real Estate
Louisville’s real estate market has experienced a somewhat stable journey for the last five years. However, the overall home values seem to be on a continuous rise. As reported by Zillow in June 2022, the Zillow Home Value Index for the Greensboro area is $242,389 with a massive 23.6% of appreciation over a year. As reported by Realtor.com, the median listing price for homes in Greensboro, NC is $145 per square foot, which is similar to other Midwestern cities like Louisville or St. Louis.
Furthermore, the real estate website also estimated that the average homes are sold 3.73% above the listed price, which means that buyers typically pay the same exact amount for the price of the home when listed online. Based on the homes/ buyer’s ratio, Realtor.com determines that the Greensboro real estate market is in heavy favor of the sellers. This means that the supply of housing units is lower than the demand.
Greensboro Rental Property Market
As of 2020, the United States Census Bureau revealed that 50.6% of housing units in Greensboro City are renters-occupied. With more than half housing units available for rent, investors can quickly gain a fortune by investing in rental housing units in the city. Besides the high number of available inventory, this ideal condition is also fueled by the rapid appreciation of the median rent price.
As of August 2022, Zumper estimated that the median rent price for three-bedroom houses in Greensboro had reached $1,665. Since January this year, the average rent for a single-family home has increased by $110 from %1,555. This also means that the median rent in the city has increased by 11% yearly.
However, it is essential to note that the median rent in Greensboro City varies between neighborhoods. According to Zumper, some of the most affordable neighborhoods in Greensboro are Tolbert, Downtown Greensboro, and Brice Street Area, where the average rent can go from $435 to $630 per month. On the other hand, the most expensive neighborhoods in Greensboro are Saddlecreek, Belwood Village, and Adams Farm, where rent can go between $1,818 to $1,735 a month.
Historic Price Change and Housing Affordability
Historic price change and Housing Affordability Index (HAI) are two of the most essential aspects to consider in real estate investment. To put it simply, you can use historic price change data to determine how many housing units you can buy with a certain amount of money. On the other hand, the housing affordability index determines whether the typical family earns enough income to fulfill the qualification for a mortgage loan.
In the case of Greensboro, the historical price data suggest that the price of housing units are rising rapidly over the years. A report by Redfin suggests that the median sales price for all home types in Greensboro reached a record-breaking price in June 2022 with $270,000 of the median sale price and +16.9% year-over-year growth. This number is significantly higher compared to the median price in June 2017 with $155.000 and -11.7% year-over-year growth.
Other data from the US Federal Housing Finance Agency revealed that the house price index for the Greensboro-High Point region has increased exponentially in the last 10 years. The record shows that in 2012, the house price index in the region reached 141.31. In 2022, the number has increased exponentially to 232.73.
In terms of housing affordability, several data indicate that the housing affordability index in the Greensboro-High Point region had experienced a somewhat declining trend. For instance, data from the November 2018 report by the National Association of Realtors shows that the region’s HAI reached its highest point at 213.1 in 2017.
However, the July 2021 data from the HomeTownLocator revealed that the HAI in Greensboro had reached 152, a massive decrease since 2017 with an HAI of 213.1. This means that Homes for sale in Greensboro, NC have gradually become more costly.
Greensboro Real Estate Market Forecast
For most Greensboro real estate investors, uncertainty is one of the downsides of investing. Luckily, we can roughly predict the future of a real estate market by looking at the current market trend. In terms of future forecasts, Greensboro seems to be on a constant trend of appreciation.
The latest report from NeighborhoodScout shows that the home appreciation rate in Greensboro, NC has been above average over the past 10 years with a 61.25% of the cumulative rate. On top of that, the United States Federal Housing Finance Agency has also reported that the house price index for the Greensboro-High Point region had reached an all-time high with 232.73 in 2022.
As previously mentioned, inflation is the primary cause of the rising home price in Greensboro. If the economic trend continues to persist, Wallet Investors predicts that the median home value in Greensboro will reach $165,900 within the next 12 months and will reach $185.380 within the next five years.
Greensboro Real Estate Market FAQs
- Is Greensboro a good place to invest in real estate?
Greensboro is ranked as the 90th best place to live by the US News & World Report due to the city’s thriving economy and low cost of living, which is ideal for property investment. Considering the fast appreciation rate in home prices over the last five years, Greensboro can be a good place to invest in real estate.
- What is the hottest real estate market in NC?
The real estate investment website Clever dubbed Durham, Charlotte, Raleigh, Asheville, and Cary as the top five hottest real estate markets in the state of North Carolina. Their rank is based on the rapid increase in rent and home prices and other factors.
- Is Greensboro a seller’s market?
As of June 2022, Realtor.com suggests that Greensboro real estate market is in heavy favor of the sellers. This means that more people are looking for houses than the number of housing units available in the region.
- Is there a shortage of homes for sale in Greensboro, NC?
As reported by the Greensboro News & Record in 2020, there is a severe shortage of affordable housing as a result of the COVID-19 pandemic. However, the city seems to have recovered from the condition recently.
Compared to other Midwestern cities, Greensboro’s real estate market is one of the fastest-appreciating markets in terms of home prices. Despite the soaring prices, Greensboro real estate investors don’t hesitate to act fast at securing the hottest unit in the region. As investors compete with big corporations, Greensboro’s real estate market is one of the most highly competitive in the nation.
So, if you wish to partake in one of the hottest real estate markets in the country, consider investing in Greensboro real estate market. With rapidly increasing rent and home prices, this Midwestern city can be a gold mine for long-term and short-term investment.