North Carolina Home Selling

North Carolina's median home sale price stood at approximately $380,000 as of September 2025, well below the national median of $435,000. This figure gave North Carolina the edge in affordability compared with neighboring South Carolina and Tennessee, whose median home sale prices during the same period were $382,000 and $391,000, respectively.

The Tar Heel State also outpaced many of its neighbors in closed sales volume, recording roughly 12,000 sales in September 2025. In contrast, neighboring states like Virginia and South Carolina typically average closer to 7,000-8,000 monthly home sales.

The median days on market (DOM) for homes in North Carolina jumped to 59 in September 2025, about one week longer than the national median but faster than in neighboring Georgia ( 62 days), Tennessee ( 65 days), and South Carolina ( 83 days). Among states that share a border with North Carolina, only Virginia ( 39 days) saw homes move more quickly.

North Carolina is one of the most active states for homebuilding. With an average of 9 new building permits per 1,000 residents, the state issues significantly more permits per capita relative to the national average of around 5.2 permits per 1,000 residents. Despite building activity, inventory remains tight, with just 3 to 4 months of supply, while a balanced market typically has 5-6 months.

In terms of property taxes, the state maintains a relatively low effective rate of about 0.75%, putting it slightly below the national average of around 0.99%. While counties like Wake and Mecklenburg align closely with the overall average, others, such as Northampton and Scotland, tend to have higher real estate taxes.

Finally, North Carolina's foreclosure rate was above the national average in September 2025, largely due to a 63% year-over-year increase. With approximately 1 foreclosure in every 3,937 homes, the state ranked 15th in foreclosure activity, but still recorded lower foreclosure rates than Georgia (1 in 3,584) and South Carolina (1 in 2,883).

North Carolina's real estate market presents a diverse mix of investment opportunities shaped by varying property values, regulatory conditions, and activity. The unique characteristics of the real estate market in the Tar Heel State make North Carolina an appealing destination for anyone looking to invest in real estate, whether through long-term rentals, new builds, or value-add flips.

If you're considering investing in North Carolina real estate, these locations may offer strong development appeal and the potential for a solid return on investment (ROI):

• Charlotte (Mecklenburg County): As the state's largest city and a national banking hub, Charlotte offers strong appreciation prospects due to consistent population growth, jobs creation, and a limited housing supply, especially in neighborhoods near Uptown and South End.
• Raleigh (Wake County): With a booming tech scene and access to top universities, Raleigh experiences high buyer demand and rising prices, fueled by both in-migration and constrained new development space.
• Durham: Known for its research-driven economy and medical institutions, Durham's property values are climbing thanks to innovation-based jobs growth and downtown revitalization, making it a prime location for redevelopment.
• Wilmington: A coastal city with a rich history and a growing tourism sector, Wilmington sees strong seasonal and long-term rental demand, particularly in beach-adjacent communities where new construction is limited.
• Cary: Often ranked among the best places to live in the U.S., Cary combines excellent schools, low crime rates, and a booming suburban job market, which keeps housing prices competitive and development highly sought after.
• Asheville: Nestled in the Blue Ridge Mountains, Asheville attracts remote workers, retirees, and short-term rental investors with its scenic charm and tight housing inventory.
• Greensboro: With affordable entry prices and ongoing downtown revitalization, Greensboro offers promising ROI through value-add opportunities and multifamily development in underutilized areas.
• Chapel Hill: Anchored by the University of North Carolina, Chapel Hill's consistent housing demand from students, faculty, and healthcare workers supports price stability and appreciation.
• Hickory: A hidden gem in western North Carolina, Hickory's emerging popularity, affordable land, and strategic location near the mountains and I-40 corridor are spurring residential development.
• Concord (Cabarrus County): Close to Charlotte but with more affordable land, Concord offers easier development due to favorable zoning policies, population growth, and local economic initiatives tied to motorsports and retail.

Homes continue to move at a relatively quick pace in North Carolina due to ongoing population growth, limited housing supply, and sustained buyer interest. Currently, homes move to pending in around 30 days, with faster sales often seen in high-demand areas like Cary, Raleigh, and Charlotte.

Factors that influence how fast a home sells in the state include its layout, size, location, and level of modernization. Homes with the following characteristics typically sell faster in North Carolina:

Investors, homeowners, and developers who are planning on selling a home or developing property in North Carolina must understand zoning laws, permitting rules, and other regulatory requirements in the property location. Understanding these laws and requirements is critical to maximizing ROI and closing the transaction without any legal issues, as these rules directly impact a property's permissible uses, development potential, and legal marketability.

In addition, buyers are increasingly requesting zoning compliance letters before closing to verify that a property is up to code and free from zoning violations or unresolved permit issues. As a result, it's even more important for home sellers to comply with any local laws and requirements.

Below is a list of jurisdictions and how they handle zoning, permits, and regulatory requirements in North Carolina.

Areas with Strict Zoning Laws

• Durham County (City of Durham): Enforces the Unified Development Ordinance (UDO) with rigid requirements for setbacks, building heights, and use changes.
• Mecklenburg County (City of Charlotte): The UDO adopted in recent years emphasizes form-based codes, requiring strict adherence to zoning categories and development form.
• Orange County (Chapel Hill): Highly regulated, especially around environmental overlays and neighborhood preservation.

Areas with Less Bureaucratic Zoning Laws

• Cleveland County (Shelby): Known for accommodating residential and mixed-use developments with modest zoning restrictions.
• Johnston County: Offers faster permitting and simpler zoning rules; ideal for developers seeking fewer regulatory barriers.
• Randolph County: Minimal zoning in some rural zones; more relaxed permitting compared to urban counties.

Areas Requiring a Special Permit and Public Hearing

• Wake County (Raleigh): Many uses in residential and commercial zones require special permits that go through a public notice and hearing process.
• Buncombe County (Asheville): Conditional zoning cases involve public hearings, especially for developments that impact traffic or character.
• New Hanover County (Wilmington): Certain developments require special use permits involving planning board and county commissioner review.

Areas Requiring a Certificate of Occupancy (CO) or Certificate of Compliance (CC) Before Legal Occupation

• Guilford County (Greensboro): Following renovations, a CO/CC is mandatory before property occupancy.
• Cabarrus County (Concord): Requires final inspection and CO for any major structural work.
• Cumberland County (Fayetteville): A CO is needed before legal use of the structure, especially after renovation or commercial-use conversion.

Areas with a Historic Commission Requiring Special Approvals

• City of Wilmington: Historic Preservation Commission must approve exterior alterations in the Downtown Historic District.
• Hillsborough (Orange County): Design reviews and material approvals are required in the historic overlay districts.
• Asheville (Montford and Biltmore Village areas): Historic Resources Commission approval is needed for materials, facades, roofing, and windows.

When selling or developing property in North Carolina, it's important to remain in compliance with local zoning ordinances, permit procedures, disclosure laws, and historic preservation rules. Following these guidelines and working within local frameworks helps prevent legal setbacks and maximizes property value while minimizing development timelines.

However, the regulatory landscape varies widely across the state. While some cities support growth with streamlined processes, others pose greater challenges due to bureaucracy or community resistance.

Development-Friendly Areas

These areas are known for their pro-growth policies, efficient permitting systems, and local support for new residential construction.

• Charlotte (Mecklenburg County): As one of the fastest-growing metros in the Southeast, Charlotte offers developers zoning flexibility through its UDO, which was updated to streamline approvals and encourage density in key growth areas.
• Concord and Kannapolis (Cabarrus County): These neighboring cities have made efforts to reduce permit turnaround times and offer incentives for infill development, making them appealing to small-scale developers.
• Clayton (Johnston County): With a growing suburban population, Clayton actively supports new housing projects through simplified planning procedures and builder incentives.

Moderately Regulated Areas

These locations enforce reasonable development controls but may have longer review periods or limited zoning flexibility in select districts:

• Raleigh (Wake County): Although supportive of growth, Raleigh's regulatory framework includes form-based zoning and community engagement mandates that can slow approvals, especially near historic neighborhoods or environmentally sensitive areas.
• Greensboro (Guilford County): Greensboro uses a tiered zoning system and emphasizes neighborhood input, particularly for rezoning requests or multifamily projects. However, the city continues to support redevelopment in its downtown core.
• Fayetteville (Cumberland County): The city has a manageable permitting system, but local ordinances for stormwater and environmental impact can lengthen development timelines, particularly on larger lots.

Highly Restrictive or Bureaucratic Areas

These communities often resist high-density or large-scale development and are known for long approval processes or strict design and use controls.

• Chapel Hill (Orange County): With a strong preservationist tradition and community involvement in planning, Chapel Hill enforces complex zoning overlays, lengthy public hearings, and strict environmental requirements.
• Asheville (Buncombe County): Known for its progressive culture and mountain charm, Asheville frequently faces strong public resistance to new development, especially high-density housing, which can delay or block projects.
• Carrboro (Orange County): Adjacent to Chapel Hill, Carrboro maintains a slow-growth philosophy, with strict tree protection ordinances and density restrictions that make large-scale development difficult to pursue.

Regulatory Climate Factors to Watch

The regulatory climate for the real estate market in North Carolina is not uniform. Local rules and planning regulations vary significantly from coastal towns to urban centers. If you're planning to develop, renovate, or flip property, understanding these regulatory factors is critical to the success of your project.

The table below shows a summary of the most common regulatory factors and where they're typically found in North Carolina:

*NIMBYism - Not in My Backyard

To succeed in North Carolina's housing market —which is driven by population growth, strong buyer demand, urban revitalization, and suburban expansion — flippers must adapt to local market dynamics and choose the right strategies to suit prevailing trends. Below are some of the most effective flipping and resale methods investors can use when aiming to secure a strong ROI in the North Carolina real estate market:

Pricing a home correctly is important for obtaining a strong return on investment. That's why for sellers in North Carolina's competitive and diverse housing market, working closely with a local real estate agent or licensed appraiser — who can conduct a comparative market analysis (CMA) — is advised. This analysis should review active, pending, and recently sold comparable properties within the past 90 days to determine the most competitive and realistic listing price. Accurate pricing helps sellers avoid extended days on market, lowball offers, or unnecessary price reductions that may weaken negotiating power.

Some common approaches to use in different North Carolina regions to attract buyers while maximizing value include the following:

If you're selling your home in North Carolina, you should adopt a pricing strategy that aligns with the prevailing market conditions in your area. Since no single approach fits all properties, applying the right method may make a significant difference in both selling time and final profit.

The table below offers guidance on which pricing strategy best suits common scenarios in today's real estate landscape across the state:

In recent years, North Carolina has experienced dynamic shifts in employment, population patterns, and regulatory frameworks that collectively influence housing availability, pricing, and investment strategies. Understanding how wage growth, migration trends, zoning laws, tax policies, and public infrastructure projects interact to impact the North Carolina real estate market equips stakeholders, buyers, sellers, developers, and policymakers with the insights needed to navigate and profit from the state's evolving property landscape.

Economic Factors

North Carolina's economy continues to support robust housing demand through steady employment and wage growth, particularly in sectors like construction, healthcare, and finance. Recently, the state added 72,400 new jobs, with average hourly wages reaching $33.54, a record high for the state. This economic momentum, coupled with a moderate cost of living, makes the state especially attractive to buyers from higher-cost regions. On the supply side, over 23,400 new residential building permits were issued in the first quarter of 2025, though there was a 5% dip in permit value, suggesting that developers may be shifting from large multifamily builds to more modest or cost-efficient housing projects.

Demographic and Social Factors

North Carolina continues to experience significant population growth. In 2023 alone, more than 339,000 people moved to the state, resulting in a net gain of over 106,000 residents. This influx is concentrated in metros like Charlotte, Raleigh-Durham, Wilmington, and Asheville. In-migration includes not only working professionals and families but also retirees drawn by the mild climate and affordable cost of living. As the state becomes increasingly diverse owing to its immigrant populations from Asia and Latin America, cultural shifts toward suburban living and lifestyle-focused properties are reshaping buyer demands.

Regulatory and Legal Framework

North Carolina's property market is influenced by varied zoning and land-use regulations across municipalities. Over 90% of North Carolinians live under zoning ordinances that often reserve as much as 80%-90% of residential land for detached single-family homes, limiting density and affordability. In addition, as of August 2024, brokers nationwide are prohibited from listing buyer-agent commissions on the MLS, requiring upfront written fee agreements. While this aims to increase transparency, it's also shifting negotiation dynamics in tight markets.

Taxation and Fiscal Policy

North Carolina continues to attract investors and residents alike due to its low property tax burden and pro-business tax policies. With an effective property tax rate of around 0.77%, below the national average, homeowners can expect more manageable recurring costs. North Carolina was also ranked the top state for business in 2025, thanks to its tax structure and incentives for employers. For developers, incentives like Industrial Development Fund grants help reduce infrastructure costs and support housing-related expansion in rural and underserved areas.

Housing Policy and Government Programs

Several North Carolina municipalities, including Charlotte and Wilmington, have introduced mixed-income housing initiatives and homebuyer grants to address affordability and supply shortages. In rural counties, the state has awarded millions in infrastructure grants to prepare land for development, enhancing access to buildable lots and utilities. These programs aim to increase the availability of affordable housing while supporting regional growth.

Infrastructure and Development Trends

North Carolina's property markets are also being shaped by major infrastructure projects, including public transit expansions in Charlotte and commuter rail developments in the Research Triangle region. These improvements enhance accessibility and drive up property values near transit corridors. Additionally, urban densification is gaining momentum, with high-rise mixed-use towers under construction in Charlotte and Raleigh, reflecting demand for walkable city living and integrated commercial spaces.

Market Sentiment and Investor Behavior

While median home prices inched up in September to around $380,000, sales volumes dipped 10.8%, a sign of measured buyer caution in the face of sticky rates and borrowing costs. As a result, creative financing strategies and hybrid equity/debt deals are on the rise as investors chase limited inventory. Meanwhile, strong in-migration continues to fuel multifamily and build-to-rent investment.

North Carolina's real estate market presents a wide range of profitable opportunities for investors, home sellers, and developers. Cities like Charlotte, Raleigh, Durham, and Wilmington offer some of the best returns on investment due to strong population growth, limited housing supply, and ongoing economic expansion. Mid-sized homes (those ranging from 1,500 to 2,400 square feet) with 3-4 bedrooms, modern upgrades, energy-efficient features, and attractive curb appeal tend to draw the most buyers and sell fastest, especially in suburban neighborhoods with good schools and commuter access.

While pro-growth and development friendly on the whole, the regulatory environment varies across the state. Areas like Charlotte, Concord, and Clayton tend to have more development-friendly processes, offering streamlined zoning and permitting. In contrast, towns such as Chapel Hill and Asheville are known for more restrictive regulations and community resistance to high-density development.

Before listing a property for sale, homeowners and flippers are encouraged to explore pricing strategies suited to their market conditions, whether it's charm pricing, urgency pricing, or ordering a professional appraisal.

Overall, economic growth, wage increases, in-migration, infrastructure development, and state-level incentives continue to shape property trends and sustain demand throughout North Carolina.