The Charlotte Regional Business Alliance hosted a panel discussion on housing at its annual Leadership Retreat last week in Greenville, South Carolina.
The panel, entitled, “Creative Housing Solutions to Keep the Charlotte Region Competitive,” touched on the region’s housing market, affordability, and solutions to increase overall supply to accommodate growth. CLT Alliance 1st Vice Chair Ali Summerville moderated the panel.
Antony Burton, principal economic researcher at the CLT Alliance, provided an overview of the housing market before the panel discussion. Burton noted that housing prices are up in Charlotte, but that the market is still relatively competitive. Charlotte’s median sales price remains below Austin, Nashville, and Raleigh, but above Atlanta and Tampa.
Burton noted that “while the region is competitive compared to many peer markets, that will be a small consolation for those who already live here and are searching for an affordable place to live. About 1 in 2 renters and 1 in 5 homeowners are cost-burdened in the Charlotte metro.”
Anne Marie DeCatsye, CEO of the Canopy Realtor Association, started the conversation by explaining the housing supply shortage, saying it is the most critical issue aside from interest rates.
DeCatsye noted there is currently a 1.4 to 1.6 month supply of homes for sale, while a balanced market would have a 6 month supply.
DeCatsye said the lack of housing supply impacts businesses directly.
“The business community can’t seek more jobs and not have anywhere for people to live,” she said.
In assessing the center city housing market, a cooperative effort is needed to ensure housing is available to residents who want to live there.
Michael J. Smith, president and CEO of Charlotte Center City Partners, said multiple tools are needed to assist with increasing housing supply. This could include the Low-Income Housing Tax Credit program, provisions in the Inflation Reduction Act, as well as other state and local incentives.
Smith also said his organization is evaluating peer markets that have faced affordability issues and tried creative housing solutions. Denver, Austin, and Nashville are three markets he mentioned as experiencing precipitous price increases. A steady housing supply is key to avoiding similar price increases, he said.
Part of Charlotte Center City Partners’ review of other markets focuses on the viability of office to residential conversions. Smith said the solution is a complicated one, but he wants to learn best practices from other markets to see if it can be deployed in Charlotte.
In evaluating the broader regional housing market, tailored solutions are needed for different communities. Jenn Bosser, president & CEO at Iredell County Economic Development Corporation, said that in Iredell County alone, there are three different regions with different housing needs.
While Bosser’s main responsibilities focus on business recruitment, she said she also must be a resource for businesses on workforce, zoning, and even child care. Bosser said a holistic approach is needed and housing needs to be a priority in business recruitment.
DeCatsye added that the government and private sector must work together to address the housing supply issues facing the market. She noted that extension of the Homestead Act exemption, a policy supported by the CLT Alliance, could be part of the solution in North Carolina, and something that will help with generational wealth creation.
Following the panel discussion, Laura Yates Clark, president & CEO of the United Way of Greater Charlotte, shared an update on the A Home for All program.
She stressed the need to intervene earlier so that homelessness remains rare and brief. Identifying the early signs of financial stress and other issues is key to getting people necessary services to avoid homelessness.
