Upon reviewing North Carolina’s rental market, a recent analysis revealed significant findings regarding inflation-adjusted median housing values and rent. The data indicates that from 2014 to 2023, the state’s median housing values increased in 77% of counties when adjusted for inflation. This prompted an examination of whether rental costs have followed a similar trajectory.
Statewide estimates from the American Community Survey (ACS) show that inflation-adjusted median rent has risen annually over the same period, marking an increase of more than 20%. Notably, no ACS 1-year estimate was available for 2020, so the Consumer Price Index (CPI-U) was used to adjust estimates to 2023 values.
When considering county-level data, not all areas have experienced this growth. Analysis using ACS 5-year estimates revealed that out of North Carolina’s 100 counties, 83 saw an increase in median rent after adjusting for inflation. Seventeen counties maintained steady rents between the periods of 2018 and 2023.
The counties with unchanged median rents are primarily rural with smaller populations and are generally located outside major metropolitan statistical areas (MSAs), except Gates County. These include Alleghany, Clay, Martin, Avery, Currituck, Northampton, Bladen, Gates, Person, Camden, Graham, Tyrrell, Cherokee, Macon, Washington, Chowan, and Madison.
This divergence suggests a dual economy within North Carolina’s rental market. While metropolitan and suburban areas experience rising rents beyond inflation rates statewide by over 20%, rural counties remain stable despite some experiencing population growth from 2014 to 2023.
However, it’s essential to note that the use of five-year average data might understate recent trends in median rent increases. The rapid rise observed post-2021 could eventually influence these “steady rent” counties as broader state trends permeate the housing market.
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