CHARLOTTE, N.C. — North Carolina ranks second in the nation in a new real estate trend — building new homes just to rent them out. None of these new builds will be for sale.

What You Need To Know

  • North Carolina ranks second in the U.S. for the number of built-to-rent homes

  • Charlotte is just behind Phoenix in developers building houses to rent rather than to sell

  • While some see it as an option for housing, others say it’s taking away from real estate inventory

Charlotte has the largest number of built-to-rent communities in the state and ranks nationally just behind Phoenix, Arizona, Axios has reported. 

Sheryl De Sa and her husband moved to Charlotte from Pennsylvania last fall. They want to buy a house in about a year, but for now, they’re renting a house in Charlotte’s University City. 

“I didn’t want to buy in a rush,” she said. “We want to buy a house, but we just didn’t know where we wanted to buy a house. The last time we did that, we weren’t happy with the house that we bought ”

A lot of people in the Charlotte area are doing the same. The Harrison Trace community where De Sa lives is a neighborhood of houses built specifically as rental properties.

De Sa says for her family, it’s a short-term sacrifice for long-term gain.

“I don’t think you’re saving money. I think it’s just a temporary situation,” she said. “It’s a loss that you make short-term, so you don’t lose long-term.”

Her rent is comparable to what she’d be paying for a mortgage. Harrison Trace has three-, four- and five-bedroom houses with base rent advertised on its website ranging from $1,875 to about $2,400 a month. 

Some, like Charlotte real estate agent Trev Swint, say more houses for rent mean fewer houses for sale.

“We’re taking land away from people who want to own and want to have ownership,” he said. 

The latest data from Canopy Realtor Association shows a 24% increase in inventory at the beginning of this month compared with the same time last year. But with a little more than two months of supply on the market, Canopy is still calling it a seller’s market.

The National Association of Realtors suggests six months of inventory makes for a more balanced market. 

While Swint says the new trend is helpful for families like De Sa’s, he sees the lack of inventory in the real estate market on a regular basis, which is why he’s not a fan.

“From a market standpoint, it doesn’t necessarily help the market or create more inventory for people looking to purchase,” he said.

Over the nearly 20 years Swint has lived in Charlotte, he’s seen rental inventory exponentially increase, while the number of homes for sale lag behind.  

“This used to be retail stores. I used to walk around and actually shop here,” he said pointing to a rental complex behind Boardwark Billy’s. “I used to get my kids sneakers. And now as you see it's developments, it’s real estate, it’s rental properties.”

Swint pointed out renting a house versus buying does save on upfront costs. He added that there are options for buyers who may not have the upfront funds for it. He says downpayment assistance programs are available, especially for first-time buyers. 

On the other hand, some renters say living in a built-to-rent property gives them more space than an apartment without the additional costs of maintenance that come with owning a home.