May 2025 Market Trends

Welcome to our latest rental market trends update, where we examine the current landscape for investment properties and rentals. As we provide the trends of the present month, we will also share comparisons with the same period in previous years. This market analysis focuses on Single Family Homes, Condos, and Townhomes in the dynamic Charlotte area. Whether you own rental properties or are considering entering the market, our analysis offers valuable insights into year-over-year trends.

In the ever-changing rental market, understanding shifts in demand, pricing, and property availability is crucial for property owners and managers. Join us as we break down the data to offer insights into the rental market’s current state, providing essential context for those managing or investing in rental properties. Whether you’re focused on growing your portfolio, optimizing returns, or staying informed, we hope this overview proves valuable.

Median Days on Market

The Charlotte area is seeing a clear trend of homes staying on the market longer, with median days on market rising from just 4 days in early 2022 to 19 days as of May 2025. While this is still relatively quick by historical standards, the consistent climb suggests that homes aren’t moving as fast as they once did.

For rental property owners, this shift could mean more flexibility in timing when converting or listing a property, and possibly less competition from fast-moving sales. At the same time, a slower sales market may motivate more homeowners to hold off on selling and consider renting instead—adding more options for renters but increasing competition for landlords. Staying aware of these timing trends is critical when planning vacancy coverage, lease start dates, and marketing strategies for your rental properties.

Months Supply of Homes

The months’ supply of homes for sale in the Charlotte area has steadily increased, climbing from less than one month in early 2022 to 2.6 months as of May 2025. While still below the 4–6 month threshold typically associated with a balanced market, this upward trend points to a gradual loosening of the tight inventory conditions that have dominated the past few years.

For rental property owners, this shift has important implications—an increasing supply of homes for sale can create more competition for renters’ attention, especially if more would-be sellers opt to lease their properties instead. On the flip side, it may also offer new buying opportunities for investors as the market normalizes. Keeping an eye on inventory trends helps landlords and property managers anticipate changes in tenant demand, rental pricing pressure, and turnover strategies in a shifting landscape.

Homes for Sale

The number of homes for sale in the Charlotte area has more than doubled over the past three years, rising from just over 3,000 in early 2022 to more than 7,100 by May 2025. This sustained growth in listing inventory points to a shifting market dynamic where buyers have more options—and competition among sellers is on the rise.

For landlords and property managers, this expanding for-sale inventory could signal a more competitive rental landscape ahead. More sellers may choose to rent out properties that sit longer on the market, adding supply to the rental pool. At the same time, the increasing availability of homes for purchase may gradually pull some renters back into buyer mode, especially if pricing stabilizes. These changing conditions make it essential to monitor rental pricing trends, tenant preferences, and lease turnover timelines to remain competitive and maximize occupancy.

Sales Price

Home values in the Charlotte area have steadily risen over the past few years, with the median sales price climbing from $340,000 in early 2022 to $407,000 as of May 2025. While prices surged rapidly through 2022, growth has been more gradual since mid-2023—suggesting a cooling but still appreciating market.

For property owners and rental investors, this stable upward trend in home prices reinforces the long-term value of real estate assets in the Charlotte area. Higher home prices can also support higher rental rates, as affordability challenges may push more potential buyers into renting. If you’re managing a rental property, it’s a great time to reassess your rent pricing strategy to ensure it aligns with the current market and reflects the true value of your property.

Summary

The Charlotte area housing market is showing clear signs of transition, with inventory and market time both trending upward while prices continue a slow but steady climb. As of May 2025, the median sales price reached $407,000, reflecting a modest but consistent increase over the past year. At the same time, available inventory has grown significantly—rising from just over 5,100 homes in June 2023 to more than 7,100 in May 2025. Months supply has also expanded, doubling from 1.3 in late 2022 to 2.6 today, pointing to a less competitive environment for buyers and a move toward market balance. Alongside these shifts, the median days on market has increased from just 4 days in early 2022 to 19 days now, giving both buyers and renters more breathing room to make decisions.

For rental property owners, these trends signal both opportunity and the need for strategy. Slower home sales and higher inventory could result in more homeowners choosing to rent instead of sell, potentially increasing rental supply. However, rising home prices continue to limit affordability for many, helping sustain demand on the rental side. This dynamic reinforces the importance of setting the right rent—one that’s competitive but reflective of increased property value. Staying in tune with market conditions can help minimize vacancies, attract quality tenants, and maximize returns in this evolving landscape.

If you’re a property owner looking to maximize your rental potential, now is an ideal time to explore how professional property management can enhance your investment strategy. Reach out to learn more about how we can help you adapt to these evolving market conditions and make the most of your rental properties.