Real Estate Market In Fayetteville NC

Raleigh, North Carolina
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Real Estate Market In Fayetteville NC

Jared Trindade
Real Estate Agent · Fayetteville, NC · Member since 2022 · 214 posts · 293 votes

Lets talk about some market data for Fayetteville NC.

For the month of November 2022 the median home value was $206k up 24.5% yoy, with an market time of 10 days opposed to 50 days this time last year.  Hot homes typically sell for around 4% over list, and pending within 4 days on average. Price per sq ft is at $126 up 16.7% yoy. WHEW, that by itself screams excellent news. 

Amazon opening up a new warehouse in town, that is seeking to employ 500 full time workers also means an influx of new buyers, not to mention the ever needing cycle of military in Fayetteville who always need places to stay. Almost weekly new soldiers are coming into town. As a point of reference 14.4% of homes are military households. Roughly 55% of the soldiers live intermingled with civilians and not on base. That is a lot of military needing housing, especially since Fort Bragg has roughly 10% of our military assigned to the installation, which is roughly in the neighborhood of 55,000 personnel. 

Let's be very clear for anyone wondering, Fayetteville IS NOT your student market. Look elsewhere in NC for investing in student housing. Fayetteville is explicitly popular in STRs/MTRs/LTRs, and Fix Flips are an extremely effective way of earning a return in Fayetteville. House hacking could be viable depending on the location and requires a lot of research before attempting in Fayetteville.

Cumberland county supports a population of 337.8k people with a population growth of 3.2% for the year of 2022. 

Conclusion:

Fayetteville offers unique opportunity to investors. It is constantly growing, people are coming and going on the daily, and it will always stay steady in that regard due to such a high military presence with Fort Bragg. Rentals are in extremely high demand, and flippers are slinging homes left and right, and getting a fair market value. Keep your eye on Fayetteville, and don't miss opportunity if it knocks.

Looking for feedback and comments, if you have feedback or anything to add please drop it in here!

I live local in Fayetteville, near the mall. If you want to connect and talk further about Fayetteville or market data please connect and reach out.

Here are the websites used for the data if you want to read more/ do independent research. 

https://www.redfin.com/city/59...

https://www.fayobserver.com/st...

https://www.fayobserver.com/st...

https://www.ibisworld.com/unit...

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Tyler Solomon
Lender · Austin, TX · Member since 2022 · 223 posts · 244 votes
3y

Great synopsis Jared! Love boots on the ground analysis like this!

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  • Carli Cummins
    Investor · Fayetteville, NC · Member since 2016 · 28 posts · 8 votes
    3y

    Wow! Great synopsis of the Fayetteville market! My only comment would be the STR market is saturated! Please, if you purchase a home to do STR or MTR, make sure it cash flows as a LTR. Most hosts hire a property manager and with the increase in homes the occupancy has dropped, therefore, the net profit on some homes is the same as being a LTR.

    1Reply
  • Jewel B.Pro Member
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y
    Quote from @Carli Cummins:

    Wow! Great synopsis of the Fayetteville market! My only comment would be the STR market is saturated! Please, if you purchase a home to do STR or MTR, make sure it cash flows as a LTR. Most hosts hire a property manager and with the increase in homes the occupancy has dropped, therefore, the net profit on some homes is the same as being a LTR.


     Thanks for sharing!

    1Reply
  • Jewel B.Pro Member
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y

    Great read!

    Why do you suppose the military members rent rather than purchase with a VA loan?

    Are they mainly housed offbase in SFHs or MFHs?

    1Reply
  • Jared Trindade
    OP
    Real Estate Agent · Fayetteville, NC · Member since 2022 · 214 posts · 293 votes
    3y
    Quote from @Jewel B.:

    Great read!

    Why do you suppose the military members rent rather than purchase with a VA loan?

    Are they mainly housed offbase in SFHs or MFHs?

    Purchasing a home is typically seen as a longer term time investment and a commitment to a location, especially by young 18,19 year old fresh military personnel (most teens in general), and renting is much easier to up and out if you were to get orders and have to leave the Fayetteville area. Keep in mind not all Military are married and/or have dependents to qualify for BAH. Leaving fresh transfers the options of: Purchasing (Riskiest), Rentals (Convenience), and stay in the barracks (Generally sucks). Rentals create an easy; "I have no attachments here really" situation for someone who could be moving in a year or two, or sometimes less. Of course there is a 11.9% Veteran Population in Fayetteville which means there is a lot of VA Loan homes going.

    SFHs are extremely popular in Fayetteville as well as Duplexes, Tri-plexes do not do well in Fayetteville typically, and Quad-plexes are a very viable option. 

    1Reply
  • Jared Trindade
    OP
    Real Estate Agent · Fayetteville, NC · Member since 2022 · 214 posts · 293 votes
    3y
    Quote from @Carli Cummins:

    Wow! Great synopsis of the Fayetteville market! My only comment would be the STR market is saturated! Please, if you purchase a home to do STR or MTR, make sure it cash flows as a LTR. Most hosts hire a property manager and with the increase in homes the occupancy has dropped, therefore, the net profit on some homes is the same as being a LTR.


    Thank you for that feedback, a critical point to make for those looking into the STR Fayetteville market, and a great heads up to be on the lookout for the proper numbers to profit in Fayetteville.

    1Reply
  • Jewel B.Pro Member
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y
    Quote from @Jared Trindade:
    Quote from @Jewel B.:

    Great read!

    Why do you suppose the military members rent rather than purchase with a VA loan?

    Are they mainly housed offbase in SFHs or MFHs?

    Purchasing a home is typically seen as a longer term time investment and a commitment to a location, especially by young 18,19 year old fresh military personnel (most teens in general), and renting is much easier to up and out if you were to get orders and have to leave the Fayetteville area. Keep in mind not all Military are married and/or have dependents to qualify for BAH. Leaving fresh transfers the options of: Purchasing (Riskiest), Rentals (Convenience), and stay in the barracks (Generally sucks). Rentals create an easy; "I have no attachments here really" situation for someone who could be moving in a year or two, or sometimes less. Of course there is a 11.9% Veteran Population in Fayetteville which means there is a lot of VA Loan homes going.

    SFHs are extremely popular in Fayetteville as well as Duplexes, Tri-plexes do not do well in Fayetteville typically, and Quad-plexes are a very viable option. 


     This makes a lot of sense, I didn't consider or know some of those factors.

    Why do triplexes specifically not do as well?

    0Reply
  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    3y

    Fayetteville has been an increasingly popular spot for my attention. I would consider strictly a SFH or duplex for a LTR(unless something crazy happens). I've noticed a lot of heat that way though, it's making me reconsider that avenue. Are you having recent success in that market @ Jared Trindade ?

    1Reply
  • Jared Trindade
    OP
    Real Estate Agent · Fayetteville, NC · Member since 2022 · 214 posts · 293 votes
    3y
    Quote from @V.G Jason:

    Fayetteville has been an increasingly popular spot for my attention. I would consider strictly a SFH or duplex for a LTR(unless something crazy happens). I've noticed a lot of heat that way though, it's making me reconsider that avenue. Are you having recent success in that market @ Jared Trindade ?


     I'm finding that the investors that we are working with are having no current issues picking up SFHs, they are coming and going just as fast here in town. LTRs are are hot right now, they seem to be moving rather quickly depending on the location in town. We recently sold a rather large unit town, took a week to find a buyer. Fayetteville is extremely popular at the moment. People are looking for those cheaper price points, and Fayetteville offers exactly that, with high re-marketability

    1Reply
  • Tyler Solomon
    Lender · Austin, TX · Member since 2022 · 223 posts · 244 votes
    3y

    Great synopsis Jared! Love boots on the ground analysis like this!

    2Reply
  • Jared Trindade
    OP
    Real Estate Agent · Fayetteville, NC · Member since 2022 · 214 posts · 293 votes
    3y
    Quote from @Jewel B.:
    Quote from @Jared Trindade:
    Quote from @Jewel B.:

    Great read!

    Why do you suppose the military members rent rather than purchase with a VA loan?

    Are they mainly housed offbase in SFHs or MFHs?

    Purchasing a home is typically seen as a longer term time investment and a commitment to a location, especially by young 18,19 year old fresh military personnel (most teens in general), and renting is much easier to up and out if you were to get orders and have to leave the Fayetteville area. Keep in mind not all Military are married and/or have dependents to qualify for BAH. Leaving fresh transfers the options of: Purchasing (Riskiest), Rentals (Convenience), and stay in the barracks (Generally sucks). Rentals create an easy; "I have no attachments here really" situation for someone who could be moving in a year or two, or sometimes less. Of course there is a 11.9% Veteran Population in Fayetteville which means there is a lot of VA Loan homes going.

    SFHs are extremely popular in Fayetteville as well as Duplexes, Tri-plexes do not do well in Fayetteville typically, and Quad-plexes are a very viable option. 


     This makes a lot of sense, I didn't consider or know some of those factors.

    Why do triplexes specifically not do as well?

    Triplexes don't do well because everyone hates them, including the people who own them. The ones in town are typically very old and need a lot of work, and typically do not reside in the nicest of neighborhoods in the local area. If you get a chance to just drive through Fayetteville, go through some back neighborhoods near Ramsey St, then drive out to Hay St, take some of the back roads there and cruise through a couple of those neighborhoods, you will be pleasantly shocked. Then shoot down to Raeford rd, take a left on Graham st, run through some of those neighborhoods real fast. Then roll back out to Raeford, hang a right and you'll make a left shortly onto Bunce rd. Get down to Cliffdale and hang a left, take a left at the next light (in front of a taco bell) and roll through those neighborhoods. For added measure, you can shoot further down Cliffdale and hang a right onto Hoke Loop road, you will see the neighborhood you want to check out about a minute up the road. Great little subdivision to roll through. On your way out, go back on Cliffdale towards Skibo, at the intersection with McDonalds on the right, hang a left onto N Reily Rd, cruise down that till you can turn right on to Morganton and head back up to the mall. 

    You hit those locations, and you will see a lot of the different sides of Fayetteville. The good, the bad, the in-between. You will also see very quickly what the relative conditions of vast majority of certain styles of homes are. There is plenty more to see, and other neighborhoods to gain perspective from, like you shoot over to Murchison rd, near the corner of Country Club rd, and check those neighborhoods out, you'll see more different looks at Fayetteville. 

    I know it's a pain to drive all over town, however the data you gain will be invaluable, the visual perspective of Fayetteville says just as much as paper does. I used to sell bathroom/window/door remodels in Fayetteville, and Cutlery, all were in home sales, so I've been inside a ton of the doors here in town. I promise you, 9/10 locations you look at the outside and form an opinion on what the inside probably looks like, you probably aren't too far off. 

    1Reply
  • Jared Trindade
    OP
    Real Estate Agent · Fayetteville, NC · Member since 2022 · 214 posts · 293 votes
    3y
    Quote from @Tyler Solomon:

    Great synopsis Jared! Love boots on the ground analysis like this!


     Thank you! I appreciate the input!

    0Reply
  • Jared Trindade
    OP
    Real Estate Agent · Fayetteville, NC · Member since 2022 · 214 posts · 293 votes
    3y
    Quote from @Jared Trindade:
    Quote from @Jewel B.:
    Quote from @Jared Trindade:
    Quote from @Jewel B.:

    Great read!

    Why do you suppose the military members rent rather than purchase with a VA loan?

    Are they mainly housed offbase in SFHs or MFHs?

    Purchasing a home is typically seen as a longer term time investment and a commitment to a location, especially by young 18,19 year old fresh military personnel (most teens in general), and renting is much easier to up and out if you were to get orders and have to leave the Fayetteville area. Keep in mind not all Military are married and/or have dependents to qualify for BAH. Leaving fresh transfers the options of: Purchasing (Riskiest), Rentals (Convenience), and stay in the barracks (Generally sucks). Rentals create an easy; "I have no attachments here really" situation for someone who could be moving in a year or two, or sometimes less. Of course there is a 11.9% Veteran Population in Fayetteville which means there is a lot of VA Loan homes going.

    SFHs are extremely popular in Fayetteville as well as Duplexes, Tri-plexes do not do well in Fayetteville typically, and Quad-plexes are a very viable option. 


     This makes a lot of sense, I didn't consider or know some of those factors.

    Why do triplexes specifically not do as well?

    Triplexes don't do well because everyone hates them, including the people who own them. The ones in town are typically very old and need a lot of work, and typically do not reside in the nicest of neighborhoods in the local area. If you get a chance to just drive through Fayetteville, go through some back neighborhoods near Ramsey St, then drive out to Hay St, take some of the back roads there and cruise through a couple of those neighborhoods, you will be pleasantly shocked. Then shoot down to Raeford rd, take a left on Graham st, run through some of those neighborhoods real fast. Then roll back out to Raeford, hang a right and you'll make a left shortly onto Bunce rd. Get down to Cliffdale and hang a left, take a left at the next light (in front of a taco bell) and roll through those neighborhoods. For added measure, you can shoot further down Cliffdale and hang a right onto Hoke Loop road, you will see the neighborhood you want to check out about a minute up the road. Great little subdivision to roll through. On your way out, go back on Cliffdale towards Skibo, at the intersection with McDonalds on the right, hang a left onto N Reily Rd, cruise down that till you can turn right on to Morganton and head back up to the mall. 

    You hit those locations, and you will see a lot of the different sides of Fayetteville. The good, the bad, the in-between. You will also see very quickly what the relative conditions of vast majority of certain styles of homes are. There is plenty more to see, and other neighborhoods to gain perspective from, like you shoot over to Murchison rd, near the corner of Country Club rd, and check those neighborhoods out, you'll see more different looks at Fayetteville. 

    I know it's a pain to drive all over town, however the data you gain will be invaluable, the visual perspective of Fayetteville says just as much as paper does. I used to sell bathroom/window/door remodels in Fayetteville, and Cutlery, all were in home sales, so I've been inside a ton of the doors here in town. I promise you, 9/10 locations you look at the outside and form an opinion on what the inside probably looks like, you probably aren't too far off. 


     BTW if you cannot check out areas you want to invest in personally, having someone you trust in the area is critical

    1Reply
  • Jewel B.Pro Member
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y
    Quote from @Jared Trindade:
    Quote from @Jewel B.:
    Quote from @Jared Trindade:
    Quote from @Jewel B.:

    Great read!

    Why do you suppose the military members rent rather than purchase with a VA loan?

    Are they mainly housed offbase in SFHs or MFHs?

    Purchasing a home is typically seen as a longer term time investment and a commitment to a location, especially by young 18,19 year old fresh military personnel (most teens in general), and renting is much easier to up and out if you were to get orders and have to leave the Fayetteville area. Keep in mind not all Military are married and/or have dependents to qualify for BAH. Leaving fresh transfers the options of: Purchasing (Riskiest), Rentals (Convenience), and stay in the barracks (Generally sucks). Rentals create an easy; "I have no attachments here really" situation for someone who could be moving in a year or two, or sometimes less. Of course there is a 11.9% Veteran Population in Fayetteville which means there is a lot of VA Loan homes going.

    SFHs are extremely popular in Fayetteville as well as Duplexes, Tri-plexes do not do well in Fayetteville typically, and Quad-plexes are a very viable option. 


     This makes a lot of sense, I didn't consider or know some of those factors.

    Why do triplexes specifically not do as well?

    Triplexes don't do well because everyone hates them, including the people who own them. The ones in town are typically very old and need a lot of work, and typically do not reside in the nicest of neighborhoods in the local area. If you get a chance to just drive through Fayetteville, go through some back neighborhoods near Ramsey St, then drive out to Hay St, take some of the back roads there and cruise through a couple of those neighborhoods, you will be pleasantly shocked. Then shoot down to Raeford rd, take a left on Graham st, run through some of those neighborhoods real fast. Then roll back out to Raeford, hang a right and you'll make a left shortly onto Bunce rd. Get down to Cliffdale and hang a left, take a left at the next light (in front of a taco bell) and roll through those neighborhoods. For added measure, you can shoot further down Cliffdale and hang a right onto Hoke Loop road, you will see the neighborhood you want to check out about a minute up the road. Great little subdivision to roll through. On your way out, go back on Cliffdale towards Skibo, at the intersection with McDonalds on the right, hang a left onto N Reily Rd, cruise down that till you can turn right on to Morganton and head back up to the mall. 

    You hit those locations, and you will see a lot of the different sides of Fayetteville. The good, the bad, the in-between. You will also see very quickly what the relative conditions of vast majority of certain styles of homes are. There is plenty more to see, and other neighborhoods to gain perspective from, like you shoot over to Murchison rd, near the corner of Country Club rd, and check those neighborhoods out, you'll see more different looks at Fayetteville. 

    I know it's a pain to drive all over town, however the data you gain will be invaluable, the visual perspective of Fayetteville says just as much as paper does. I used to sell bathroom/window/door remodels in Fayetteville, and Cutlery, all were in home sales, so I've been inside a ton of the doors here in town. I promise you, 9/10 locations you look at the outside and form an opinion on what the inside probably looks like, you probably aren't too far off. 


     Wow thanks!

    And I love driving so I don't mind haha. Pop on a BP podcast and hit the road.

    1Reply
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