Real Estate Market in Burlington NC

[Jared Trindade]

Population. Incoming. 

Let's get right into the meat here, Burlington NC is growing at a phenomenal rate. Currently at 1.26% annual growth with a population of just under 59k. If you were to look at a population graph, it's the exact definition of what you love to see in an area. Consistently hitting amazing growth numbers since the 1940s, and no sign of slowing down. The vast majority of influx is coming from Raleigh NC, and outflux heading to Myrtle Beach SC. 75% of online searches for home from Burlington locals were looking to stay inside Burlington. There doesn't seem to be much making people wanna leave. 

Sporting a poverty rate of around 15% (which is down in the last few years from ~23%) and a crime index of 4 out of 100 (100 being the safest). Violent crimes, and property crimes trend higher on average in Burlington than the rest of the state, but when compared to other cities, not the whole state, it's very similar. So nothing crazy in that department, a 15% poverty rate could give an investor an opportunity with affordable housing. 

Median sales price is in the $240k area, with average homes for 1% under ask in 18 days and hot homes moving 2% over ask in 5 days. That's a solid turn around, it clearly is indicating buyers in the area, as well as quality of product making the extra bucks. It is a very competitive market right now, and is a flipper hotbed in NC. The cheap prices, rapid growth, proximity to large cities, and lying right of I-40 gives it the perfect position to be the city outside the cities. Bringing up the position for 17th largest city in NC, Burlington should be on any investors radar. 

65% of homes are owner occupied, with roughly 70% of the market being SFH, and a median age of 40, you can see why flippers are having a field day in Burlington right now.

Burlington does have a bit of a higher cost of living in NC ranked 11/50 most expensive, and in the top 8% most expensive cities in the world. Which means market rents are higher than in some other areas. According to the Cost Of Living Index a 1 bed apartment in city center should rent for a little over $1200 a month. Side note, Burlington ranked in the top 39% best cities to live in the world. Not bad. 

Burlington being a smaller area that is still growing -rapidly- is really the main drawback. There is an reach chance to see Burlington reach the 70k+ population mark in the near future, meaning housing demand will continue to rise, along with the prices, and likely a need for new builds. This will attract more businesses, and we will see the local economy increase as a result. I think there may even be a solid buy & hold strategy that could pan out in the long term. 

As with every investment do your research, run your comps, know your market, have a good team, and run the numbers. Burlington is one of the places worth looking into doing exactly that.

If you have any feedback, questions, comments, concerns or anything valuable to add please do! Always looking to connect with more people as well, so please reach out!

For extra reading and sources:

https://www.redfin.com/city/23...

https://www.realtor.com/reales...

https://worldpopulationreview....

https://www.census.gov/quickfa...

https://censusreporter.org/pro...

https://livingcost.org/cost/un... 

https://www.neighborhoodscout.... 

[Pat Lulewicz]

Great consolidation of information of a market that is underappreciated by  most investors. I know a lot of retail buyers who moved from Raleigh and Durham to Burlington and surrounding cities lately because of the price point and ease of commute to both metros - Greensboro and Durham/Raleigh. Commercial development is up in and around that area, including Elon, Graham, and Mebane. In aggregate, those must make up about 100k in population, wouldn't you say? Elon U packs a punch locally. A lot of infrastructure improvements on and around I-40 which has made traffic at gas stations near the on/off ramps horrendous! 

Curious @Jared Trindade, to my point about commuting simplicity along I-40 to both metros, does any of your research or sources speak to employment - large employers, industries, etc? I'm curious how many people are: A) flat-out retired so doesn't matter, B)  work locally in, I'm assuming, manufacturing, blue-collar jobs, and other local small business, or C) commuting to and from work in either metro but living there for home price?

Love the good work on our wonderful markets.