If you are looking at investing in the Asheville real estate market as a potential investment opportunity, you must read till the end. Asheville, North Carolina sits in the Blue Ridge Mountains in the western part of the state. This area is often overlooked in favor of larger cities like Charlotte or Durham. However, the area has its own attractions whether you’re a tourist or considering Asheville real estate investment. Asheville proper is home to around ninety thousand people.
The Asheville housing market is larger than this, though, when you take the five-county metropolitan area into account. The larger Asheville real estate market is home to over four hundred thousand people. If you are an investor, Asheville real estate has a track record of being one of the best long-term investments. In Asheville, North Carolina, and the surrounding area, there are a variety of investment properties and income-producing types of real estate.
Asheville is a seller’s housing market, which means prices are trending higher and homes are selling faster. The pandemic has supercharged an already hot real estate market. According to Redfin, a nationwide real estate brokerage, Asheville home prices were up 21.3% year over year in April 2022, selling for a median price of $485,000. On average, homes in Asheville sell after 36 days on the market compared to 43 days last year. The average homes sell for about 3% above the list price and hot homes can sell for about 9% above the list price and go pending in around 28 days.
Asheville North Carolina Housing Market Trends 2022
Asheville, North Carolina Metropolitan Statistical Area comprises the four counties of Buncombe, Haywood, Henderson, and Madison. Here is the Asheville Region’s most recent housing market report published by the Canopy Realtor® Association. The following counties are considered a part of the Asheville region’s core service area: Burke, Buncombe, Haywood, Henderson, Jackson, Madison, McDowell, Mitchell, Polk, Rutherford, Swain, Transylvania, and Yancey counties in North Carolina.
Table of Contents
Asheville MSA Housing Demand
- Median Home Price: $375,000 (+17.3% year over year)
- Average Home Price: $449,120 (+14% year over year)
- Median Days On Market: 37 (-37.3% year over year)
- Average List Price: $476,967 (+3.3% year over year)
- Percent of Original List Price Received: 99.4% (+2.4% year over year)
Asheville MSA Sales & Inventory
- Closed Sales: 1,078 (-10.2% year over year)
- Pending Sales: 1,258 (-1.8% year over year)
- New Listings: 1,303 (-3.9% year over year)
- Inventory of Homes for Sale: 1,101 (-43% year over year)
- Months Supply of Inventory: 0.9 (-43.8% year over year)
Asheville City’s Housing Trends
- Median Home Price: $496,000 (+34.8% year over year)
- Average Home Price: $603,282 (+14.3% year over year)
- Median Days On Market: 35 (-36.4% year over year)
- Average List Price: $660,214 (+6.0% year over year)
- Percent of Original List Price Received: 102.1% (+4.5% year over year)
- Closed Sales: 178 (-20.5% year over year)
- Months Supply of Inventory: 0.8 (-46.7% year over year)
Buncombe County Housing Trends
- Median Home Price: $447,500 (+21.3% year over year)
- Average Home Price: $545,688 (+8.3% year over year)
- Median Days On Market: 34 (-32% year over year)
- Average List Price: $588,082 (+5.1% year over year)
- Percent of Original List Price Received: 101% (+3.3% year over year)
- Closed Sales: 390 (-7.1% year over year)
- Months Supply of Inventory: 0.8 (-42.9% year over year)
Asheville Real Estate Market Forecast 2022-2023
The typical home value in the Asheville metro is $392,744 (Zillow Home Value Index). Asheville metro home values have gone up 23% over the past year and 110% over the past decade. Similarly, the typical value of homes in the city of Asheville is $421,664, up 20.2% over the past year. The pandemic has fueled the demand in this region for the past two years. According to Zillow’s forecast (ZHVI), Asheville metro home values will rise by 13.7% by the end of April 2023.
Asheville has experienced some of the highest home appreciation rates in the nation over the past decade. Over the past decade, Asheville real estate has appreciated 104.30 percent, which equates to an annual home appreciation rate of 7.41 percent, placing the city in the top 20 percent nationally for real estate appreciation, according to NeighborhoodScout’s data.
As of the most recent twelve months, Asheville’s appreciation rates continue to be among the highest in the United States, at 21.69 percent, which is higher than 78.55 percent of the nation’s cities and towns. In Asheville, short-term real estate investors have found success over the past twelve months. In the most recent quarter, Asheville’s appreciation rates were 8.23 percent, which equates to an annual appreciation rate of 37.19 percent.
Here is the Asheville real estate price appreciation graph by Zillow since the last decade.
Some of the best neighborhoods in Asheville, North Carolina are Biltmore Forest, Oakley, and Kenilworth. Grove Park- Sunset has a median listing price of $1.5M, making it the most expensive neighborhood. Jackson Park is the most affordable neighborhood, with a median listing price of $325K.
Here are the 10 best neighborhoods in Asheville to invest in real estate because they have the highest appreciation rates since 2000 (List by Neigborhoodscout.com).
- Pisgah View
- Burton Street
- Wilshire Park
- East End valley Street
- Hillcrest
- Downtown
- Chestnut Hills / Five Points
- Montford
- Wecan
- Jackson Park / University of North Carolina at Asheville
If you are looking to buy real estate in Asheville, you should know the best places to invest in. The three most important factors when buying real estate anywhere are location, location, and location. The location creates desirability. Desirability brings demand. Demand would raise the price of your Asheville real estate and you should be able to flip it for a lump sum profit.
When looking to invest in Asheville real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Asheville investment property should be low. The neighborhoods in Asheville must be safe to live in and should have a low crime rate. The neighborhoods should be close to basic amenities, public services, and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.
Asheville Real Estate Investment Overview
Is it worth buying a house in Asheville, NC? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Asheville is a good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Asheville housing market forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Asheville we have collected ten evidence-based positive things for those who are keen to invest in the Asheville real estate in 2022 and beyond.
Investing in Asheville real estate will fetch you good returns in the long term as the home prices in Asheville have been trending up year over year. Let’s take a look at the number of positive things going on in the Asheville real estate market which can help investors who are keen to buy an investment property in this city.
The Large and Diverse Student Market
Any college creates a large population of permanent renters. The Asheville housing market beats many college towns because it is home to several different universities. We’ll ignore the technical community college in Asheville and look at schools like Black Mountain College, Shaw University, Brevard College, Lenoir-Rhyne University, and Mars Hill University. Each has several hundred to several thousand students.
You could own multiple Asheville real estate investment properties, each near a different school, and thus have a diversified real estate portfolio for relatively little money. Yet the area’s economy is so diverse you could rent the same properties out to students if any of these small liberal arts colleges fold. Or you could simply rent out properties in the Asheville real estate market to UNC Asheville students.
Asheville and the Asheville metropolitan area have higher rents than the average for North Carolina but are generally close to the national average. Rents are increasing in the Asheville market, but prices fluctuate and options exist at both the low and high ends of the rent spectrum.
Studio apartments are the most affordable option, averaging $866 in Asheville and $794 in the Asheville metropolitan area. In this market, median rents are $848 based on 29 units available, down 7% over one year. One-bedroom apartments, a popular option, are slightly more, averaging $870 in the city and $799 in the metro area. In this market, median rents are $1,071 based on 204 units available, up 6% over one year.
CURRENT RENTAL TRENDS: As of May 31, 2022, the average rent for a 1-bedroom apartment in Asheville, NC is currently $1,246. This is a 14% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Asheville increased by 11% to $1,123. The average rent for a 1-bedroom apartment decreased by -17% to $1,246, and the average rent for a 2-bedroom apartment decreased by -14% to $1,455.
- The average rent for a 2-bedroom apartment in Asheville, NC is currently $1,455, an 11% increase compared to the previous year.
- The average rent for a 3-bedroom apartment in Asheville, NC is currently $1,698, a 3% increase compared to the previous year.
- The average rent for a 4-bedroom apartment in Asheville, NC is currently $375, an 84% decrease compared to the previous year.
The Demand for Affordable Homes is High
Given the amazing views, proximity to nature and examples like the Vanderbilt property in the area, the Asheville real estate market has seen more luxury homes built than affordable ones. Yet it is the smaller homes that appeal to couples looking for starter homes and retirees who don’t need something big. Depending on the area in the Asheville real estate market, it can be hard to find properties below 400,000. This is compounded by neighborhoods that say homes must be at least 1000 or 1200 square feet in size, preventing much cheaper homes from being built. This creates strong demand for affordable single-family rentals in the Asheville housing market.
The Literal Constraints of Geography
The same geography that attracts many tourists to the city limits the growth of the city. Asheville has east-west access via I-40 while Highway 26 connects it to other towns north and south. However, new construction going up mountainsides is expensive and risky. They simply cannot expand into Pisgah National Forest or the massive Nantahala National Forest. This limits the potential growth of the city.
Asheville is a charming city and metropolitan area that offers something for everyone, including scenic mountains, live music, locally produced food and drink, and a thriving arts scene. With approximately 89,000 residents and a metropolitan population of approximately 425,000, Asheville is the largest city in western North Carolina. Asheville can be found nestled between the Blue Ridge and the Great Smoky Mountains. Its location is one of the many factors that contributed to its inclusion on our list of the best places to live in North Carolina.
Walkable communities are all the rage. It is so important to many young couples and downsizing couples that new walkable planned neighborhoods are being built around the U.S. The Asheville housing market is unusual for already having an established, walkable downtown. The downtown is large enough to be a community in its own right, but it isn’t so large that the Asheville real estate market is depressed by blighted areas.
The Diversified Job Market
If Asheville’s lifeblood was tourism, we couldn’t recommend Asheville real estate investment because it would be too risky. However, the Asheville real estate market is buoyed by a diversified, solid job market. The city is the regional services hub. This means that the city, the state, and several government agencies are large local employers. So, too, are the local VA medical center, school system, and health system. Furniture makers, equipment manufacturers, and research facilities dot the area. This creates a large, healthy job market that can weather almost any storm.
The Potential for Short Term Rentals
The lush forests around Asheville attract tourists for hiking, rafting, and other outdoor activities. The city has limited short-term rentals, but that doesn’t mean this isn’t an option if you own Asheville real estate investment properties. For example, parts of the Asheville real estate market are zoned as “resorts”. You can rent these properties out on short-term rental sites to your heart’s delight.
Properties that already had short-term vacation rental permits are grandfathered into the existing rules, though you should verify the permit could transfer to you before buying the Asheville real estate investment property. Towns outside of Asheville proper have their own rules, too, and are more relaxed in this regard.
The Landlord-Friendly Environment
North Carolina in general is landlord friendly. The state is also far more landlord friendly than surrounding states like South Carolina, Virginia, and Tennessee. You can evict people for non-payment of rent, breaching the lease, criminal activity, and remaining on the property after termination of the lease. Major cities in the state don’t tack on additional tenant protections, either. We just can’t give North Carolina extra points on being tax-friendly for property owners; they’re literally average when it comes to income and property taxes.
Summary
Maybe you have done a bit of real estate investing in Asheville, NC but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Asheville real estate investment opportunity would be a key to your success. in If you invest wisely in Asheville real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate. The Asheville, North Carolina area is a stable, steadily growing housing market with several profitable rental markets investors would appreciate. It counterbalances this with a healthy job market and demographic momentum that will keep it going strong for years to come.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Asheville, NC is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Asheville real estate. Purchasing an investment property requires a lot of study, planning, and budgeting. Not all deals are solid investments. We always recommend doing your own research and taking the help of a real estate investment counselor.
Let us know which real estate markets you consider best for real estate investing! If you need expert investment advice, you may fill up the form given here. One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
References
Housing Market Data & Statistics
https://www.zillow.com/asheville-nc/home-values/
https://www.zillow.com/asheville-nc-28802/home-values/
https://www.carolinahome.com/market-data/monthly-reports
https://www.redfin.com/city/555/NC/Asheville/housing-market
https://www.realtor.com/realestateandhomes-search/Asheville_NC/overview
https://www.neighborhoodscout.com/nc/asheville/real-estate/
Job & Student market
https://en.wikipedia.org/wiki/Asheville,_North_Carolina
Walkable
https://expertvagabond.com/asheville-things-to-do
Landlord friendly
https://wallethub.com/edu/best-worst-states-to-be-a-taxpayer/2416
https://www.avail.co/education/laws/north-carolina-landlord-tenant-law
Short term rentals
https://www.usatoday.com/story/tech/news/2018/06/02/one-airbnb-hosts-fight-asheville-n-c-nearing-1-m-fines/657653002
https://www.citizen-times.com/story/news/local/2018/01/18/guide-ashevilles-short-term-vacation-rental-rules-can-you-rent-your-space/1035531001
