U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

Spotlight on the Housing Market 

in the Charlotte-Concord-Gastonia, 

NC-SC MSA

The Obama Administration’s Efforts To Stabilize the Housing Market and Help American Homeowners | July 2015

Spotlight on the Housing Market in the Charlotte-Concord-Gastonia, NC-SC MSA | Page 1

The Charlotte-Concord-Gastonia, NC-SC Metropolitan Statistical Area (Charlotte MSA) includes 7 counties located in south-central North 

Carolina and 3 counties in north-central South Carolina. The initial downturn from the foreclosure crisis in the Charlotte MSA was less severe 

than in some areas of the country but the subsequent recession had a larger impact than for the nation overall. Home prices appreciated 

60 percentage points less than the national rate during the housing bubble, and the ensuing decline in prices was also less steep—16 

percent compared with a national decline of 32 percent. Lower property values and the extent of underwater mortgages in Charlotte were 

driven in part by investor speculation, unsustainable mortgage lending, and excess housing construction going into the crisis, but the rise in 

unemployment and underemployment during the recession primarily fueled the rise in defaults and the decline in property values. The share 

of mortgages at risk of foreclosure (those 90 or more days delinquent or in the foreclosure process) peaked the same year as the nation—but 

at a somewhat lower rate. Nearly five years of fairly rapid job growth, state legislation that curtailed foreclosure actions, and the local use of 

the Administration’s mortgage assistance programs has reduced the share of distressed mortgages in Charlotte. The Administration’s broad 

approach to stabilizing the housing market has been a real help to homeowners in Charlotte and the surrounding area. This addendum 

to the Obama Administration’s Housing Scorecard provides a summary of local economic trends and conditions and the impact of the 

Administration’s efforts to stabilize the housing market and help local homeowners.

Population Growth, Employment, 

and Housing Market:

With more than 2.2 million people according to the most 

recent Census, the Charlotte MSA is the 22nd largest in 

the nation. From 2000 to 2010, Charlotte’s population 

increased by an average of 49,950 people, or 2.9 percent, 

a year. An average of approximately 35,300 people per 

year moved to the Charlotte MSA during the last decade, 

accounting for 70 percent of the population growth during 

this period. Natural population growth (births minus 

deaths) accounted for the remaining 30 percent of the net 

population increase. The highest influx of people moving 

to the area—an average of 51,950 annually—occurred 

between the years 2005 and 2008. 

During the decade spanned by the Census, new housing 

construction grew faster than household growth in Charlotte. Net 

annual housing unit growth of 3.5 percent in the Charlotte metropolitan area 

during the last decade was greater than the corresponding population and 

household growth rates of 2.9 and 3.1 percent, respectively. The rate of increase 

in vacant units in the Charlotte metro area during the 2000s was considerably 

higher than the national rate, with vacant units increasing at an average annual 

rate of 8.5 percent compared with 4.4 percent nationally, according to the 

Census Bureau. Investor speculation had some effect on overbuilding in the 

years leading up to the housing crisis, with the increase in the share of investor 

purchases similar to the national upturn. Specifically, from 2000 to 2005, 

investor home sales rose from 6.7 to 13.4 percent of total sales in the Charlotte 

metro area, while the corresponding increase for the nation was from 8.2 to 

14.8 percent. Subprime lending also had an impact on the overbuilding. A 

study by the National Bureau of Economic Research indicates that the Charlotte 

MSA ranked 68th out of the top 107 metropolitan areas with the highest share 

of subprime originations during 2005, with subprime originations as a share of 

new mortgages at 17 percent in Charlotte. A conservative estimate based on 

HMDA (Home Mortgage Disclosure Act) data indicates that high-cost (proxy for 

subprime) originations tripled nationally between 1998 and 2005, while a study 

by the Center for Responsible Lending estimates that approximately 90 percent 

of subprime mortgages during that period faced increases in monthly payments 

of 30 to 50 percent within a few years, causing borrowers with subprime loans 

to typically default at more than 7 times the rate of other mortgages.

Charlotte MSA Housing Unit Growth Outpaced Population and 

Household Growth During the Past Decade

Date of Census 4/1/2000 4/1/2010

Charlotte MSA Population 1,717,372 2,217,012 

 Annual Growth Rate — 2.9%

Charlotte MSA Households 510,516 671,229 

 Annual Growth Rate — 3.1%

Charlotte MSA Housing Units 546,447 737,775 

 Annual Growth Rate — 3.5%

Source: Census Bureau (2000 and 2010 Decennial)
The Obama Administration’s Efforts To Stabilize the Housing Market and Help American Homeowners | July 2015 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

Spotlight on the Housing Market in the Charlotte-Concord-Gastonia, NC-SC MSA | Page 2

U.S Department of Housing and Urban Development

Charlotte’s economy has improved. The local 

economy was growing moderately before it began to 

decline in 2008. From the second quarter of 2003 through 

the second quarter of 2008, jobs increased at an average 

annual rate of 2.5 percent, compared with a national 

increase of 1.1 percent during this period. The impact of 

the Great Recession was more severe for the Charlotte 

metropolitan area than it was for the nation. Jobs in the MSA 

declined at an annual rate of 5.0 percent from the third 

quarter of 2008 through the first quarter of 2010, compared 

with a national decline of 3.3 percent. The recovery from 

the recession has been stronger for Charlotte than nationally, 

however, with jobs increasing at an annual rate of 3.1 percent 

from the second quarter of 2010 through the first quarter of 

2015, compared with a 1.7-percent increase nationally.

The Charlotte MSA is headquarters to the Wachovia and Bank 

of America Corporations and the second largest banking 

center in the nation, with area banks controlling more than 

$2.2 trillion in assets. Despite the presence of large banking 

institutions, the financial activities sector only accounts for 

8 percent of total nonfarm payrolls, a share that remained 

consistent from the first quarter of 2003 through the first quarter 

of 2015. During the recent recession, a period when every 

other private sector in the MSA lost jobs, the education and 

health services sector expanded at an average annual rate of 

2.2 percent and the government sector by 3.5 percent. Job 

losses were most severe during this period in the construction 

sector, where jobs declined at an annual rate of 18.7 percent 

and accounted for 24 percent of the loss in employment. 

Job losses were also fairly substantial for the manufacturing 

sector (-10.9 percent), other services sector (-8.5 percent), and 

wholesale trade (-7.1 percent). The recovery from the recession 

has been led by the professional and business services sector 

(5.2 percent), leisure and hospitality (4.7 percent), and other 

services (4.3 percent). The unemployment rate for the Charlotte 

MSA peaked at 12.6 percent in December 2009 and, as 

of June 2015, has fallen to 5.5 percent. In comparison, the 

unemployment rate for the nation peaked in October 2009 

at 10.0 percent and fell to 5.3 percent by June 2015.

Home sales in Charlotte have improved. After 

peaking at 55,800 units sold in 2006, purchases of 

previously owned (existing) homes in the Charlotte MSA 

declined between 2007 and 2011 by an average annual 

rate of 12 percent. Existing home sales have risen since 

2011 by an annual rate of 23 percent, although the pace 

slowed to 6 percent growth in 2014. By comparison, existing 

home sales in the nation peaked in 2005 and declined by 

an annual rate of 14 percent between 2006 and 2008. 

Existing home sales began to rise again nationally in 2009, 

increasing at an annual rate of almost 5 percent from 2009 to 2013, but slowed 

in 2014, declining by 3 percent. Purchases of new home sales peaked in 2006 

at 23,900 units in the Charlotte MSA before falling from 2007 through 2011 at 

an annual rate of 15 percent. New home sales reversed that trend, increasing 

at an annual rate of 17 percent (albeit on a low base) from 2012 to 2014. 

Nationally, new home sales peaked in 2005 before declining by an annual rate 

of 13 percent from 2006 through 2011; sales have increased since at an annual 

rate of 14 percent (also on a low base) from 2012 through 2014. 
The Obama Administration’s Efforts To Stabilize the Housing Market and Help American Homeowners | July 2015 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

Spotlight on the Housing Market in the Charlotte-Concord-Gastonia, NC-SC MSA | Page 3

U.S Department of Housing and Urban Development

Charlotte experienced a relatively small house 

price bubble during the housing crisis. The CoreLogic 

repeat-sales house price index (HPI) shows that home prices 

in the Charlotte MSA rose nearly 60 percentage points less 

than for the rest of the nation during the housing bubble and 

had a less pronounced decline of 16 percent from their peak 

in July 2007 to their low in February 2011. The national 

peak-to-low decline was 32 percent (from April 2006 to 

March 2011). Investor speculation had some impact on 

the rise in home prices in the Charlotte MSA, with sales to 

investors averaging 12 percent during the bubble, but lower 

than the 13 percent share nationally. As described earlier, 

subprime lending was also a factor in fueling home prices 

in Charlotte. Since reaching their low point, home prices 

in the Charlotte metropolitan area have risen 29 percent, 

compared to the 35 percent low-to-current increase for the 

nation, and have surpassed their previous peak in mid-2007.

The apartment vacancy rate in Charlotte has 

remained above the national rate during the 

past year. According to MPF Research, the Charlotte 

MSA apartment vacancy rate was 5.4 percent in the first 

quarter of 2015, up slightly from 5.3 percent a year earlier, 

representing generally balanced market conditions. The 

slight uptick in the vacancy rate occurred with the completion 

of a large number of new apartment projects during the past 

year, but strong demand in the city of Charlotte helped offset 

the elevated supply levels. The national apartment vacancy 

rate was 4.5 percent during the same period, down from 

5.0 percent a year earlier. In the first quarter of 2015, the 

average apartment rent in the Charlotte metro increased 

5.5 percent from a year earlier to $917, compared with 

a nationwide increase of 5.0 percent to $1,186. Overall 

rental market conditions in Charlotte remain slightly softer 

than the apartment market due to a high number of vacant 

single-family rental properties. According to the CPS/

HVS (Current Population Survey/Housing Vacancy Survey) 

conducted by the Census Bureau, the overall rental vacancy 

rate in the first quarter for the Charlotte MSA was 7.4 

percent compared to a national rate of 7.1 percent. The 

2013 ACS (American Community Survey) indicates that 

single-family homes accounted for 41 percent of all rental 

units in the Charlotte metropolitan area, while representing 

35 percent of all rental units in the nation. 

Trends in Mortgage Delinquencies 

and Foreclosures: 

The share of distressed mortgages in Charlotte 

has declined and is below the national level. As 

of May 2015, the Charlotte MSA placed 216th out of 

381 metropolitan areas ranked by share of mortgages at risk of foreclosure 

(90 or more days delinquent or in the foreclosure process) according to Black 

Knight Financial Services, Inc. From the end of 2001 through the middle of 

2007, the share of distressed mortgages in Charlotte was consistently above 

the national rate but rose less steeply during the foreclosure crisis, according 

to CoreLogic data. In 2007 and 2008, when the foreclosure crisis began and 

single-family foreclosures were largely driven by unaffordable non-traditional 

loan products, the increase in mortgages at risk of foreclosure in the Charlotte 

MSA began to rise, but at less than half the pace nationally. Specifically, from 

the beginning of 2007 to the end of 2008, the share of distressed mortgages in 

Charlotte increased 1.3 percentage points (from 2.1 to 3.4 percent), compared 

with a national increase of 2.9 percentage points (from 1.6 to 4.5 percent). 

Beginning in 2009, foreclosures were increasingly driven by loss of income, 

unemployment, and strategic defaults as the economy worsened, according to 

research by the Federal Reserve Bank of Chicago. A sharp spike upward in the 

share of distressed mortgages occurred in 2009 for both the Charlotte MSA and 

the nation. By early 2010, mortgages at risk of foreclosure reached a peak of 

8.0 percent nationally and 6.9 percent in Charlotte. Although initially declining 

from this peak, the share of distressed mortgages in Charlotte began to increase 

again in 2011 and nearly reached the national rate. Passage of legislation in 

2010 that allowed for foreclosure mediation in an effort to prevent foreclosures 

likely contributed to this increase of mortgages in the foreclosure pipeline. The 

current decline in the share of mortgages at risk of foreclosure in Charlotte is 
The Obama Administration’s Efforts To Stabilize the Housing Market and Help American Homeowners | July 2015 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

Spotlight on the Housing Market in the Charlotte-Concord-Gastonia, NC-SC MSA | Page 4

U.S Department of Housing and Urban Development

again similar to the national trend. In Charlotte, the share 

of distressed mortgages is now at 2.8 percent compared 

to 3.3 percent nationally. Over the last year, the number of 

distressed mortgages decreased by 24 percent—from 9,975 

to 7,600—compared with a national decline of 27 percent 

over the same period. A partial explanation for a lower 

share of distressed mortgages in the Charlotte MSA relative 

to the nation is a significantly lower foreclosure processing 

timeline. As of the first quarter of 2015, the average time 

to complete a foreclosure in the nation was 620 days 

compared with an average of 243 days for North Carolina 

and 542 days for South Carolina.

RealtyTrac data show the rate of foreclosure 

completions in Charlotte has been slightly above 

the national rate since April 2009. From April 2009 

through May 2015, the number of foreclosure completions 

as a percentage of all housing units was 3.4 percent in 

Charlotte, slightly higher than the 3.2-percent rate for 

the nation. Foreclosure completions have generally been 

trending downward in the Charlotte MSA since 2013. 

During the first quarter of 2015, the Charlotte metropolitan 

area had a foreclosure completion rate of 0.6 percent, the 

same as the national average during that period. Foreclosure 

completions were 17 percent below their rate a year earlier 

in Charlotte, although the rate was higher for both Charlotte 

and the nation than in the fourth quarter of 2014. With 

rising home prices and low inventories of homes for sale, 

lenders are resolving defaults more quickly, which has led to 

an increase in foreclosure filings.

The efforts of numerous state and local entities 

and financial institutions in partnership with the 

federal government have helped contain the 

rate of foreclosures. In August 2007, North Carolina 

Governor Michael Easley signed Senate Bill 1264/House 

Bill 1374, which provides protections for homeowners in 

the foreclosure process, including protection from loan 

servicing abuses, and more rights to information during the 

foreclosure process. The law also facilitates legal action 

by the borrower if the lender fails to comply with the law. 

The Emergency Program to Reduce Home Foreclosures Act 

(Senate Bill 2115/House Bill 2742), which was signed in 

2008 and extended in 2010, requires lenders to give prior notice of foreclosure 

to borrowers with subprime loans in an effort to reach an agreement that avoids 

foreclosure; the law also provides funds to nonprofit counseling agencies to 

assist borrowers. Through these and the Administration’s efforts, conditions in 

the Charlotte MSA have improved. As of the first quarter of 2015, 6.3 percent 

of mortgages in the Charlotte MSA remain underwater, down from 8.6 percent 

a year earlier, according to CoreLogic. This compares to a 10.2 percent share 

of underwater borrowers (those who owe more on their mortgage than the value 

of their home) for the first quarter at the national level.

The Administration’s Efforts To Stabilize the 

Charlotte MSA Housing Market:

The Administration’s mortgage and neighborhood assistance programs—the 

Home Affordable Modification Program (HAMP, which is part of the broader 

Making Home Affordable program), the Federal Housing Administration (FHA) 

mortgage assistance programs, the Neighborhood Stabilization Program (NSP), 

and the Hardest Hit Fund (HHF) program—combined with assistance from 

the HOPE Now Alliance of mortgage servicers and the National Mortgage 

Servicing Settlement have helped stabilize the Charlotte MSA housing market.

From the launch of the Administration’s assistance programs in April 2009 

through the end of June 2015, more than 81,000 homeowners have received 

mortgage assistance in the Charlotte metropolitan area. Nearly 45,800 

interventions were completed through the HAMP and FHA loss mitigation and 

early delinquency intervention programs. An estimated additional 35,200 

proprietary mortgage modifications have been made through HOPE Now 

Alliance servicers. While some homeowners may have received help from more 

than one program, the number of times assistance has been provided in the 

Charlotte metropolitan area is two and one-half times the number of foreclosures 

completed during this period (32,300). 

Under the landmark National Mortgage Servicing Settlement signed in February 

2012, more than 9,843 North Carolina homeowners and more than 6,485 

South Carolina homeowners have benefitted from over $400 million and 

over $300 million, respectively, in refinancing, short sales and completed or 

trial loan modifications, including principal reduction on first and second lien 

mortgages provided as of June 30, 2013. Nationwide, the settlement has 

Foreclosure Completion Rates in the Charlotte MSA

Area

First Quarter 2015 Since April 1, 2009

Foreclosure 

Completions

Foreclosure 

Rate

Foreclosure

Completions

Foreclosure 

Rate

Charlotte MSA 570 0.06% 31,990 3.4%

Nation 82,100 0.06% 4,194,700 3.2%

Notes: Foreclosure rates as percent of all housing units. Data through May 2015 

for foreclosures since April 2009.

Sources: Realty Trac and Census Bureau.
The Obama Administration’s Efforts To Stabilize the Housing Market and Help American Homeowners | July 2015 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

Spotlight on the Housing Market in the Charlotte-Concord-Gastonia, NC-SC MSA | Page 5

U.S Department of Housing and Urban Development

provided more than $50 billion in consumer relief benefits 

to more than 631,000 families. That is in addition to the 

$2.5 billion in payments to participating states and $1.5 

billion in direct payments to borrowers who were improperly 

foreclosed upon between 2008 and 2011.

Given over three rounds, the Neighborhood Stabilization 

Program has invested $7 billion nationwide to help 

localities work with non-profits and community development 

corporations to turn tens of thousands of abandoned 

and foreclosed homes that lower property values into 

homeownership opportunities and the affordable rental 

housing that communities need. 

NSP1 funds were granted to all states and selected local 

governments on a formula basis under Division B, Title III of 

the Housing and Economic Recovery Act (HERA) of 2008; 

NSP2 funds authorized under the American Recovery and 

Reinvestment Act (the Recovery Act) of 2009 provided grants 

to states, local governments, nonprofits and a consortium of 

nonprofit entities on a competitive basis; and NSP3 funds 

authorized under the Dodd-Frank Wall Street Reform and 

Consumer Protection Act of 2010 provided neighborhood 

stabilization grants to all states and select governments on a 

formula basis.

Overall, a total of $5.4 million in NSP funds has been 

awarded directly to the City of Charlotte, NC. In 

addition, NSP funding in the amounts of $57.3 million 

and $50.3 million was awarded to the States of North 

Carolina and South Carolina, respectively. Of the NSP 

grant to North Carolina, $2.6 million was sub-allocated to 

the City of Charlotte; except for this one grant, data are not 

yet available on the amounts of NSP grants to North and 

South Carolina that were reallocated to the Charlotte MSA. 

Approximately 458 households in the MSA have benefited 

from the NSP funding to the City of Charlotte described 

above. Data on households benefiting from NSP funds 

reallocated to the entire Charlotte metro area from North 

and South Carolina are currently unavailable.

As part of the State of North Carolina’s housing recovery 

efforts, the North Carolina Foreclosure Prevention 

Fund program was launched to help North Carolina 

homeowners who are at high risk of default or foreclosure. 

The North Carolina Foreclosure Prevention Fund is financed by $483 million from 

the Administration’s Hardest Hit Fund and administered by the North Carolina 

Housing Finance Agency. Assistance is provided through the following programs:

• Mortgage Payment Program—Provides monthly mortgage payment 

and reinstatement assistance on behalf of unemployed and other eligible 

homeowners who are unable to afford their monthly mortgage payments. 

Homeowners who are in job training/education programs may receive an 

extended term of assistance. Standalone reinstatement assistance is available 

for eligible homeowners who have regained employment and can afford their 

monthly payment provided they can bring their mortgage current. 

• Second Mortgage Refinance Program—Provides assistance for the 

extinguishment of second mortgages to reduce the homeowner’s monthly 

mortgage payment and to facilitate a first mortgage refinance or HAMP 

modification.

• Modification Enabling Pilot Program—Provides funds to facilitate 

modifications for eligible mortgages purchased in a distressed asset sale. 

Principal reduction may be matched with non-program funds to facilitate a 

mortgage modification.

As of March 31, 2015, the most recent quarter for which data are available, 

the NC Foreclosure Prevention Fund had disbursed approximately $306 million 

on behalf of an estimated 19,060 North Carolina homeowners. North Carolina 

homeowners who believe they may be eligible for these programs should visit 

www.ncforeclosurehelp.org.

As part of the State of South Carolina’s housing recovery efforts, the South 

Carolina Homeownership and Employment Lending Program (SC 

HELP) was launched in January 2011 to help South Carolina homeowners 

who are at high risk of default or foreclosure. SC HELP is funded by $295 

million from the Administration’s Hardest Hit Fund and administered by the 

South Carolina State Housing Finance and Development Authority. Assistance is 

provided through the following programs:

• Monthly Payment Assistance Program—Provides monthly mortgage 

payment assistance for unemployed and underemployed homeowners.

Charlotte MSA Housing Units to Date Benefiting 

From NSP by Type of Activity 

 Construction or Rehabilitation 442

 Homeownership Assistance to Low- and Moderate-Income 16

Total Housing Units 458

Notes: These housing units are the result of NSP grants (either direct or indirect) to the 

City of Charlotte, NC. Data on units resulting from NC and SC state subgrants to the 

Charlotte MSA (other than to the City of Charlotte) are not available.
The Obama Administration’s Efforts To Stabilize the Housing Market and Help American Homeowners | July 2015 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

Spotlight on the Housing Market in the Charlotte-Concord-Gastonia, NC-SC MSA | Page 6

U.S Department of Housing and Urban Development

• Direct Loan Assistance Program—Provides 

reinstatement assistance, principal reduction, or 

forbearance reduction/elimination for homeowners who 

experienced a financial hardship but have regained the 

ability to pay their mortgage.

• Modification Assistance Program—Provides 

principal reduction with a loan recast or modification to 

achieve long-term affordability.

• Property Disposition Assistance Program—Provides assistance to offset 

relocation expenses incurred in conjunction with a short sale or deed-in-lieu.

• Neighborhood Initiative Program—Prevents foreclosures through the 

demolition, greening, and ongoing maintenance of vacant and abandoned 

blighted residential properties.

As of March 31, 2015, the most recent quarter for which data are available, 

the SC HELP had disbursed approximately $136 million on behalf of an 

estimated 9,209 South Carolina homeowners. South Carolina homeowners who 

believe they may be eligible for these programs should visit www.schelp.gov.