Capitol Drive, a neighborhood in Charlotte, North Carolina, is characterized by a predominantly renter-occupied housing market that has undergone significant changes over the past decade. This area has experienced notable fluctuations in population density and housing prices, with a clear trend towards increased rental occupancy. The homeownership rate in Capitol Drive has remained relatively low, fluctuating between 7% and 11% from 2013 to 2022. Despite this low rate, average home prices have seen a substantial increase. In 2014, the average home price was $63,190, which rose dramatically to $242,200 by 2022, representing a 283% increase over eight years. This stark contrast between homeownership rates and rising home prices suggests a growing affordability gap for potential homeowners in the neighborhood.

Federal interest rates have played a role in shaping homeownership trends. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.09% to 0.40%), the homeownership rate in Capitol Drive increased from 7% to 11%. However, as interest rates began to rise from 2017 onwards, the homeownership rate stabilized at around 10%, indicating that higher borrowing costs may have deterred potential buyers.

Renter occupancy has dominated the housing market in Capitol Drive, consistently accounting for about 90% of occupied units since 2013. Average rent prices have shown an upward trend, albeit with some fluctuations. In 2013, the average rent was $563, which increased to $932 by 2022, representing a 65.5% increase over nine years. This rise in rent prices coincided with population growth, from 392 residents in 2013 to 665 in 2022, suggesting increased demand for rental properties in the area.