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Matthews, NC: Rising Home Values and Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Matthews, a suburb of Charlotte located in Mecklenburg County, North Carolina, is known for its small-town atmosphere and proximity to big-city amenities. Over the past decade, Matthews has experienced significant growth and changes in its housing market. The city has seen a gradual shift from homeownership to renting, with average home prices steadily increasing and average rent prices following suit.
The homeownership rate in Matthews has shown a consistent downward trend from 2013 to 2022. In 2013, 76% of residents were homeowners, but by 2022, this figure had decreased to 70%. This 6% decline in homeownership corresponds with a substantial increase in average home prices. In 2013, the average home price in Matthews was $204,439. By 2022, it had more than doubled to $450,655, representing a 120% increase over nine years. This sharp rise in home prices likely contributed to the decline in homeownership, as affordability became a growing concern for potential buyers.
The relationship between federal interest rates and homeownership rates in Matthews follows a well-established trend. From 2013 to 2015, when interest rates were at historic lows (0.11% to 0.13%), homeownership rates remained stable at around 76%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates steadily declined. This inverse relationship demonstrates how higher interest rates can make mortgages less affordable, potentially discouraging home purchases.
As homeownership declined, the percentage of renters in Matthews increased from 23% in 2013 to 30% in 2022. This shift coincided with a rise in average rent prices. In 2013, the average rent was $1,151 per month. By 2022, it had increased to $1,422, a 23.5% jump. The growing renter population and rising rent prices suggest increased demand for rental properties in Matthews. This trend may be partly attributed to the city's population growth, which increased from 38,622 in 2013 to 39,652 in 2022, potentially putting pressure on the rental market.
In 2023 and 2024, Matthews continued to see growth in its housing market. The average home price in 2023 reached $468,625, a 4% increase from 2022. By 2024, it further rose to $489,974, representing a 4.6% year-over-year increase. This continued appreciation occurred despite relatively high federal interest rates of 5.02% in 2023 and 5.33% in 2024, suggesting strong demand for housing in Matthews despite higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in Matthews will continue to rise over the next five years, albeit at a potentially slower pace than seen in recent years. Average rent prices are also expected to increase, driven by ongoing demand for rental properties and the overall cost of living increases. However, the rate of increase for both home prices and rents may moderate if interest rates remain elevated, potentially affecting affordability and demand.
In summary, Matthews has experienced a notable shift from homeownership to renting over the past decade, driven by rapidly increasing home prices and changing economic conditions. The inverse relationship between interest rates and homeownership rates is evident, with higher rates corresponding to lower ownership percentages. Despite these challenges, Matthews continues to see growth in its housing market, with both home prices and rents on an upward trajectory. These trends reflect the city's ongoing attractiveness as a residential area and its ability to adapt to changing market conditions.
