“Follow the money” is cogent advice for investors deciding which Sunbelt state to invest in. Unlike in previous years, however, the money trail leads not to Florida or Texas but to North Carolina, where millennials are flocking for tech and finance jobs and a lower cost of living. While cash flow is tight for landlords in the main hubs here, by picking the right neighborhood, those who buy smart and move fast can enjoy the spoils of a state on the move.
From July 2024 to July 2025, North Carolina attracted 84,000 new residents, according to Census data, more than any other state, and is consequently the third-fastest-growing state in the nation. While North Carolina has plenty to offer in terms of climate, geography, and jobs, the two Southern powerhouses that have grabbed the headlines over the past few years for attracting remote workers and job seekers—Florida and Texas—have handed North Carolina an immigration victory lap due to the rapid cost of housing and soaring insurance costs in the two states.
“The cost of housing, in particular, is driving young people and retirees to other states,” University of Florida research demographer Richard Doty told the Associated Press. “Also, insurance is higher in Florida than in most other states.”
Rival States Hit the Brakes
The post-pandemic tech boom in Texas appears to have hit the brakes recently, as major companies have laid off workers, while traditional coastal employment hubs such as New York and San Francisco have picked up.
Isabelle Bousquette, a tech reporter for the Wall Street Journal, said on Texas Standard, a Texas Public Radio station:
“There was a recent report from SignalFire, which is a venture capital firm, and that was showing that in 2024, employment in big tech companies declined 1.6% in Austin, and employment in tech start-ups declined 4.9%. We also saw declines in cities like Dallas, Houston, Denver, and Toronto. But then, you know, increases actually in New York and the Bay Area….A lot of the companies that moved to Texas have done layoffs since.”
Escalating rents and home prices have also contributed to the exodus. “I think a lot of people were frustrated and disappointed when the housing costs went up or fluctuated. And yeah, I think that was also one of the reasons that they may have headed out,” Bousquette added.
Smaller Cities Make for a Better Quality of Life
Also playing into North Carolina’s hands are the generally smaller, less bustling metros compared to Florida and Texas, where families can live closer to their jobs or work remotely while being in a scenic environment.
“North Carolina is attracting younger folks because we have so many nice areas in North Carolina—the mountains and beaches and lakes in between—that we’re benefiting from younger people who decided they can work from anywhere and would rather be in a nice area,” North Carolina state demographer Michael Cline told the Associated Press. “One of the things about North Carolina, our cities are not huge, and that may be attractive to folks, too.”
These factors have helped employment hubs such as Raleigh, Durham, and Charlotte evolve into diversified centers rather than single-industry boomtowns.
This is why Ralph DiBugnara, founder and president of real estate investment platform Home Qualified, recommended Raleigh as the prime place to invest in 2026.
“A great strategy for 2026 would be to look into any cities that are growing population because of workforce,” he told GoBankingRates. “This can be a major needle mover in higher prices for real estate.”
Employment Diversity
In addition to its core employment drivers in tech and finance, North Carolina has been broadening its employment reach in manufacturing and life sciences through Swiss drugmakers Roche and Novartis, as reported by Reuters. Construction for the buildout, along with the creation of permanent new positions, will result in thousands of new jobs.
The Landlord Play
For smaller landlords, the play is straightforward: More high-paying, stable jobs result in stronger rent rolls and deeper tenant pools over time. The real decision is choosing where to invest.
For all-cash buyers who are looking for a solid place to park their money and enjoy strong returns, Raleigh, Durham, and Charlotte in B and B+ neighborhoods close to the main employment area are a no-brainer. Research is needed, though, on the types of wages being paid so that rent does not take up the majority of a tenant’s paycheck.
High on a millennial’s list of must-haves will likely be a walkable neighborhood, with easy access to parks, trails, restaurants, and an adequate supply of housing to invest in with numbers that make sense. That means targeting submarkets with commuting distance to their jobs.
Important Stats
Raleigh, Charlotte, and Durham
Charlotte is a prime target for investors, according to lender Equitycheck, and has recently posted a 12% appreciation rate. It’s competitive and pricey. Prime investment areas include Uptown (City Center), NoDa and Plaza Midwood, Optimist Park, and Villa Heights, while more affordable suburban markets such as Huntersville, Matthews, and Indian Trail appeal to families.
Granitepark.co, a real estate investment blog, recommends University City, Steele Creek, and Concord in Charlotte as places to attract young professionals without premium pricing.
With a thriving tech industry, Raleigh has seen an influx of workers with higher-paying jobs in recent years, driving demand for housing. However, they come with higher price points.
In addition to Charlotte (Chapel Hill), Raleigh and Durham—the Research Triangle—Asheville, and Carolina Beach are strong short-term rental enclaves. There is also high student housing demand, especially in Chapel Hill, which has over 32,000 students and is home to the University of North Carolina. Raleigh is home to North Carolina State University (NC State), with 36,000 students. Duke University is based in Durham, with students paying high rents.
Greensboro
No mention of investing in North Carolina would be complete without mentioning Greensboro, which is generally affordable, with a median price of $257,450, according to Zillow, and strong cash flow potential in manufacturing, tech, and logistics.
Wilmington
The laid-back coastal city of Wilmington offers a small-town vibe with big-city amenities, attracting many well-heeled investors. The average home price of $406,726 means rental prices need to be high to turn a profit. However, for investors who can afford it, it’s a solid place to buy due to expected appreciation, consistent demand, and a steady short-term rental business.
“Wilmington should continue to grow, and because most of the land within the city limits is developed, we’ll continue to see more redevelopment of existing properties,” developer Jason Swain, of Wilmington-based Swain & Associates, told Wilmington Biz. “At the same time, much new growth will likely occur on the periphery of the city…With interest rates falling, we expect some projects that have been on hold to start moving forward as development fundamentals stabilize and expectations adjust to new market norms.”
Rent prices
Compared to the state average rent of $1,895, Raleigh’s average rent of $1,574 is on the lower side, especially considering the average home price of $424,924. Durham is also fairly expensive for rental income, with cap rates around 4.4%. Greensboro is around the same, but the lower-priced housing makes this far more attractive for investors from a cash flow perspective.
Final Thoughts
What North Carolina has going for it is momentum. It’s growing fast, with vibrant employment and education hubs, and people are moving there in droves, so it’s hard to put a foot wrong if you plan to buy. The main question for an investor is whether to buy for appreciation or cash flow, because the coveted job-heavy cities are pricier and, with current interest rates, won’t cash flow for leveraged buyers.
The smaller pockets in and around areas like Greensboro will, however, and with prices still around $250,000, even a break-even scenario with a view to tax breaks, debt paydown, and refinancing to a lower rate in the future could be a prudent move.
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