The data shows that people love living in North Carolina, especially in and around Charlotte. Our real estate market is booming, and so is the population, and people are looking at what lot costs are in and around the city. Prices vary significantly depending on location, zoning, and whether the land has utilities. This guide breaks down what you can expect to pay, factors influencing land prices, and how to make the best investment decisions.
What is the Average Price of Land for sale in Charlotte?
Land prices in Charlotte vary widely, with undeveloped rural plots starting as low as $30,000 and premium lots in highly sought-after areas costing more than $2,000,000. The average price of an acre is only the combination of the entire range of numbers and factors, but often, land for housing isn't sold in whole acres. Instead, the lots range in size and cost depending on various factors. Below, we'll run through what you can expect to pay for a lot of land (versus just what an acre costs) in Charlotte.
Here’s a general range of what a lot might cost in and around Charlotte:
- Rural Plots: These range from $30,000 to $600,000. With rural plots, asking questions and knowing what you want are important considerations, while also realizing you may need to install a well and septic. What makes up the right piece of land depends entirely on your goals and preferences.
- Residential Lots: In growing parts of Charlotte, these typically cost $200,000 to $600,000. The pricing of these lots is often easy to understand, as it's often based on location, and desirable neighborhoods often command higher prices. It's easier with a residential lot to identify if the land is right for you.
- Urban Lots: If you want to be in the city, lots may range from $600,000 to $2,500,000, varying based on location and lot size. Because of their locations, these lots may also be considered for commercial use.
- Lakefront Properties: Looking at Mooresville or the shores of Lake Norman? Depending on waterfront access and exclusivity, these lots start at $500,000+ for a smaller lot.
- Luxury Neighborhoods: In parts of South Charlotte, there are neighborhoods that offer opportunities to build with one of their approved builders. These vary in size and can span from $300,000 to $1,000,000. These communities have an HOA and an Architectural Review Committee that must approve all plans.
Factors Impacting the Cost of Land
What factors impact land cost, and how much do they matter? Like with most final costs, various factors are packed in that drive the final cost. We've listed a few of those below for you to look over. Each factor can be weighed differently, depending on the land itself.
Location
A key factor in land pricing is location. Land in Charlotte's urban center is naturally more expensive than plots in rural areas. Likewise, lakefront properties along Lake Norman or exclusive neighborhoods in South Charlotte are worth more due to their desirability and limited availability. Meanwhile, rural plots further from city infrastructure are significantly more affordable, especially if they lack utilities such as water, sewer, or electricity.
zoning laws
How do zoning laws affect land prices? Zoning laws play a massive role in land prices. In Charlotte, recent changes to the Unified Development Ordinance (UDO) have altered what can be built in certain areas, which impacts land value.
Land zoned for multi-family housing or commercial use tends to be more expensive, as these areas offer more significant development potential and higher returns on investment. Rural areas with fewer zoning restrictions tend to be less expensive, but you are further removed from amenities.
Supply and Demand
Since the state of North Carolina and our region are seeing a resurgence in popularity, more buyers are looking at the same plots of land, which naturally drives the cost up. With higher demand in some areas, buyers are looking at properties as tear-down opportunities for their new custom home build. If you see land that looks right for you, consider making an offer on it sooner rather than later.
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Is Land a Good Investment?
Buying land in Charlotte can be an excellent long-term investment. It's one of the oldest forms of investing, and even today, it is a great place to put your money. With the city’s growth, land values are likely to appreciate, especially in high-demand areas. However, your investment success depends on several factors. Below, we've listed these factors and how they may impact you.
Location
A lot in an up-and-coming neighborhood will gain value faster than in a remote area. However, if you want to own land and feel free to use it in the way you want, having a more rural piece of property makes more sense. It's important to find the location that works best for you. It's your land and potential home, after all.
Zoning & Development Plans
Utility Access
MISTAKES TO AVOID WHEN BUYING LAND
While land is a significant investment, it's possible to make mistakes along the way. We've found a few common issues buyers often face when investing in land. Finding the perfect lot for your custom home or long-term investment is important, but you don't want to rush it. Below, you'll find a few common mistakes to avoid to ensure a smooth purchase.
Skipping Steps
Speculative Land Buying
Ignoring Red Flags
nOTES TO KEEP IN MIND WHEN Financing land
Are there financing options available for land purchases? Yes, but financing land is different from getting a mortgage for a home. Banks consider raw land a higher risk, so loans often require:
- A larger down payment (typically 20 to 50%).
- Shorter loan terms (often 5 to 15 years instead of 30 years).
- Higher interest rates compared to traditional home loans.
Financing is usually easier for land with utilities already in place. Since they understand the regional market, local banks and credit unions are often the best choices. You can learn more about land loans and what might be possible for the type of property you need.
Finding the Right Property and Builder
Charlotte’s land market is diverse, with opportunities for every type of buyer. Whether you're looking at Lake Norman lots for sale, residential plots for sale, or the price of an acre in Charlotte, NC, understanding prices, zoning laws, and financing options will help you make a wiser investment. Understanding the difference between custom and semi-custom homes can also help you determine the correct budget for your entire project.
A knowledgeable land real estate agent or builder can help you find the perfect property while avoiding common pitfalls. If you plan on building a custom home, it's important to factor in the cost of buying a custom home into your total budget. We also recommend comparing the costs of remodeling, demolishing, or building new.
Working with Our Team
At Simonini Homes, we don't just build and remodel homes in and around Charlotte; we work with you to make your dreams come true. Our gallery can give you an idea of what your finished home or remodel might look like. We understand the importance of finding the right piece of property for your custom home or investment goals and how what's right looks different for everyone. We hope this blog gives you a grasp of what various pieces of land might cost and the factors that impact them.
Contact Us
If you're considering a custom home or remodel, contact us. We'd love to hear from you and schedule a consultation.
