Looking at the latest real estate market trends in Winston-Salem, 2021 should be a great year for investors!
Winston-Salem is located in the heart of Piedmont Triad region in Forsyth County. It is home to nearly a quarter million residents. Industry sectors include manufacturing, textiles, agriculture, nanotech and biotech.
The Winston-Salem rental property market is becoming attractive for multiple reasons. For example, there is strong rental demand from tenants, the job market looks promising, the population is growing, and the economy is pretty dynamic.
There are also many areas in Winston-Salem that would prove promising for a real estate investment.
So, in this article, we will go over why you should invest in this city, as well as list our top 5 neighborhoods to invest in!
What Makes Winston-Salem Attractive for Real Estate Investors?
As a real estate investor, there are many reasons to invest in Winston-Salem. Here are our top 8 reasons.
1. Tax Laws are Favorable
On average, North Carolina taxes are comparatively low compared to other states. The property tax is below that of the national average, at a rate of 0.81% of the property's value. There is a low of 2.5% corporate income tax. Sales taxes are in line with the national average.
2. North Carolina is Landlord-Friendly
This is definitely good news for landlords! The maximum security deposit, for example, is equivalent to twice the monthly rent. However, most other states limit the maximum security deposit amount to a month's rent.
In addition, evictions laws are also pretty straightforward and an eviction typically takes an average of 35 days.
3. The Economy is Strong
This is another reason why serious real estate investors should consider investing in Winston-Salem real estate. Even with the effects of the Covid-19 pandemic, the economy is still registering a positive growth.
4. There is a Large Student Market
The city is home to many educational institutions, including the Winston-Salem State University. Alone, the state university is home to a staggering 5,000 students.
Another University is Wake Forest, which is home to over 7,000 students and almost 1,000 staff members.
This large population of students and staff ensures a consistent demand of rental properties in the area.
5. Winston-Salem is a Top Spot for Retirees
Just last year, the city was ranked among the best places for retirees by Forbes Magazine. Retirees love the city for its comparatively cheaper housing, temperate weather, and overall quality of life.
6. The City's Downtown is Expected to Continue Growing
While the downtown area of the city is pedestrian and bicycle friendly, it also has great public transit systems compared to most cities.
There are also many educational institutions downtown, increasing the student population. In addition, many millennials seek housing in this area.
So, overall, you can expect long-term population growth in the city's metro area.
7. Real Estate is Appreciating in Value
In 2019, the city's housing market saw up to 9% in real estate growth. Also, the city's housing market is relatively affordable. If you are unable to afford buying a property in one of the hotter markets, Winston-Salem real estate is a good option to consider.
The average home goes for around $160,000, which is roughly $60,000 less than the national average.
8. The Population is Expected to Continue Growing
The steady population growth is another factor that makes Winston-Salem real estate attractive to potential investors. Although smaller than Durham and Charlotte, the Winston-Salem metro area continues to register about 1% annual growth.
Best Areas to Invest in Winston-Salem
Location, location, location is every real estate agent's mantra – and for good reason. The location of your income property is very important. You want to own a rental that is close to scenic views and green space, as well as various amenities.
The following are top neighborhoods to consider when looking to invest in Winston-Salem real estate.
1. Bermuda Run
Bermuda Run is located in Davie County. The neighborhood is close to the Tanglewood Park, Bermuda Run County Club, and Oak Valley Golf Club.
Here are some important stats about the neighborhood:
- Bermuda Run is home to 2,468 people.
- The median household income is $80,310.
- The median age for people living in Bermuda Run is 57 years.
- The cost of living is 8% higher than the national average.
Incorporated as a town in 1991, Lewisville is part of the Piedmont Triad community. The neighborhood is home to plenty of parks, great schools, and many annual events.
Important stats about the neighborhood include:
- Lewisville is home to about 14,228 people.
- The median household income is $79,146.
- The cost of living in Lewisville is 4% lower than the national average.
3. Old Salem
Old Salem is a historic district of Winston-Salem, and was originally inhabited by the Moravian community. Core attractions of the district include Salem Tavern, St. Philip's Moravian Church, and the Inspectors House.
Neighborhood stats include:
- Old Salem is home to about 2,218 people.
- The average household income for a family in Old Salem is $32,050.
4. South Marshall
This is arguably one of the top neighborhoods in the Winston-Salem area. It's particularly known for its many and diverse retail and dining options. The Di Lisio's and Willow's Bistro are some of the top dining options.
Neighborhood highlights include:
- South Marshall is home to 1,393 people.
- The average household income is $38,864.
- The median age is 42 years.
Reynoldstown is a national historic district. The neighborhood features 183 contributing buildings that were mostly built between 1919 and 1949. These historic buildings are appreciated by residents for their unique architecture.
This neighborhood is home to 548 people.
There you have it – 8 reasons to consider investing in Winston-Salem and our top 5 neighborhoods to invest in!
As an overview, we recommend investing in the following areas:
- Bermuda Run
- Old Salem
- South Marshall
For more information, please contact TE Johnson & Sons.