Passive real estate investing works best when long-term fundamentals do the heavy lifting. Markets with sustained population growth, diversified job creation, and a stable regulatory environment tend to reward patient capital—especially when investments are professionally managed and structured for cash flow.
North Carolina consistently checks those boxes.
This is not a story about hype or short-term speculation. It’s about durable demand drivers that support apartments and neighborhood shopping centers across multiple cycles.
Population Growth That Translates Directly to Housing Demand
North Carolina has been one of the fastest-growing states in the country for more than a decade.
According to the U.S. Census Bureau, North Carolina added roughly 165,000 residents between July 2022 and July 2023, ranking among the top states for absolute population growth. That growth has continued into 2024 and 2025, driven primarily by domestic in-migration, not just natural population increase.
The U-Haul Growth Index, which tracks one-way household moves rather than surveys or estimates, has repeatedly ranked North Carolina among the top in-migration states nationwide in recent years.
For passive real estate investors, this matters because:
- Population growth drives household formation
- Household formation drives rental demand
- Rental demand supports occupancy and rent growth
In North Carolina, this growth is not confined to a single metro. Raleigh-Durham, Charlotte, and Wilmington get most of the headlines, but secondary and tertiary markets benefit as well—often with lower development risk and less volatility.
Job Creation Backed by Real Capital Investment
North Carolina’s population growth is reinforced by broad-based job creation.
The state has become a destination for:
- Life sciences and biomanufacturing
- Advanced manufacturing and battery technology
- Aerospace and defense suppliers
- Financial services, fintech, and professional services
- Research and technology tied to universities and innovation hubs
Recent corporate announcements regularly involve hundreds of millions—or billions—of dollars in committed capital and thousands of jobs with above-average wages. These are not transient jobs. They are long-term facilities with deep supply chains and regional spillover effects.
From a passive investor’s standpoint, job growth with real capital behind it:
- Supports long-term tenancy
- Reduces reliance on a single industry
- Creates demand for both housing and daily-needs retail
A diversified employment base is one of the quiet strengths of North Carolina’s economy.
A Business Environment That Encourages Long-Term Growth
North Carolina has spent years building a reputation as a pro-business, pro-investment state.
Key features include:
- Competitive corporate and personal income tax structures
- Predictable regulatory frameworks
- State and local economic development incentives tied to job creation
- A development environment that generally supports housing and commercial growth
For real estate investors, predictability matters. Markets where regulations shift abruptly or where development is actively discouraged tend to produce more volatility. North Carolina’s approach has been comparatively steady and pragmatic.
That stability benefits passive investors who are underwriting 5–10 year hold periods, not short-term trades.
Housing Affordability That Still Supports Rent Growth
North Carolina is no longer a “cheap” state—but relative affordability remains a meaningful advantage.
According to data from the National Association of Realtors and the Federal Housing Finance Agency, home prices and rents in North Carolina remain more accessible than many coastal and gateway markets. That affordability supports:
- Continued in-migration
- Workforce retention
- Household formation rather than doubling-up
From an investment perspective, this balance is important. Rent growth driven purely by scarcity can become self-defeating. Rent growth supported by income growth and affordability tends to be more durable.
For professionally managed multifamily investments, this environment supports:
- Stable occupancy
- Incremental rent growth
- Lower tenant turnover
Neighborhood Retail That Benefits from Daily Life, Not Tourism
North Carolina’s growth also supports neighborhood shopping centers—a core focus for many income-oriented real estate strategies.
As population expands:
- Grocery stores
- Medical services
- Restaurants
- Fitness, childcare, and personal services
all follow rooftops.
This type of retail is driven by daily needs, not discretionary travel or seasonal tourism. In growing suburban and secondary markets, neighborhood centers often lag residential development, creating opportunities for well-located, necessity-based retail assets.
For passive investors, this translates into:
- Diverse tenant bases
- Shorter lease rollover risk than single-tenant assets
- Income streams tied closely to population density
Infrastructure, Universities, and Long-Term Economic Anchors
North Carolina’s growth is reinforced by institutions that anchor regions for decades:
- Major public and private universities
- Research parks and innovation districts
- Transportation and logistics infrastructure
- Healthcare systems and regional medical hubs
Universities alone contribute billions annually to the state’s economy and act as magnets for talent, research funding, and employer partnerships. These anchors support steady housing demand even during broader economic slowdowns.
A Market Well-Suited to Passive Investment Structures
North Carolina has a mature ecosystem of:
- Professionally managed real estate sponsors
- Institutional-quality operating partners
- Standardized LLC and LP investment structures
For passive investors, this allows:
- Participation in larger, diversified assets
- Professional management without day-to-day involvement
- Alignment with sponsors focused on long-term performance
This is especially attractive to investors who value cash flow, capital preservation, and tax efficiency alongside growth.
A Long-Term Market That Rewards Patience
North Carolina is not a speculative market built on rapid flips or financial engineering. It is a fundamentals-driven market that tends to reward:
- Conservative underwriting
- Local expertise
- Long-term capital
For passive investors seeking stable income and durable returns, that is often exactly the point.
Final Takeaway
North Carolina stands out not because of a single metric, but because multiple fundamentals reinforce each other:
- Sustained population growth
- Diverse, well-capitalized job creation
- A business-friendly operating environment
- Relative housing affordability
- Strong demand for workforce housing and neighborhood retail
No market is risk-free. But North Carolina offers something increasingly rare: growth supported by real people, real jobs, and real capital.
That combination makes it a compelling market for passive real estate investors focused on long-term outcomes—not short-term headlines.
Eddie Coleman, CCIM, is the Principal Investment Officer at NC Capital Group. With over 40 years of experience in Commercial Real Estate in North Carolina and South Carolina, his experience spans multifamily, retail, office, historic adaptation, etc. In addition to advising clients and brokering transactions, he has extensive knowledge of North Carolina through experience in corporate site acquisition, development, capitalization, HUD financing, etc. He holds the prestigious Certified Commercial Investment Member (CCIM) designation.