Charlotte homebuilding slows amid rising land prices and infrastructure hurdles

CHARLOTTE — Homebuilding is slowing across the Charlotte metro as builders face rising land prices, infrastructure challenges and other development hurdles.

U.S. Census Bureau data shows 12,221 housing units were approved for construction across the metro from January through July. That includes 7,871 single-family homes and 4,259 apartments.

Single-family permits fell about 28% compared with the same period last year and 31% compared with 2021.

Overall, housing permits were down 17.7% from 2025 and 24.7% from the first seven months of 2021, according to the Charlotte Business Journal.

A recent Zillow analysis of Census data found Charlotte had a 54.7% decline in permits compared with its pre-pandemic trend line. Zillow said the pullback was especially common in Sun Belt markets that experienced major building booms during the pandemic.

Local builders say zoning, development regulations, infrastructure and land costs are among the biggest challenges.

Joe Padilla, director of land acquisition for Keystone Custom Homes and a vice president with the Home Builders Association of Greater Charlotte, said rising land prices and limited sewer capacity are making it harder to build homes at prices many buyers can afford.

He also said restrictions on housing density are adding to development costs and could make it harder for the region to maintain a balance between jobs and available housing.

Despite the slowdown, Charlotte continues to permit more new homes relative to its population than many other major metro areas.

A recent Realtor.com report gave Charlotte a “B” for homebuilding and affordability. The Charlotte metro ranked 23rd among the nation’s 100 largest metro areas, based largely on 2025 data.

Realtor.com found Charlotte’s permit-to-population ratio was 72% above what would be expected based on population and the national average. The metro’s median home listing price was $435,584, compared with a median household income of $81,514.

The latest permit data suggests builders are pulling back even as the region continues to face pressure to add more housing.

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