Key Trends Driving Mortgage Growth in North Carolina

Mortgage growth in North Carolina is outpacing many of its southern peers, driven by a mix of economic, demographic, and housing market dynamics. LBC Capital, a trusted mortgage broker with a strong presence across the U.S., has identified North Carolina as one of the most rapidly evolving markets. The state’s combination of job creation, migration trends, relative affordability, and limited housing supply has pushed mortgage activity higher than in neighboring states.

Strong Housing Market Expansion

North Carolina added over 94,000 housing units in 2024 alone, placing it fourth in the nation for residential housing growth. Since 2020, the state has seen its housing stock increase by approximately 365,000 units. Despite this expansion, demand continues to outpace supply, especially in urban and high-growth areas like Charlotte, Raleigh, and Durham.

The state’s Office of State Budget and Management highlights a consistent rise in housing demand across income levels. A persistent inventory gap has emerged, particularly in affordable and mid-tier housing. As a result, buyers are increasingly relying on mortgages to compete in a hot housing market.

Population Growth and Migration Patterns

North Carolina ranks among the top states for inbound migration. New residents are often relocating from high-cost regions such as New York, California, and parts of the Midwest. These movers are typically seeking more affordable housing, better quality of life, and employment opportunities.

Many of these new residents arrive with higher incomes or remote work flexibility, enabling them to purchase homes at higher price points. This drives up both home values and mortgage sizes. LBC Capital sees a direct correlation between migration patterns and increased mortgage origination volume.

Job Growth and Economic Resilience

North Carolina’s economic expansion has been broad-based, encompassing industries like finance, healthcare, biotechnology, and information technology. Major corporations are investing in the state, and its workforce is growing accordingly.

This strong job market supports higher borrowing capacity among residents. As incomes rise, so does the ability to qualify for larger mortgage loans. LBC Capital provides tailored mortgage solutions to help borrowers take advantage of these economic opportunities without overextending themselves.

Comparative Advantages Over Other Southern States

More Diverse Economic Base

While other southern states like Texas and Florida also enjoy strong economies, North Carolina’s strength lies in its economic diversity. Unlike states that rely heavily on oil, tourism, or agriculture, North Carolina benefits from a broad mix of high-wage industries. This reduces vulnerability to sector-specific downturns and creates a more stable environment for housing and mortgage growth.

Balanced Affordability

Home prices in North Carolina are rising, but they remain relatively affordable compared to national averages and especially when compared to other fast-growing southern states. For example, areas in Florida and Texas have seen significant price spikes that are beginning to erode affordability.

In contrast, North Carolina still offers buyers good value for money, particularly in suburban and rural areas. This balance attracts both first-time buyers and investors. LBC Capital works closely with clients to identify high-opportunity markets within the state.

Housing Supply Still Playing Catch-Up

Even though the state is building more homes, supply remains limited in key metro areas. Strict zoning laws, permitting delays, and community opposition to denser housing continue to constrain new development. This has kept housing inventories tight and competition fierce, resulting in higher home prices and increased borrowing.

These market conditions push more buyers toward financing options, increasing mortgage demand. LBC Capital helps buyers navigate competitive markets by offering pre-approvals and fast closings to strengthen their purchasing power.

Regulatory and Policy Support

Local and State-Level Reforms

North Carolina has started to explore zoning and land use reforms aimed at encouraging the construction of “missing middle” housing—such as townhomes, duplexes, and accessory dwelling units (ADUs). Although not yet widespread, these initiatives signal growing awareness of the housing shortage.

The state legislature is also reviewing bills to simplify permitting and increase density in urban zones. These changes could gradually help ease housing constraints, although their impact will take time to materialize.

Public and Private Sector Collaboration

Partnerships between local governments and private developers are gaining traction. Some municipalities are offering incentives for affordable housing construction or fast-tracking developments that meet specific density or affordability criteria. These efforts aim to stimulate supply while ensuring market stability.

LBC Capital stays informed about local policy changes and guides clients through regulatory developments that could impact mortgage products, financing timelines, or neighborhood dynamics.

What It Means for Homebuyers and Borrowers

Opportunities for First-Time Buyers

While competition is high, first-time buyers still find opportunities in North Carolina, especially outside major metro centers. Lower property taxes compared to other southern states also help improve overall affordability.

LBC Capital supports first-time buyers with loan options such as FHA, USDA, and down payment assistance programs. These products are tailored to help buyers break into competitive markets.

Growing Interest in New Construction

With inventory tight, many buyers are turning to new construction homes. Builders in North Carolina are responding with new developments, though delivery timelines and costs remain challenges.

LBC Capital provides specialized new construction loans and extended rate lock options to help clients secure financing even with longer build times.

Rising Demand for Jumbo and Refinance Loans

As property values increase, more homebuyers require jumbo loans—mortgages that exceed conforming loan limits. LBC Capital offers competitive jumbo loan programs for high-income borrowers relocating to North Carolina.

At the same time, current homeowners are tapping into rising equity through cash-out refinances. These funds are being used for home improvements, debt consolidation, or investments. LBC Capital ensures borrowers understand both the opportunities and risks associated with refinancing.

Choose LBC Capital

Mortgage activity in North Carolina is growing faster than in other southern states due to a combination of population growth, economic opportunity, relative affordability, and constrained housing supply. These factors create a competitive housing environment where borrowing plays a central role.

LBC Capital understands these dynamics and offers personalized mortgage solutions to help clients thrive in fast-moving markets. Whether you’re a first-time buyer, relocating professional, or investor, LBC Capital ensures you have the guidance, tools, and support needed to make smart, confident home financing decisions in North Carolina.