Charlotte's MSA posts 4.7% growth driven by finance and housing sectors

The Charlotte City Council held its first budget workshop of 2025 on February 10, focusing on the city's economic growth and housing trends. The meeting highlighted that the Charlotte Metropolitan Statistical Area (MSA) experienced a robust growth rate of approximately 4.7% in 2023, outpacing both state and national averages. Key sectors contributing to this growth included finance, insurance, professional services, information, and retail trade.

Looking ahead, projections indicate a slowdown in growth, with estimates suggesting a rate of 2.5% to 3.0% by 2026. Notably, there are currently no forecasts predicting a recession, which bodes well for the city's economic outlook.

The workshop also addressed housing trends, revealing a strong performance in housing permits and completions in 2023 and 2024. Although there is a slight decline in permits from 2023 to 2024, the overall number of completed housing units has been increasing since 2022. It typically takes about 7 to 9 months for single-family homes and 19 to 21 months for multifamily units to move from permitting to occupancy. This timeline suggests that many newly permitted units will soon contribute to the city's property tax base.

Inflation and interest rates were also discussed, with the current inflation rate at 2.9%, down from a peak of 9.1% in 2022. The Federal Reserve's management of inflation has been noted as effective, with interest rates currently at 4.3%. However, there are signs of slowing retail and food spending, alongside rising credit card debt, which may impact consumer behavior in the coming months.

The council projected a sales tax growth of 3.5% for 2025, reflecting a cautious optimism about the city's financial health despite the challenges posed by inflation and consumer spending trends. The discussions underscored the importance of monitoring these economic indicators as the city prepares its budget for the upcoming fiscal year.