In North Carolina’s fast-moving housing market, households earning $500,000 or more hold an outsized influence despite their small numbers. These top earners, representing about the top 1% of incomes statewide, often set the tone for luxury markets and high-end developments. Between 2018 and 2023, their buying patterns revealed a strong appetite for spacious properties, premium amenities, and prime locations—from Charlotte’s upscale enclaves to coastal retreats along the Outer Banks. Compared to the decade before, these buyers showed sharper preferences for newer builds, gated communities, and properties that blend privacy with convenience. Their choices offer a window into how wealth is reshaping residential trends across North Carolina.
North Carolina’s $500K+ Earners: A Rarefied Group
North Carolina’s population is large (over 10 million people), but only a very small share of households earn over $500,000 a year – on the order of 1 out of 100 households. In raw numbers, this elite cohort likely comprises only a few tens of thousands of the state’s ~4.4 million households. Earning $500K+ puts a family well into the top 1% of incomes in North Carolina. For context, the median household income statewide is around $62,000, so a $500K income is nearly 8 times higher than the typical household’s income.
These high earners saw their incomes climb substantially in recent years. Between 2018 and 2023, the average income of North Carolina’s top 5% of households rose from about $341,000 to $446,000, a jump of roughly 31%. This growth far outpaced inflation and gave affluent families even more buying power in the housing market.
The vast majority of $500K+ households are homeowners, often owning multiple properties. Many are in their prime earning years (40s, 50s, early 60s) and commonly are dual-income couples (for example, two professionals each earning high salaries). This group includes top executives, successful entrepreneurs, physicians, attorneys, and others at the peak of their careers.
Geographic Concentrations of Wealth
North Carolina’s wealthy households are heavily concentrated around the state’s major economic centers. Charlotte (Mecklenburg County) and the Raleigh-Durham area (Wake County and Orange/Durham counties) account for a large share of $500K+ earners and high-end home purchases. These metros are hubs for banking, technology, biotechnology, healthcare, and universities, which produce many high-paying jobs.
Corporate relocations have bolstered this trend – e.g. Honeywell moving its headquarters to Charlotte in 2019 brought an influx of executives. Many incoming high-paid professionals are transplants from higher-cost states. They often find that in North Carolina’s cities, “you can get more house for the money” compared to places like New York or San Francisco.
Beyond the big metros, some smaller regions stand out for wealthy homebuying. Resort and retirement destinations see significant activity from high-income buyers. For instance, coastal counties like Dare and Brunswick (Outer Banks and Wilmington areas) and mountain communities around Asheville (Buncombe County) attract $500K+ earners purchasing vacation homes or retirement retreats.
In Dare County (Outer Banks), a remarkable 44% of all housing units are seasonal vacation homes – many owned by affluent families from North Carolina or out of state. Likewise, areas such as Watauga County in the Blue Ridge Mountains (home to Boone/Blowing Rock) have drawn wealthy second-home buyers from Charlotte and beyond.
Primary Residence Purchases: Market Shifts from 2018 to 2023
From 2018 through 2023, the housing market went through dramatic swings, and high-income buyers in North Carolina adapted their strategies through each phase. We can divide this period into three distinct sub-periods: the pre-pandemic years (2018–2019) of steady growth, the pandemic boom (2020–2021) of frenzied buying, and a post-boom adjustment (2022–2023) as conditions cooled.
Pre-Pandemic (2018–2019)
In 2018 and 2019, North Carolina’s economy was strong and the housing market was on a generally steady upward trajectory. High earners were active homebuyers, though in a more measured way compared to the later boom. Many affluent families were “move-up buyers” during this time – they leveraged rising incomes and the equity in their existing homes to upsize into larger or more luxurious houses.
Mortgage interest rates in 2018–2019 were historically low (around 4% for a 30-year loan), which made financing these big purchases attractive.
Major metro areas saw increased demand and tight supply in the late 2010s, even at the high end. In Charlotte, for instance, the number of homes listed for sale fell nearly 6% in 2018 vs. 2017 amid strong buyer demand. Upscale neighborhoods in Charlotte (such as Myers Park, SouthPark, and Lake Norman communities) and in the Triangle (like Cary, Chapel Hill, and North Raleigh) experienced competition from well-off buyers relocating to the region or moving up locally.
Pandemic Boom (2020–2021)
The COVID-19 pandemic upended the housing market in 2020 and 2021, leading to an unprecedented homebuying boom – especially among the affluent. Once initial lockdowns eased, wealthy buyers in North Carolina (as elsewhere) sprang into action. Several unique factors converged: mortgage rates plummeted – the 30-year fixed rate hit a record low of about 2.65% in January 2021 – making it exceptionally cheap to borrow money. Meanwhile, the stock market and personal savings of many high earners grew, and the newfound acceptance of remote work allowed some to live where they pleased.
Many $500K+ earners in North Carolina “traded up” to larger homes with more space, amenities, and land. With families spending so much time at home, features like extra bedrooms (for home offices, gyms, or study rooms), large yards, pools, and home theaters became highly coveted.
The Second-Home Surge
Another trend was wealthy households snapping up vacation homes and retreats. Rather than cancel travel, many chose to buy their own getaway. Second-home purchases surged: Nationally, vacation home sales jumped 16.4% in 2020, far outpacing the ~5.6% growth in total existing home sales. By early 2021, vacation properties made up 6.7% of all home sales, up from 5% before the pandemic.
North Carolina’s beach and mountain areas benefited enormously from this trend. Mountain cabins, lake houses, and beach cottages were scooped up by the wealthy. For instance, mountain resort towns like Cashiers and Banner Elk saw luxury cabins selling fast, and coastal enclaves from Wilmington down to the Outer Banks experienced bidding wars on high-end listings.
Inventory plummeted in these destinations – the Outer Banks had a record low number of homes on the market by late 2020–21, with fewer than 300 active listings at one point (down from over 1,200 normally). Prices skyrocketed accordingly: in Dare County, the median home price jumped over 20% in 2021 alone. One 8-bedroom oceanfront beach house in Corolla that sold for $2.05 million in 2019 resold for $3.07 million in 2021.
Fierce Competition at Every Price Point
All this demand led to intense competition and bidding wars, even for multi-million-dollar homes. It wasn’t uncommon for sellers of a $1.5 or $2 million property in Raleigh or Charlotte to receive multiple offers, some above asking price, during 2021. Luxury home prices rose much faster than the broader market during this period.
By mid-2021, both the Charlotte and Raleigh areas were seeing double-digit annual price gains, and the share of homes valued over $1 million hit record highs. In the Raleigh metro, for example, only about 0.9% of homes were worth $1M+ in early 2020, but by early 2022 that share had leapt to 3.5%. Charlotte saw a similar jump from around 1.3% to 3.1% of homes crossing the $1M mark. In other words, the luxury segment essentially tripled in just two years in some areas.
Crucially, many wealthy buyers during the pandemic boom were unfazed by higher prices because of low financing costs and strong balance sheets. Those who could pay cash did so; others locked in ultra-low 30-year fixed loans, often with 20%+ down payments.
Post-Boom Resilience (2022–2023)
By early 2022, the housing boom began to temper. The Federal Reserve started raising interest rates aggressively to combat inflation, which led to a sharp rise in mortgage rates. By late 2022 and into 2023, a 30-year mortgage was hovering around 6–7%, a dramatic change from the sub-3% rates of a year before. Higher financing costs cooled demand in the overall housing market and home sales volumes dropped. However, the impact on the luxury segment – and on North Carolina’s $500K+ buyers – was more limited than on average buyers.
Many affluent homebuyers proved resilient despite the tighter market conditions. One major reason is that a much larger share of high-end purchases are done with cash or large down payments, reducing reliance on mortgages. By late 2023, nearly half of luxury home sales nationwide were all-cash deals. In the fourth quarter of 2023, 46.5% of high-end home purchases were made in cash, up from about 40% a year earlier.
Another factor was the lock-in effect: many high-income homeowners who had secured ultra-low interest loans in 2020–2021 were reluctant to sell their homes (and give up those loans) unless they had a compelling reason. This contributed to very low inventory of listings in 2022–2023, especially for desirable luxury single-family homes.
High-end prices in North Carolina generally held firm or continued to increase slightly through 2022 and 2023, even as the broader market plateaued. By the end of 2023, Charlotte’s luxury median sale price was about $1.35 million (up ~9% year-over-year), and Raleigh’s was similarly elevated.
What Are They Buying? Property Types and Preferences
When it comes to what kind of homes North Carolina’s $500K+ earners purchase, their choices reflect both their means and their lifestyle priorities. In the 2018–2023 period, three broad categories stood out: luxury single-family homes (by far the most common choice for primary residences), high-end condos or townhouses (often for downsizers or urbanites), and custom builds or land (for those who want a tailor-made home or an investment in property).
Luxury Single-Family Homes
The large single-family home remained the prototypical purchase for high-income households in North Carolina. These buyers often sought out spacious, high-quality houses in exclusive neighborhoods – essentially, the classic “dream home.” Such properties typically feature 4 or more bedrooms, 3,500+ square feet, high-end finishes (gourmet kitchens, hardwood floors, luxury appliances), and ample land or lot size. Many are newly built or recently renovated, since affluent buyers prize modern amenities and turnkey condition. Popular settings include leafy suburbs and gated communities known for privacy, good schools, and prestige.
In the Charlotte area, wealthy buyers gravitated to communities like Myers Park, Eastover, Ballantyne, and the Lake Norman towns. A budget of around $1 million can secure a substantial home in these areas, and at $2–3 million and above one can find truly expansive estates.
In the Raleigh-Durham Triangle, hotspots for luxury single-family homes include Cary, North Raleigh, Chapel Hill, and suburbs like Apex and Wake Forest. Many tech executives and doctors in the Triangle purchased homes in master-planned communities or on multi-acre lots just outside city centers.
During 2020–2021, these single-family homes with more space were especially in demand. Floor plans with extra rooms for dual home offices or remote learning were a strong selling point. It was common for high-end buyers to seek houses with at least one dedicated office (if not two), given that both spouses might be working from home.
High-End Condos and Townhomes
While single-family houses dominate, a subset of North Carolina’s affluent buyers opt for luxury condominiums or townhouses. These tend to appeal to two groups: empty nesters/retirees downsizing from big houses, and some young professionals or executives who prefer an urban, low-maintenance lifestyle. From 2018–2023, the state saw a boom in upscale condo development in its city centers to cater to this market.
In Charlotte, several high-rise condo projects in neighborhoods like Uptown, South End, and Myers Park marketed themselves to luxury buyers. These buildings offer units with prices often exceeding $1 million, full of high-end features (floor-to-ceiling windows, smart home systems, concierge services).
In the Triangle region, downtown Raleigh and Durham both saw new luxury condo complexes. Durham’s condo market especially took off – the first $1M condo in Durham County sold in 2015, but by 2023 nearly 10% of condos sold for $1M+.
Older wealthy couples often choose condos to “right-size” their life after their children are grown. They may sell a 5,000 sq. ft. suburban house and move into a 2,500 sq. ft. penthouse that still feels spacious but is easier to maintain. Such buyers still demand luxury – they want high-grade finishes, building amenities like gyms or rooftop lounges, and walkable locations near restaurants and cultural attractions.
Younger high-earning professionals sometimes choose luxury townhomes or condos if they’re not ready for the upkeep of a big house or if they value location highly. A 30-something tech manager in downtown Durham might splurge on a fancy condo to be in the heart of things.
Custom-Built Homes and Land Purchases
Another avenue some affluent North Carolina buyers took was purchasing land or new construction to build custom homes. With ample land available in parts of the state, a number of $500K+ earners chose to commission their dream home rather than buy an existing one – particularly during the boom when existing inventory was scarce. From 2018–2021, builders in NC reported strong demand for custom builds in high-end subdivisions.
Around the Triangle, wealthy buyers bought lots in communities like The Preserve at Jordan Lake or Wakefield Estates, hiring architects and builders to create one-of-a-kind residences. In Charlotte’s suburbs (e.g., Waxhaw, Weddington), it was common for an executive to purchase a multi-acre lot in a gated community and construct a bespoke home.
Besides building new, some high earners simply bought large tracts of land or unique properties as an investment or future homesite. Especially in rural or exurban areas, a tech millionaire might buy 50 acres of countryside with plans to eventually retire there or create a family compound.
Upsizing, Downsizing, and Second Homes
A key question is how these affluent buyers’ goals evolved: were they mostly upsizing to larger homes, downsizing to smaller ones, or acquiring second homes? The answer is all of the above – different subgroups engaged in each of these behaviors from 2018 to 2023, taking advantage of their financial capacity and the market’s opportunities.
Upsizing was very common, particularly for those in mid-career with families. As incomes rose and as people sought more space (especially during the pandemic), many $500K+ households moved from starter or mid-level homes into what they considered their “forever homes.” For instance, a family in their 40s with children might upgrade from a 2,500 sq. ft. house to a 5,000 sq. ft. home on a larger lot in a prestigious neighborhood.
Downsizing was another trend but with a twist. Typically, downsizing is associated with retirees moving into smaller, cheaper homes. In the case of $500K+ earners, downsizing didn’t necessarily mean cheap – it meant moving to a residence that is smaller or easier to maintain, but still luxurious. Many wealthy empty-nesters in North Carolina from 2018–2023 sold the big family house in the suburbs and relocated to high-end condos or smaller single-family homes. However, they often stayed within upscale market segments.
Second home purchases emerged as a major theme of 2018–2023, especially amplified by the pandemic. During 2020–21, wealthy buyers who suddenly had more flexibility (and perhaps a desire to escape crowded cities) poured into vacation home markets. Beach towns like Wrightsville Beach, Emerald Isle, Duck, and Corolla saw record sales. Mountain areas like Asheville, Banner Elk, and Highlands were also hot spots.
Historical Comparison: 2018–2023 vs. 2008–2017
Looking at the recent trends in context, the differences between 2018–2023 and the prior decade (2008–2017) are striking. The earlier period included the housing bust and Great Recession (2008–2011) and the recovery years in the mid-2010s. In contrast, 2018–2023 featured an extraordinary boom and rapid growth in luxury real estate, despite a brief pandemic recession in 2020.
During 2008–2012, the housing market was in turmoil. Even wealthy buyers generally pulled back. Home values fell or stagnated for several years after the 2008 financial crisis. In North Carolina, as in the nation, luxury home sales slowed to a trickle in those worst years. High-end buyers often adopted a cautious “wait and see” attitude, not wanting to catch a falling knife in real estate.
By around 2013, conditions stabilized and recovery began. From 2013–2017, the market improved steadily. Prices climbed back gradually. North Carolina’s economy and population were growing, adding more high-income households. The number of $500K+ earners was increasing thanks to new jobs (e.g., expansion of tech companies in the Triangle and finance in Charlotte). This created more demand for luxury homes, but the growth was relatively moderate and linear compared to the rollercoaster of 2020–2023.
The price trajectory in 2018–2023 was dramatically steeper than in 2008–2017. To quantify: according to the Federal Housing Finance Agency, North Carolina’s House Price Index (which tracks overall home values) shot up roughly 70% from 2018 to late 2023. In just six years, home values gained as much as they might have in a dozen years normally. In contrast, from 2008 to 2017, the trend was first down, then up – overall more of a U-shaped recovery.
By 2022–2023, economic conditions tightened (higher rates, etc.), but unlike a true crash, the luxury market mostly held its gains. Wealthy buyers had accumulated significant home equity and many were locked into low mortgage payments, so there was little distress selling. This is a big contrast to 2008–2011, when even some high-end properties fell into foreclosure.
Conclusion
From 2018 through 2023, North Carolina’s highest-earning households ($500K+ incomes) have profoundly shaped the state’s residential real estate trends. This period saw an explosive boom in luxury homebuying, driven by rising incomes, favorable interest rates (for much of the span), and a pandemic-era reevaluation of living preferences.
Compared to the prior decade, the recent trends have been characterized by faster growth, higher price points, and greater geographic spread of luxury activity. The number of million-dollar-plus properties skyrocketed, and owning multiple homes became more common among the elite. Even as interest rates rose later in the period, this affluent group’s purchases proved resilient, often buoyed by cash transactions and accumulated equity.
Going forward, these patterns suggest that high-income households will continue to be a critical force in the state’s housing market. Their preferences – whether it’s for larger estates, turnkey condos, or scenic second homes – will guide builders and influence market dynamics. North Carolina’s appeal to the well-off seems likely to endure. While the frenetic pace of the early 2020s has cooled, the fundamental position of $500K+ earners remains strong: they have the financial power to transact in any market climate.
References
- Axios Raleigh – Here’s how much money you need to make to be among NC’s 1%
- GOBankingRates – Here’s How Much the Definition of Rich Has Changed in Every State
- Redfin – A Record 8% of U.S. Homes Are Worth $1 Million or More
- Redfin – Luxury Home Prices Hit All-Time High As Record Share of High-End Buyers Pay Cash
- Mansion Global – Ripe for Investment, Charlotte, North Carolina, is Bucking the U.S. Slowdown Trend
- Indy Week – In Durham, Million-Dollar Home Sales Are No Longer Outliers
- NAR Economists’ Outlook – Vacation Home Sales Surges During Pandemic
- NC Housing Finance Agency – Demographic Trends: More Population, Many More Households
