Overcoming Homeownership Barriers in Charlotte

1. The Affordability Hurdle

For many families, especially in Charlotte, the first barrier to homeownership is affordability. A significant number of residents are considered “cost-burdened,” which means they allocate a large portion of their income to rent. This situation leaves scant room for saving for a down payment or handling unexpected costs. When the majority of a monthly paycheck goes toward housing, critical financial building blocks are often neglected.

Adding to this complexity is the fact that many Black borrowers face higher mortgage denial rates and disadvantageous loan terms compared to their counterparts. This systemic hurdle can make the dream of homeownership feel even more daunting.

However, overcoming the affordability challenge is not impossible. Families need to explore various resources, such as down payment assistance and property tax exemptions, rather than relying solely on personal savings. Local programs exist that can provide substantial financial aid—sometimes even tens of thousands of dollars—dependent on eligibility. For families looking for a clear roadmap to navigate these resources, resources like Northwestern Mutual’s Complete Guide to Buying a Home can offer valuable insights.

2. Planning for the Long Run

Buying a home is just the tip of the iceberg; families must remember that the closing process is merely the first step in a much longer journey. It’s crucial for homebuyers to budget not just for the purchase, but also for ongoing expenses such as property taxes, insurance premiums, general maintenance, and unexpected repairs.

When I work with families, we engage in what I call a “stress test.” This involves analyzing potential scenarios like tax increases, rising interest rates, or the need for significant repairs. This exercise helps them grasp that the goal is not merely to buy a home but to sustain ownership over the long term. It’s also essential not to deplete savings entirely for the down payment or closing costs; I generally recommend maintaining at least three to six months’ worth of living expenses post-purchase.

3. Protecting Your Investment

As neighborhoods evolve and property values increase due to factors like gentrification and development, homeowners must be proactive about protecting their investments. One effective strategy is to apply for property tax relief programs, exemptions, or freezes. In Mecklenburg County, several programs are available for vulnerable populations, such as senior citizens on fixed incomes, those with disabilities, and veterans living in homes modified for their needs.

These crucial programs not only help residents keep their homes but also enable them to remain rooted in their communities despite the pressures brought on by rising costs. As Charlotte continues to grow and change, the barriers to homeownership remain significant, but so do the solutions.

Financial planning, leveraging multiple resources, and adopting thoughtful budgeting strategies can empower families to navigate the complex landscape of homeownership—not just to secure the keys but also to maintain their homes for years to come.

Deidra Willis is a Charlotte-based Certified Financial Planner (CFP®) and chartered life underwriter.