For first-time homebuyers seeking a balance of affordability, lifestyle, and growth potential, North Carolina is a standout choice.
With a blend of thriving cities, scenic small towns, and a relatively low cost of living, the Tar Heel State offers some of the best conditions for those looking to buy a starter home—and it’s population has been on a consistent rise, with buyers from the Northeast flocking to the state.
Still, as demand grows and prices climb, it’s essential to understand how to qualify for a mortgage in North Carolina, and that begins with examining your salary.
Best and Worst Places in North Carolina for Starter Homes
For those searching for the best cities to buy a starter home, several areas in North Carolina stand out:
- Greensboro – With median home prices typically below $280,000, Greensboro offers a manageable cost of entry along with a growing economy and cultural scene.
- Winston-Salem – Homes in this city hover around $260,000, providing affordability without sacrificing urban amenities.
- Fayetteville – This military-adjacent market offers starter homes often under $240,000, ideal for buyers seeking low costs and stable employment.
On the flip side, some areas in North Carolina are significantly less affordable:
- Charlotte – The median list price in April 2025 was $439,500, making starter homes increasingly scarce for lower-income buyers.
- Raleigh – With median prices at $451,245, buyers need a high income and swift strategy to compete in this booming tech hub.
- Asheville – A popular destination for retirees and second-home buyers, Asheville’s starter homes often exceed $400,000 due to limited inventory and high demand.
Still, Raleigh and Charlotte offer strong appreciation potential. Even with higher prices, these cities may yield solid long-term returns if purchased strategically.
Is Buying a Starter Home in North Carolina Worth It?
North Carolina continues to be one of the more balanced states for first-time buyers. It earned a “B+” on Realtor.com’s home ownership and affordability report card, thanks in part to its growing housing inventory and competitive new construction activity.
In fact, North Carolina issued 6.4% of the nation’s homebuilding permits in 2024, despite having just 3.3% of the U.S. population—a strong indicator of forward-looking housing policy. Its REALTORS® Affordability Score was 0.59—below the best-performing states but still strong enough to suggest decent access to entry-level homes for local earners. With a relatively low new construction premium of 2.6%, new builds are priced competitively against existing homes, giving buyers more leverage and options.
North Carolina also offers robust down payment assistance programs and flexible mortgages for first-time homebuyers. For buyers who follow the right path—including securing pre-approval and budgeting effectively—the market remains accessible.
While North Carolina may not be the most affordable state to live in anymore, it remains a compelling place to start. From midsize cities with strong infrastructure to growing suburban hubs, the state presents a mix of opportunity and lifestyle that makes buying a home for the first time feel more like a smart investment than a financial stretch.
What It Costs To Afford a Starter Home in North Carolina
In 2024, the average starter home price in North Carolina is $314,880. To comfortably afford this home—defined as spending no more than 30% of income on monthly mortgage payments at a 7% interest rate—a household would need to earn at least $75,417 per year.
North Carolina sits in the middle of the pack compared to other Southern states. Florida starter homes demand an $86,353 income, while Georgia is more affordable at $71,697. Nationally, the average income required to buy a starter home is around $70,164, placing North Carolina slightly above average in terms of affordability.
Although prices have risen significantly—up 48% in the past five years—the state remains a practical choice for buyers looking for value in a fast-growing region and those navigating the steps to buying a house.
Carol McDaniel is a dedicated and results-driven professional with 5 years of experience and US News. Known for her strong problem-solving skills and collaborative mindset, Carol has built a reputation for delivering high-impact results across diverse teams and projects.
Throughout her career, she has demonstrated expertise in 2 core skills or areas, e.g., client relations and project coordination, and is passionate about continuous learning and meaningful contribution. Carol thrives in dynamic environments and consistently brings professionalism, adaptability, and a focus on growth to every role she takes on.