August 15, 2023

Charlotte 2Q23 Multifamily Market Insights Report: Rents push higher as economy continues to expand

Highlights:

Property performance metrics continued to strengthen in Charlotte during the second quarter with asking rents trending higher and the vacancy rate dipping. Developers are bringing projects online at an active pace, with nearly 16,100 units slated to deliver this year.
Local vacancy dipped 10 basis points during the second quarter to 6.5%. This marked a modest trend reversal, as vacancy had increased in the prior three quarters. Year over year, the rate has increased by 170 basis points.
Following a strong start to the year, asking rents in Charlotte rose an additional 1.1% during the second quarter, reaching $1,620 per month. Despite the recent advance, current asking rents are essentially unchanged from levels recorded one year ago.
Multifamily investment activity has remained limited through the first half of this year. The median sales price year to date is $232,200 per unit, while cap rates are averaging between 4.75% to 5.25%.