Charlotte 4Q23 Multifamily Market Insights Report: Green shoots alongside inventory growth into 2024

Highlights:

• Operating conditions in the Charlotte multifamily market softened somewhat during the fourth quarter, as the vacancy rate rose, and rents inched lower. Completions were elevated and the construction pipeline has several projects that are slated to deliver in 2024.
• Area vacancy rose 30 basis points during the fourth quarter to 7.3%. Year over year, vacancy increased by 130 basis points, even with net absorption totals up more than 50% from 2022 levels.
• Asking rents inched lower in the last six months, offsetting solid rent growth in the first half of the year. Area rents dipped 0.9% in the fourth quarter to $1,578 per month. Rents ended 2023 0.5% higher than one year earlier.
• Transaction volume bounced off of earlier lows during the second half of 2023, but total sales for the full year still lagged levels recorded in 2022 by 54%. The median price in 2023 was $229,300 per unit, while cap rates ranged between 5% and 5.5% during the fourth quarter.

Read the report, or engage with our Charlotte office to learn more.