Charlotte 1Q23 Multifamily Market Insights: Supply and demand growth elevated to start 2023

Highlights:

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• The first quarter was an active period in Charlotte for both new supply and demand growth, given the region's current housing shortage. Multifamily developers will increase the pace of deliveries this year with 16,500 units scheduled to come online.
• Area vacancy rose 60 basis points in the first quarter to 6.6%. The vacancy rate increased 180 basis points during the past year.
• Asking rents rose 2.1% during the first quarter, after dipping lower in the second half of 2022. Year over year, rents are still posting healthy gains, increasing 5% to $1,603 per month.
• The multifamily investment market in Charlotte slowed during the first quarter. During the first quarter, the median price was $225,000 per unit, while cap rates ranged between 4.5% and 5.5%.

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