May 25, 2022

Charlotte Q1 Multifamily Market Insights: Sales Activity Ahead of the 2021 Pace

Highlights:

Rents continued to push higher at a rapid pace in the Charlotte multifamily market in the first quarter, with additional gains likely for the remainder of this year. Investor demand remained elevated to start the year, but vacancies did creep higher for the second consecutive quarter.
After sharp declines for the past few years, area vacancy has begun to trend higher. The rate rose 70 basis points in the first quarter, reaching 4.8 percent; year over year, vacancy has ticked up 40 basis points.
Asking rents rose 2.4 percent in the first quarter, reaching $1,526 per month. During the past 12 months, rents in Charlotte have spiked 18 percent.
The momentum in the investment market continued to build after a very active 2021. Sales of multifamily properties in the first quarter were ahead of the pace set at the beginning of last year. Values continued to push higher with the median sales price reaching $260,500 per unit in the first quarter.