Research 5/ 13/ 2021

Charlotte Q1 Multifamily Market Report: Rents Rise, Vacancy Drops to Start 2021

Highlights:

Charlotte Multifamily market report snapshot for Q1 2021
  • Property fundamentals in the Charlotte multifamily market posted healthy improvement during the first quarter. A modest decline in the pace of new construction allowed vacancies to tighten and rents to surge to start the year. Further improvement is likely as economic growth accelerates in the coming quarters.
  • Vacancy in Charlotte fell 50 basis points in the first quarter, retreating to 8 percent. The rate has inched up 10 basis points year over year.
    Rent growth accelerated to start 2021. Asking rents rose 3.5 percent during the first quarter, reaching $1,293 per month. Rents are up 5.5 percent from one year ago.
  • Multifamily developers have remained active in Charlotte in recent years. The pace of deliveries slowed in the first quarter, but there are still nearly 12,000 units currently under construction.
  • Sales of apartment properties in the first quarter were ahead of the pace established at the beginning of last year. The median price during the first quarter was $148,100 per unit, while cap rates averaged 5.1 percent.

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