Charlotte Q2 Multifamily Market Insights: Rents and prices post strong gains in 2Q

Highlights:

Image

• A rise in renter demand led to a favorable quarter in the Charlotte multifamily market. Rents posted a rapid increase and vacancies held steady. Healthy operating conditions carried over into the investment market where transaction activity gained momentum and prices surged.
• After trending higher in the first three months of the year, the vacancy rate held steady at 4.8 percent during the second quarter. Year over year, vacancy has increased 80 basis points, but the current figure is below the market’s five-year average rate.
• Asking rents spiked in recent months, rising 6.2 percent from April to June. Rents ended the second quarter at $1,621 per month, 17 percent higher than one year ago.
• Investment activity accelerated during the second quarter, rising more than 50 percent from the first three months of the year. The increase in transactions has supported a sharp rise in prices; the median price approached $300,000 per unit in the second quarter, and year to date, has reached $282,300 per unit. Cap rates have remained low, averaging 3.5 percent.

Read the report