September 13, 2021

Charlotte Q2 Multifamily Market Report: Momentum Builds Heading into the Second Half

Highlights:

An active leasing environment improved property performance in the Charlotte multifamily market during the first half of this year. Vacancies have tightened, and rents are on the rise. Demand is forecast to remain elevated as the local labor market continues to add workers.
Vacancy in local multifamily properties fell 40 basis points during the second quarter, reaching 4 percent. The rate is down 130 basis points year over year.
Driven by an accelerating pace of absorption, asking rents spiked 7 percent in the second quarter, reaching $1,385 per month. In the past year, rents have advanced 12.1 percent.
New apartment properties are coming online, but the pace of supply growth is not keeping up with absorption. Deliveries totaled more than 3,700 units in the first half compared to more than 5,700 units of absorption.
Sales of apartment properties picked up in the second quarter, with velocity spiking more than 40 percent. The median price in sales year to date reached $155,400 per unit, while cap rates have averaged 3.8 percent.