Charlotte Q4 Multifamily Market Report: Cap rates trended higher to close 2022
Highlights:
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- Property fundamentals cooled in Charlotte during the fourth quarter, offsetting some of the gains from the first half of the year. Vacancy climbed and asking rents trended lower.
- Area vacancy rose 70 basis points in the fourth quarter, reaching 6 percent. The rate was up 190 basis points in 2022, following four straight years of improvements.
- Asking rents dropped 2.4 percent in the last three months to $1,570 per month. Despite the recent decline, apartment rents increased by 5.4 percent for the full year.
- Multifamily investors continued to transact in Charlotte during the fourth quarter as deal volume tracked levels from the third quarter. The median sales price through the end of 2022 reached $272,000 per unit, up 18 percent from 2021 levels.
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