Charlotte Q4 Multifamily Market Report: Sales Activity Spikes Amid Elevated Buyer Demand
Highlights:
- The Charlotte market closed out the year in growth mode as employers added jobs and developers brought more units online. The outlook for 2022 calls for continuation of most of the trends that prevailed in the prior year.
- Vacancy ticked higher at the end of 2021, after reaching its lowest point of the past decade in the third quarter. Despite the recent rise, the local vacancy rate still ended the year at 4.1 percent, 60 basis points lower than at the end of 2020.
- Multifamily asking rents in Charlotte spiked 19.3 percent in 2021, ending the year at $1,490 per month. Rents gained 2.1 percent in the fourth quarter.
- Sales of apartment properties continued to rise during the fourth quarter. Sales velocity rose more than 50 percent from 2020 to 2021. With activity picking up, prices increased. The median price spiked over 23 percent in 2021, reaching approximately $218,000 per unit. Cap rates compressed to 3.5 percent in the fourth quarter, down 120 basis points year over year.
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