April 23, 2026

Asking rents post quarterly increase in the Charlotte multifamily market

Q1 2026

Charlotte multifamily market overview

The heightened supply growth of recent years continues to apply upward pressure on vacancy conditions, despite solid absorption. Employment growth has supported consistent renter demand in Charlotte, with apartments recording net move-ins of approximately 2,300 units during the first quarter. Longer term, demand has been elevated in the South End and Lower South End submarkets. Together, these areas recorded net move-ins of more than 3,800 units during the past 12 months, accounting for 30% of Charlotte’s absorption during that time frame. In recent years, multifamily and commercial development has surged in the South End and Lower South End submarkets, and momentum continues. During the past six months, several large office leases have been signed in LoSo and South End, while restaurant and retail concepts have either opened or announced plans to enter the area.

Total sales in the Charlotte multifamily market declined to start 2026, following already limited activity in the prior year. Sales activity during the first quarter trailed levels recorded in the preceding three months by 50% and was 56% below the same period last year. Among the properties that did change hands, there was a clear preference for new builds. The oldest property that sold during the first three months of the year was completed in 2018. A similar trend was recorded in 2025, but not to the same degree. Last year, 2010s- and 2020s-vintages accounted for a combined 58% of sales. More recently, assets that came online during the elevated supply growth of 2024 have begun to trade. Prior to the fourth quarter of 2025, assets built in 2024 had yet to sell. During the past six months, three 2024-built properties have changed hands.

Looking ahead:

Property fundamentals in the Charlotte multifamily market are forecast to stabilize in the coming quarters as supply growth moderates. Completion totals in 2026 are expected to lag levels recorded in 2025 by 23%, and vacancy is projected to come down slightly. Renter demand should be supported by gains in the local labor market. Employment growth will likely accelerate in the coming quarters, building on the combined 30,000 job additions of the past two years. Further, one of the region’s largest submarkets, University, is poised for improved performance in the coming years. After rapid supply growth in the area in recent years, the development pipeline has fallen sharply to just 800 units. Three years ago, more than 4,000 units were under construction in the area. Fundamentals in the University submarket are expected to begin improving as completions decline.

Multifamily sales activity in Charlotte is expected to accelerate following the lightest quarter for transactions in nearly three years. Activity at the beginning of this year was dominated by new builds, but the transaction mix will likely shift to include some older vintages in the coming quarters. While the pool of assets that will change hands throughout the remainder of the year will likely expand, recently built properties will remain a key component of regional investment activity. More than 28,500 units came online across the Charlotte region in 2024 and 2025, and many of these projects are expected to be made available for acquisition in the coming periods. The LoSo and the South End submarkets should be active; these submarkets accounted for roughly one quarter of supply growth during the past two years while continuing to post some of the strongest demand in the metro.