Charlotte Multifamily Market Insights: Transaction activity ticks higher, sales prices on the rise

Highlights:

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• Property fundamentals softened slightly in Charlotte during the third quarter despite continued economic growth. Multifamily development remains active in Charlotte with roughly 9,700 units scheduled to come online in 2022, similar to the number of deliveries in the past two years.
• During the third quarter, the vacancy rate rose 50 basis points to 5.3 percent. Year over year, the rate increased 160 basis points.
• Asking rents dipped less than 1 percent in the third quarter, reaching $1,609 per month. This followed several periods of upward momentum. Rents on renewals and trade-outs continue to rise; year over year, average rents are up 10.2 percent.
• The local investment market marched on amid the much publicized rate volatility, with more deals trading in Charlotte than in the previous quarter. The median sales price year to date reached $262,400 per unit, up 20 percent from 2021 levels.

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