Employment growth surges ahead of national average in the Charlotte multifamily market

Charlotte multifamily market overview

Property fundamentals in the Charlotte multifamily market softened during the second half of the year as supply growth remained elevated. Vacancy continues to trend upward, but the pace of increases has leveled off. The rate rose by 30 basis points during the past year after increasing by 80 basis points in 2024. Robust demand kept vacancy increases in check. Apartments posted net move-ins for more than 14,500 units in 2025, outpacing last year’s peak levels by 15%. Absorption was concentrated in North Charlotte, South End, and West Charlotte. These three areas combined for more than half of the net move-ins during the past year, despite representing only 25% of the market’s inventory. Renter demand is supported by one of the strongest employment markets in the country. The professional and business services sector rebounded in 2025, elevating overall regional employment conditions.

Total sales in the Charlotte multifamily investment market declined from 2024 to 2025. Pricing rose in recent quarters after declining in 2024. The median sale price was $210,700 per unit in 2025, up 19% from one year ago. Despite the increase, pricing lagged levels recorded from 2021 to 2023. Investors targeted 2020s and 1980s vintage assets in 2025, as properties built in the 2020s made up 42% of sales during the past year, while 1980s builds accounted for 27%. Many of the new properties that sold have been operational for a few years, with builds from 2020, 2021, and 2023 making up nearly every transaction for 2020s-vinatges. Almost none of the inventory that came online in 2024 and 2025 has changed hands to this point. Cap rates averaged approximately 5.0% throughout 2025, down slightly from levels recorded in 2024.

Looking ahead

Operating conditions in the Charlotte multifamily market are expected to stabilize in 2026 as supply growth tapers. Projects totaling approximately 13,000 units are slated for completion, down 19% from last year. Fewer new units will likely keep the vacancy rate in the mid-8% range after rates rose in each of the past four years. Continued demand will also play a large role in vacancy stabilization. Absorption rates in 2026 may lag levels recorded in 2025, but strong labor conditions should ensure that net move-ins keep pace with the coming deliveries. Demand varied throughout 2025, with a few areas accounting for most of the absorption. Net move-ins in the region’s largest submarket, South Charlotte, lagged in 2025. Given construction activity, average occupancy in this area may remain flat in the near term, but as development slows, vacancy should ultimately trend lower.

The pace of multifamily sales in the Charlotte investment market is expected to accelerate in the coming year, and sales in 2026 should exceed the light levels recorded in 2025. The transaction mix may shift further towards 2020s vintages in the coming periods as these properties stabilize. Investors in Charlotte have been keen on new builds in recent quarters, but much of the supply growth of the past two years has yet to trade. Assuming trends recorded in 2025 carry over into the coming years, some of the more than 28,000 units that were delivered in 2024 and 2025 should begin to change hands. Activity in North Charlotte should pick up after being light in recent quarters. North Charlotte is recording the highest levels of construction in the region. As the pipeline begins to deplete in this submarket and fundamentals adjust, this could emerge as more prevalent area of investor interest.

Learn more about the Charlotte multifamily market

Contact our Charlotte office for more information or download one of the reports below from our Institutional Investment Sales or Private Capital teams.