Charlotte Multifamily Report – January 2024
Rentals tread water in the Queen City.
Multifamily fundamentals remained promising in Charlotte, despite negative rent performance amid robust deliveries and seasonal trends. On a three-month basis through November, rates contracted 0.6 percent, to $1,581, while national figures declined only 0.2 percent, to $1,713. However, the occupancy rate in stabilized properties stood at 94.1 percent as of October, pointing to solid demand. Nationally, occupancy clocked in at 94.9 percent.
In the 12 months ending in September, the Charlotte employment market expanded by 3.6 percent, well above the 2.4 percent U.S. growth rate. Mirroring the national trend, most positions were added in leisure and hospitality, a sector that accounted for 18,700 jobs and marked a 13.5 percent expansion. Unemployment stood at 3.2 percent in October, 70 basis points below the national figure and 20 basis points above Raleigh’s jobless rate. Only one sector—manufacturing—lost positions (1,900), with some layoffs potentially stemming from technological automation.
A total of 8,238 units were delivered last year through November, already surpassing 2022’s total (6,450 apartments). Meanwhile, the investment market softened substantially, mainly due to high borrowing costs. Charlotte saw only $1.8 billion in multifamily transactions, a significant drop from the same period of the previous year. However, the $234,476 per-unit price remained in line with the $235,207 average of 2021 and 2022.
