After a strong performance in 2021, Charlotte’s rental market entered a period of slower, more sustainable growth. Fueled by an influx of remote workers, its affordable cost of living and solid economy, the metro’s rental sector continued to display strong fundamentals. Rents rose 0.7 percent in the first quarter of 2022, to $1,522. On a year-over-year basis through March, Charlotte rents increased 18.6 percent, surpassing the U.S. rate by 380 basis points.
Charlotte added 44,700 jobs in the 12 months ending in February, for a 3.4 percent uptick in employment. Although known as a finance and banking hub, the metro has been gradually diversifying its economy in the past few years. Most recently, electric vehicle manufacturer Arrival announced it would be building its second U.S. micro factory in West Charlotte, while pharmaceutical giant Eli Lilly is expected to break ground on an 800,000-square foot campus at the former Philip Morris site in Concord later this year. Set to be the second-largest economic investment in Cabarrus County history, the $1 billion plant is expected to create 600 new jobs.
Drawn by the region’s long-term growth prospects, both investors and developers have been busy in the metro. In the first quarter of 2022 alone, $793 million in multifamily assets changed hands and 970 new units were delivered. Going forward, we expect rents to continue to grow, albeit at a softer pace.