Charlotte Multifamily Report – Summer 2019
Despite a strong wave of deliveries over the past five years, the metro's rents increased by 3.4 percent year-over-year, well above the national average.
Charlotte rent evolution, click to enlarge
Charlotte’s strong business climate, substantial demographic expansion and attractive employment opportunities have continued to boost housing demand across the metro. With rents increasing by 3.4 percent year-over-year through April, growth is still above the national average, despite inflating deliveries over the past five years.
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The metro gained 29,200 jobs in the 12 months ending in March, a 2.3 percent increase, well above the 1.6 percent U.S rate. Professional and business services and trade, transportation and utilities accounted for nearly half of the new jobs. Several key infrastructure projects are underway: The first phase of a new multimodal transit hub is advancing in Uptown, with the facility likely to stimulate additional mixed-use development nearby. Additionally, Charlotte International Airport’s $2.5 billion renovation entered a new phase at the beginning of 2019. In contrast, the government sector lost 2,000 jobs. The North Carolina Department of Public Instruction was one of the most severely affected by the state’s budget cuts last year.
Charlotte sales volume and number of properties sold, click to enlarge
Multifamily investment stayed strong in Charlotte at the start of 2019, following 2018’s cycle-high transaction volume of $2.5 billion. With 13,000 units underway, stock should expand further, alleviating rental demand. Yardi Matrix expects rents to rise 2.4 percent in 2019.
