Charlotte Teems With Demand Drivers
Employment growth made the city an attractive target for new and expanding businesses, while supporting long-term multifamily demand. Following last year’s cycle high in deliveries, some 6,800 units are slated for completion in 2017.
By Laura Calugar
Charlotte rent evolution, click to enlarge
Charlotte’s housing market is displaying one of the strongest recoveries among U.S. metros this cycle, with growth attributable to the city’s thriving economy, low cost of living and high quality of life. Among the nation’s top destinations for immigration, Charlotte also boasts steady employment growth, which has made the city an attractive target for new and expanding businesses, while supporting long-term demand for new units.
Increases in population, development and public projects boosted employment in professional and business services, along with trade and construction. The $1.16 billion LYNX Blue Line extension running from uptown to UNC Charlotte and the $150 million Gold Line Streetcar project have significantly contributed to strengthening both of these sectors. Moreover, universities in the area feed a talent pool of highly sought-after young workers for new and expanding tech firms. Fintech (financial technology) is an important source of tech growth in Charlotte, building on the region’s notoriety as a top financial services hub.
Roughly $769 million in assets traded this year through July. Following last year’s cycle high in deliveries, some 6,800 units are slated for completion in 2017, about 2,000 fewer than in 2016. With developers focusing on upscale assets, high demand for working-class units is pushing rents up. However, we expect rent growth to remain steady, keeping appreciation at 2.5 percent in 2017.
