Charlotte Multifamily Report – Winter 2019
- Mar 28, 2019
Multifamily continued to be a top-performing sector in Charlotte in 2018. The metro’s long-established financial, energy and logistics businesses continued to thrive, prompting extended demand for multifamily product across asset classes. Above-average employment growth and positive demographic trends have also boosted investment activity in the market. At $2.5 billion in 2018, transaction volume reached a new cycle peak.
The metro added 27,300 jobs in the 12 months ending in November, with professional and business services accounting for more than one-third of new positions. A host of corporate extensions are taking place in the metro. LendingTree, Dimensional Fund Advisors and Honeywell have all announced significant relocations or expansions. North Carolina’s low-tax policy—coupled with its warm weather, strategic location and diversified education options— keeps fueling investments. Furthermore, Millennials see Charlotte as an affordable alternative to larger coastal cities where rents are prohibitive.
Although on an upward trajectory, the average rent of $1,138 as of January was still $282 lower than the U.S. average. Developers continue to build, especially for the upscale segment. More than 14,000 units were under construction as of the first month of 2019, but due to sustained demand, Yardi Matrix expects rents in Charlotte to rise another 2.5 percent this year.