average rent
average occupancy rate
ytd sales volume
YoY rent change
yoy occupancy change
individual transactions
QUARTERLY DEMAND
YTD: 5,444
QUARTERLY COMPLETIONS
YTD: 6,854
Average Monthly Mortgage Payment
Average Monthly Rent
In the 2nd quarter of 2023, the Charlotte apartment market experienced a decline in occupancy, settling at 93.8%—a year-over-year decrease of 230 basis points. Within the product classes, Class C properties led with the tightest occupancy at 94.3%, closely followed by Class A and Class B units at 93.6% and 93.7%, respectively. In terms of submarkets, Rock Hill/Fort Mill, Concord/Kannapolis/Salisbury, and Gaston County emerged with the strongest occupancy rates, each achieving 94.9%. Conversely, South Charlotte and UNC Charlotte posted the weakest rates at 92.8% and 92.6%. As the market looks ahead, occupancy rates in Charlotte are anticipated to stabilize around 94% in the coming year, symbolizing a steady outlook for the industry.
In the 2nd quarter of 2023, rents in the Charlotte-Concord-Gastonia, NC-SC metro rose by 2.5% year-over-year to $1,600 per month. This increase falls below the market’s five-year average of 7.1%. In recent years, rent performance has been predominantly driven by Class B units. However, a shift occurred in the 2nd quarter of 2023, with Class A units taking the lead, showing a 3.8% annual rent increase. This is compared to Class B units, which experienced a 1.9% change, and Class C units, which saw a 2.8% change. Among submarkets, East Charlotte and Myers Park stood out with the most substantial annual rent increases in the quarter, at 5.1% and 4.9%, respectively. Conversely, the weakest performances were found in UNC Charlotte, at -0.2%, and South Charlotte, at 0.2%. Moving forward, the rent increases in the Charlotte market are anticipated to remain around the current level of 2.5% through 2024.
| Submarket | Average Occupancy | Annual Occupancy Change | Average Monthly Rent | Annual Rent Change |
|---|---|---|---|---|
| Ballantyne | 94.0% | -2.2% | $1,808 | 2.0% |
| Concord/Kannapolis/Salisbury | 94.9% | -2.0% | $1,455 | 0.7% |
| East Charlotte | 93.9% | -2.7% | $1,401 | 5.1% |
| Far East Charlotte/Mint Hill | 93.4% | -1.8% | $1,294 | 3.9% |
| Gaston County | 94.9% | -2.3% | $1,401 | 3.2% |
| Huntersville/Cornelius | 93.8% | -3.0% | $1,657 | 2.5% |
| Matthews/Southeast Charlotte | 93.9% | -1.8% | $1,592 | 3.8% |
| Mooresville/Statesville | 93.7% | -2.3% | $1,461 | 3.6% |
| Myers Park | 94.6% | -1.7% | $1,836 | 4.9% |
| North Charlotte | 93.7% | -1.7% | $1,542 | 2.9% |
| Rock Hill/Fort Mill | 94.9% | -1.9% | $1,566 | 2.5% |
| South Charlotte | 92.8% | -2.6% | $1,508 | 0.2% |
| Southwest Charlotte | 93.7% | -2.7% | $1,557 | 2.4% |
| UNC Charlotte | 92.6% | -2.6% | $1,496 | -0.2% |
| Uptown/South End | 93.5% | -2.4% | $2,101 | 2.5% |
| Charlotte-Concord-Gastonia, NC-SC | 93.8% | -2.3% | $1,600 | 2.5% |
Units Under Construction
Units UC Delivering In the Next 4 Quarters
In the first half of 2023, the Charlotte, NC apartment market witnessed a significant slowdown in transaction activity. According to data from MSCI Real Capital Analytics, only 11 properties were traded, resulting in a total sales volume of nearly $500 million. This marks a substantial 75.5% decrease compared to the same period in the previous year. On the upside, the average price per unit in these transactions exhibited a noteworthy 14.6% increase, reaching $270,900, thus exceeding the regional norm for the southern region. Despite the pronounced decline in transaction levels relative to previous years, Charlotte’s strong economic foundation continues to render it an attractive destination for investors. The future outlook for the market remains promising, and its resilience and growth potential are poised to sustain ongoing investor interest.
* Trailing 4Q average PPU
* Preliminary Data from RCA – Individual transaction $2.5M +
In May 2023, the Charlotte, NC metro witnessed remarkable job growth, adding 42,500 jobs compared to May 2022, reflecting a substantial 3.2% increase in employment. Consequently, the unemployment rate decreased by 0.1 percentage point compared to the previous year, reaching 3.2%, which is below the national average of 3.4%. Among the sectors, the leisure and hospitality industry experienced the most significant job gains, with an impressive addition of 15,100 positions, representing a substantial 10.7% expansion. Following closely, the education and health services sector also saw noteworthy growth with a 6.3% expansion and the addition of 8,600 jobs. These positive indicators highlight the region’s strong economic momentum and employment prospects.
May Annual Jobs Created
May 23 Employment growth
May 23 Unemployment rate
3.4% us may rate
| Sector | Change from May 2022 to May 2023 | Percent Change |
|---|---|---|
| Leisure and hospitality | 15,100 | 10.7% |
| Education and health services | 8,600 | 6.3% |
| Professional and business services | 5,900 | 2.6% |
| Trade, transportation, and utilities | 3,900 | 1.4% |
| Other services | 2,600 | 5.5% |
| Mining, logging, and construction | 2,500 | 3.4% |
| Financial activities | 2,100 | 1.8% |
| Government | 1,200 | 0.7% |
| Information | 800 | 3.1% |
| Manufacturing | (200) | -0.2% |
As of the second quarter of 2023, Charlotte’s real estate market has a substantial 33,759 apartment units under construction, yet the anticipated absorption of this new influx is promising. The largest concentration of new inventory, totaling 8,400 units, is set to be completed by Q2 2024 in major demand hotspots. This construction growth, paired with the market’s positive demand patterns, robust economic growth, and favorable in-migration trends, supports solid market fundamentals. Consequently, rent growth and occupancy rates are expected to stabilize around current levels, reflecting the robust demand that aligns with the abundant supply.
