average rent
average occupancy rate
ytd sales volume
YoY rent change
yoy occupancy change
individual transactions
QUARTERLY DEMAND
YTD: 8,380
QUARTERLY COMPLETIONS
YTD: 10,285
Average Monthly Mortgage Payment
Average Monthly Rent
The Charlotte apartment market experienced a slight decline in occupancy during Q3 2023, settling at 93.7%—a year-on-year decrease of 120 basis points. When analyzed by class, Class C establishments led the way with the highest occupancy rate, recorded at 94.1%. Close on their heels were Class A and Class B units, registering occupancy rates of 93.8% and 93.4%, respectively. On a submarket level, Gaston County outperformed, recording an occupancy rate of 95.0%, while South Charlotte trailed with a rate of 92.9%. Looking forward, occupancy rates in the Charlotte area are projected to hover around the 94% threshold in the forthcoming year, signaling a stable market trend.
During Q2 2023, monthly rents in the Charlotte apartment market experienced a modest decline of 1.3% compared to the previous year, settling at an average of $1,602. Traditionally, Class B units have been the key drivers of rent fluctuations. However, Q3 2023 saw rent adjustments affecting all apartment categories, attributed to shifting market dynamics. Specifically, Class A units recorded a 1.6% decrease, Class B units saw a 1.2% dip, and Class C units aligned with the broader market trend, also declining by 1.3%. At the submarket level, East Charlotte emerged as an exception, registering a 2.2% annual increase in rents. Conversely, South Charlotte and the Mooresville/Statesville area lagged, posting declines of 3.7% and 3.3%, respectively. Looking ahead, projections for the Charlotte region indicate that rental growth is expected to stabilize around 2.1% by the end of 2024.
| Submarket | Average Occupancy | Annual Occupancy Change | Average Monthly Rent | Annual Rent Change |
|---|---|---|---|---|
| Uptown/South End | 93.6% | -0.9% | $2,098 | -2.9% |
| Myers Park | 94.1% | -0.8% | $1,819 | 0.6% |
| Southwest Charlotte | 93.5% | -1.5% | $1,567 | -1.9% |
| North Charlotte | 93.2% | -1.0% | $1,549 | 0.2% |
| UNC Charlotte | 93.4% | 0.2% | $1,503 | -1.4% |
| East Charlotte | 94.1% | -1.7% | $1,402 | 2.2% |
| Far East Charlotte/Mint Hill | 93.8% | -1.2% | $1,324 | 1.2% |
| Matthews/Southeast Charlotte | 93.9% | -1.6% | $1,584 | 0.3% |
| South Charlotte | 92.9% | -1.3% | $1,501 | -3.7% |
| Ballantyne | 94.1% | -0.5% | $1,827 | -1.7% |
| Rock Hill/Fort Mill | 93.7% | -2.3% | $1,546 | -2.6% |
| Gaston County | 95.0% | -2.0% | $1,412 | 0.5% |
| Huntersville/Cornelius | 93.6% | -2.2% | $1,659 | -2.2% |
| Mooresville/Statesville | 93.8% | -0.5% | $1,450 | -3.3% |
| Concord/Kannapolis/Salisbury | 93.8% | -1.7% | $1,467 | -1.9% |
| Charlotte-Concord-Gastonia, NC-SC | 93.7% | -1.2% | $1,602 | -1.3% |
Units Under Construction
Units UC Delivering In the Next 4 Quarters
By 3Q 2023, the apartment market in Charlotte, NC experienced a deceleration in trading activity. MSCI Real Capital Analytics data reveals that 19 single-asset conventional multifamily properties exchanged hands, translating to a total transaction volume of $905.5 million. This represents a sharp drop of 73% compared to the same timeframe in the prior year. However, there’s a silver lining: the average unit transaction price displayed an uptick of 13.2%, landing at $272,500, surpassing average prices in the broader southern region. While transaction volume has waned compared to past years, Charlotte’s robust economic underpinnings continue to make it a magnet for investors. The metro’s market prospects shine brightly, and its inherent growth capabilities are set to maintain investor appeal in the foreseeable future.
* Trailing 4Q average PPU
* Preliminary Data from RCA – Individual transaction $2.5M +
In August 2023, Charlotte, NC showcased an impressive employment trajectory, adding a remarkable 49,300 jobs over the year—a significant 3.7% surge from August 2022. This positive trend drove the unemployment rate down by 0.6 percentage points year-on-year, settling at a commendable 3.3%, which undercuts the national average of 3.9%. Sector-wise, leisure and hospitality emerged as a powerhouse, adding a stellar 18,900 roles, translating to a 13.1% growth. Not far behind, the Professional and Business Services sector expanded by 2.3%, welcoming 5,200 new job opportunities. These upbeat figures underscore Charlotte’s dynamic economic vitality and promising employment landscape.
August Annual Jobs Created
Augsut 23 Employment growth
August 23 Unemployment rate
3.9% us August rate
| Sector | Change from August 2022 to August 2023 | Percent Change |
|---|---|---|
| Leisure and hospitality | 18,900 | 13.1% |
| Professional and business services | 5,200 | 2.3% |
| Government | 5,200 | 3.4% |
| Trade, transportation, and utilities | 4,300 | 1.6% |
| Financial activities | 4,100 | 3.4% |
| Education and health services | 2,900 | 6.3% |
| Mining, logging, and construction | 2,400 | 3.2% |
| Other services | 1,500 | 3.1% |
| Information | 400 | 1.5% |
| Manufacturing | (2,200) | -2.0% |
When comparing the cost of living between Nashville, TN, and Charlotte, NC, key differences surface that may inform residential and investment decisions. With a Cost-of-Living index of 97.5, Charlotte generally offers a more affordable standard of living relative to the national average. While Charlotte slightly surpasses Nashville in transportation costs and is notably more expensive in healthcare—with a 2.6% increase—housing and utilities in Charlotte provide substantial savings, being 17.8% and 4.6% lower than in Nashville, respectively. These factors make Charlotte an increasingly appealing option for young professionals seeking a cost-effective, yet dynamic, environment in the Southeast.
97.5
$2,998
88.4
90.1
93.5
$403,100
As of Q3 2023, Charlotte’s multifamily market was particularly vibrant in terms of development, boasting 35,192 apartment units under construction. This volume marks a peak in multifamily development for the Charlotte area, yet demand is anticipated to align closely with the increased supply projected for the next four quarters. This construction boom, when viewed alongside a favorable demand forecast, robust economic indicators, and Charlotte’s growing allure for transplants from the Northeast, establishes a solid groundwork for market stability. Given these conditions, rent growth is projected to shift into positive territory in 2024 and is expected to align with historical performance by 2025. This outlook underscores a balanced market where robust demand effectively corresponds with the abundant supply.
