Charlotte Apartment Market Showing Steady and Healthy Growth

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Charlotte Apartment Market Showing Steady and Healthy Growth

Real Data has recently published its biannual market overview for Charlotte, and it found that the average apartment rent in the city has continued to increase, reaching a new high of $1,052 a month. This shows a steady increase over the course of the past year, causing investors to take a closer look at the potential found in Charlotte’s apartment market.

new apartmentContinued Rent Increases Over the Past Year
In March, the first report showed that apartment rent averaged $1,011, which was up over the $1,000 of one year ago. The new $1,052 is up $52 from last year at this time, and 4 percent over the last report in March. This steady and healthy growth shows a steady and healthy rental market.

Interestingly, this rent index is rising faster than other indicators, like mortgage and wage indexes. Over the past five years, Real Data found that Charlotte’s rent averages have increased an astounding 35 percent. That’s a significant increase and good news for potential investors.

Vacancy Rates Low in Spite of Construction Boom
In addition to rent increases, the Charlotte apartment market is seeing a construction boom. A full 10,155 apartment units are currently under construction in the greater Charlotte market, with another 13,442 in the planning stages. This onslaught of available homes would make it seem that vacancy rates would be high, but this is not the case in Charlotte. The expected vacancy rate in 2017 is a healthy 6 to 7 percent, up only slightly from the current rate of 5.9 percent.

Key Factors Driving Demand for Charlotte Apartments
What is causing this demand for apartments that is so strong that 10,000 units under construction will not fill the void? Charlotte’s strong local job market is one of the biggest factors. Jobs cause people to move to an area, and Charlotte has plenty of them. The units being built are also on the luxury end of the spectrum, which helps meet the need for the upper class workforce being drawn to the city. An employment opportunities remain strong in the coming years, this increase in apartment demand is expected to continue, providing a prime market for those investing in Charlotte’s real estate.