Renters in Charlotte are seeing increased rent across the board. In August, data from Real Data showed rental rates were up almost 6 percent from the 2016 rate, and the upward trend is expected to continue well into 2018. The August average was $1,115 a month. Interestingly, these increases are not in line with inflation, and increased employment or pay is not keeping up with the increased rental cost.
As rent cost increases, so does the population growth in Charlotte. New apartment complexes are opening regularly, but demand remains strong as more and more people move to the area to take advantage of its many employment opportunities.
A closer look at the statistics shows that the apartment market is strong in Charlotte. The current vacancy rate remains 5.8 percent, which is down just 0.1 percent from the previous year. Yet while the vacancy rate has stayed relatively stable, the number of apartments available in Charlotte has increased, because new apartment complexes are opening regularly. This means all of the new apartments are finding their vacancies filled quite quickly, so the rate remains stable.
Currently, there are about 12,000 apartments that are in construction and additional 13,000 being proposed. That’s a staggering number of units that are poised to enter the rental marketing in the coming years and months. Yet, if these statistics hold, those new rental units will be rented quickly and the vacancy rate will remain stable.
Rental amounts in Charlotte vary significantly from one apartment community to the next. Those in the Uptown areas command the highest prices, while those to the north and east of Uptown have the lowest prices. Also, the newer the complex is, the more it will charge for rent. If an apartment was just opened, the average rent was $1,471. For those who had been established for between 16 and 30 years, the rent dropped to $1,048. Permanents older than 30 years had an average rent of $873, so this particular difference is significant. Because of the lack of interest and lower rental price, older apartments are being demolished or redeveloped to cater to the market for new, hip living spaces.
For developers and property owners, these statistics indicate the future is bright. Continued increases in pricing and continued demand mean the apartment rental market in Charlotte is the place to position yourself to make money.