Set Competitive Rents Without Losing ROI

After a surge of deliveries early in 2025, Charlotte closed Q3 2025 with 8.2% vacancy and asking rents down ~1.3% year over year, a hallmark of late-cycle supply pressure. Developers had brought 13,600+ units online through September, but absorption remained solid in several submarkets, keeping rents from falling more sharply. Northmarq expects construction to slow in 2026, a shift that usually stabilizes both rents and occupancy.

Citywide, Zillow shows average rent effectively unchanged year over year and up only $7 month over month in November 2025, suggesting the market is settling rather than sliding.

Supply context matters. 2024 set a record for deliveries, and 2025 followed closely behind, with estimates ranging from 10,700 to 17,000 units depending on the source. This glut forced owners to compete on terms almost as much as on price, with national trackers reporting widespread one-month-free concessions in 2025.

As the 2026 pipeline thins, expect concessions to fade first in the strongest submarkets. South End absorbed more than 2,500 units since late 2024, before headline rents began to grow again.

Price to Your Micro-Market (Not the City Average)

Avoid anchoring your decisions to the metro-wide median. South End’s momentum looked nothing like slower-leasing areas in late 2025, and new Class A buildings faced very different pressures than renovated Class B properties. Northmarq’s data showing South End’s outsized absorption underscores that demand is hyper-local.

Every pricing decision should begin with three checkpoints:

1. A realistic comp set of true substitutes (finish level, parking, amenities).
2. Current concessions within that same set.
3. Recent days-to-lease for your property type in your immediate radius.

Face Rent vs. Net Effective Rent

In a high-supply environment, concessions can be the difference between sitting vacant for 45 days and leasing in half the time —but only when used intentionally. In early 2025, about one-third of Charlotte listings offered concessions, while national reporting placed the U.S. average in the low teens.

What truly matters for your NOI is net effective rent (NER), the real revenue after factoring in free weeks or credits. For instance, a $2,000 asking rent with four weeks free nets roughly $1,846 over 12 months. In many cases, advertising $1,895 with only a small incentive widens the applicant pool while preserving nearly the same NER.

As 2026 absorption improves, shift your strategy: reduce concessions first, then raise face rent only once occupancy demonstrates consistent demand.

Renewal First, Vacancy Last

Charlotte’s 2026 strategy starts with protecting renewals. When the average listing is near $1,967 and vacancy remains high, the cheapest month is the one you don’t spend empty. Develop a renewal framework that recovers what you must insure, taxes, and maintenance while maintaining goodwill.

If operating costs rise by $25–$40 per month, a moderate renewal increase paired with clear value (fast maintenance response, filter delivery, smart-lock support) retains good residents and typically beats the total cost of a turn.

Lease-Term Math

With new deliveries slowing in 2026, strategically timed expirations. A 12-month lease only helps if it expires during spring or summer; otherwise, consider 15–18-month terms to reposition renewals into stronger demand periods.

Where deep concessions were necessary in 2025, look to trade incentives for longer terms in 2026. Shorter or smaller concessions on extended leases help stabilize revenue as supply normalizes.

Northmarq’s projection of slowing construction supports a gradual move away from heavy incentive structures.

Single-Family Rentals

Single-family homes and townhomes continue attracting renters who want space, a yard, or access to specific school zones without committing to a purchase.

While Charlotte’s average rent is below the national average, SFRs often lease at a premium to similarly sized apartments. Anchor pricing to SFR comps, not just apartments, and highlight lifestyle advantages like garages, privacy, and pet-friendly policies.

How to Raise Rent in NC

North Carolina prohibits local rent control, leaving no statutory cap on rent increases. The state also does not define a specific notice period for rent hikes. Landlords typically follow the notice required to end a periodic tenancy: 7 days for month-to-month and one month for year-to-year. For fixed-term leases, increases apply only at renewal unless the lease states otherwise.

Best practice, particularly in a competitive market, is 30–60 days’ written notice, giving residents adequate time to plan.

A Simple 10-Day Pricing Sprint You Can Repeat

Start by listing the upper end of your net-effective target. Monitor inquiry velocity and tour conversion for a week; if qualified activity trails your comp set, make a small adjustment or add a time-bound incentive before taking bigger steps.

On day ten, evaluate application quality and days-to-lease. If you’re outperforming the submarket, lock in the rate and remove concessions. If not, recalibrate net effective rent and revisit marketing, photos, and syndication.

What We Can Do For You

Henderson Properties leverages real-time market signals, Zillow rent data, submarket vacancy and absorption, and on-the-ground concession trends so you never have to price in the dark. Late-2025 data pointed to “steady rents, incentives doing the heavy lifting.” As 2026 supply thins, we’ll help shift that strategy toward reduced concessions and firmer pricing, calibrated ZIP by ZIP.

Charlotte enters 2026 at a key turning point, with stable asking rents, high but peaking vacancy, and a cooling construction pipeline. The formula for success is to price to your micro-market, manage to net effective rent, protect renewals, and use lease terms strategically.

Do that consistently, and you’ll capture rising demand without sacrificing months to avoidable vacancy.

If you need help managing your rental property, reach out for a free property management proposal!