Charlotte, North Carolina

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Market Summary
Apartment developers are planning a record number of new apartments throughout the region at 12,922 units. More than 2,000 units are planned along the South Corridor’s light rail line, which is scheduled to open this fall. There are currently 3,013 units under construction, with the majority of these units located in southwest Charlotte along South Tryon Street. The pace of new completions remains slow with only 592 units completed over the past six months. However, many of the communities currently under construction expect to deliver the majority of their units this spring and summer.

The Charlotte apartment market has historically seen weaker demand and increasing vacancies through the winter months. Over the past six months demand weakened with negative (-13) units absorbed, resulting in an increased vacancy rate at 7.3% currently. Union County currently holds the lowest vacancy rate in the metro area at 4.3%.

The average rental rate is now $712. Same-store rents have increased 4.6% or $31.51 over the past twelve months. One bedroom rents average $627 per month. Two bedroom rents
are $731 and three bedroom rents are $875. Based on the current development pipeline, the vacancy rate should hold between 6% and 7% in the next twelve months. Average rental rates should continue to increase as vacancies remain relatively low.

Market Data Information Source: © March-07 Real Data Aptindex