Similar to other Southeastern markets, Charlotte experienced tremendous growth during the pandemic. Its affordable cost of living and job availability attracted more residents to the area. From 2021 to 2022, 15,000 more people moved in than moved out in Charlotte, the nation’s fifth largest numeric increase during that period, according to the U.S. Census Bureau.
Positive net in-migration benefitted the metro’s apartment market. Since the start of the pandemic, the metro’s inventory increased 15 percent and average effective rent spiked 34.5 percent from 1Q20 to 2Q23. This growth was underpinned by a strong economy flag shipped by major employers headquartered in Charlotte, such as Bank of America and Atrium Health.
Encouraged by Charlotte’s business friendly atmosphere, companies are continuing to expand and invest in the economy. Fiber optic company, CommScope recently announced that they would be investing $60 million and adding 250 jobs for their manufacturing expansion in the Charlotte region.
Looking ahead, Charlotte’s multifamily performance is projected to keep flourishing. By the end of 2023, 16,079 units are set to come online. Though construction is underway throughout nearly all the submarkets, UNC Charlotte has been a major hotspot for multifamily developers, with 3,657 total units forecast to be added by year-end. The submarket is home to the University of North Carolina Charlotte, which boasted a student population of 29,551 during the 2022 Fall semester. With 76 percent of students living off-campus, demand for housing is high and consistent in the area.
Year-end demand is among the highest in the nation, with 14,787 expected net move-ins in 2023. Though absorption is projected to be positive throughout all the submarkets, the Concord/Kannapolis/Salisbury submarket’s demand is forecast to outpace deliveries, with 1,073 units set to be absorbed and only 1,000 scheduled to come online.
– Berkadia Research