Charlotte Multifamily Market Report
Queen City Apartments Benefiting From Demographic Tailwinds;
Investors Target Attractive Returns
Charlotte top destination for apartment renters. The market will benefit again in 2022 from the influx of Northeast transplants as relaxed COVID-19 restrictions and larger apartments help retain a sizable share of the workers that left densely populated areas. Financial sector positions, which were among the easiest to transition to remote work, are prevalent in the area, solidifying the local employment base. For the most part, the banking sector in Charlotte expanded during the downturn whereas traditional banking powerhouses, such as New York, experienced steep losses. Many of these transferred employees are requesting to stay in the area, leading to broad economic health. Household formation is projected to reach 2.5 percent in 2022, more than doubling the national rate. At the same time, apartment vacancy is well below 4 percent, giving operators significant pricing power when setting monthly rents. Class C vacancy is particularly tight, and a lack of development for those renters will keep pressure on rates.