Marcus & Millichap

Charlotte Multifamily Investment Forecast

2019 Outlook

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Robust Population Growth Spurs Leasing Activity; Vacancy Tightens as Deliveries Slow in Charlotte

Influx of residents bolsters rental housing demand. The metro’s addition of 52,000 new residents this year will result in household growth that doubles the national pace. Many of these households will be headed by millennials, the age group most likely to rent. Robust demand will also come from fewer tenants being able to transition to homeownership due to a lack of entry-level homes for sale amid rising interest rates and values. Even as the need for apartments expands, deliveries will ease from last year’s pace, tightening vacancy to its lowest point of this cycle, supporting rent growth. Although nearly every submarket will receive new inventory in 2019, deliveries will be concentrated in the desired neighborhoods around the downtown core, in North Charlotte and near UNC Charlotte. Each of these areas will receive more than 1,300 rentals this year. In the Uptown area near downtown, the first phase of the 19-acre Charlotte Gateway Station District is underway, providing a new multimodal transit hub that will host Amtrak, buses and the streetcar upon completion in 2022. The facility will likely spur additional mixed-use development that is expected to include residential units on surrounding blocks.

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