Wednesday, March 19, 2014

Apartment construction surges to all-time high in Charlotte

The newest report by multifamily research firm Real Data shows apartment construction has surged to an all-time high in Charlotte.

The new report, tracking activity in Charlotte's multifamily market over the past six months, shows 10,067 units under construction. Most of the new units are Class A properties in uptown and in neighborhoods such as the South End, SouthPark, NoDa and Elizabeth. Another 11,003 units have been proposed. Real Data's Charles Dalton says this is the most apartment development Charlotte has ever seen. The previous high came during the construction boom of 2000, when just under 8,000 units were under construction.

Officials broke ground last week for The Mint, one of the latest apartment complexes to begin construction uptown.
The city over the past five years has averaged 4,479 units under construction, so the latest figures show the multifamily development market has yet to cool down, despite concerns in some quarters that it might be getting overbuilt. The report says that as the newest units hit the market in the next year, vacancy rates that currently sit at 6.2 percent will rise to as much as 8 percent.

The average rent in Charlotte stands at $874 per month, with one-bedroom units going for about $781, two bedrooms going for $891 and three bedrooms renting for about $1029. Same-store rents are expected to grow between 2 percent to 3 percent during the next year, but Real Data says increased competition for renters could hinder that.

9 comments:

James Edgar said...

There SHOULD be concern that it's getting overbuilt. There are simply not enough billionaires available to rent these units - and most of these umits are priced where only billionaires can afford them.

J Harris said...

Are hard hats really necessary to scoop one shovel of dirt before heading back to the office? What a charade.

Anonymous said...

BUBBLE BUBBLE BUBBLE BUBBLE BUBBLE BUBBLE BUBBLE BUBBLE BUBBLE BUBBLE BUBBLE BUBBLE BUBBLE BUBBLE BUBBLE BUBBLE BUBBLE BUBBLE BUBBLE BUBBLE

Time for the banks and the builders to steal another trillion dollars from Joe Average.

Anonymous said...

The dismal Obama economy has people RENTING instead of buying.... everywhere, not just Charlotte... and yes in a few years if we ever get out of this mess there will be too many apts as people start buying again.

Infowars35 said...

Agenda 21, it's all by design, tank the economy and reduce living standards/space.

Anonymous said...

I suppose James Edgar is totally in favor of the city spending 35 million in taxpayer dollars to remodel the bureaucrats' offices. If the market won't bear the rent, then the owners won't be able to charge it. The private sector works that way. Too bad the public sector does not.

Anonymous said...

@James Edgar
"There are simply not enough billionaires available to rent these units"

"two bedrooms going for $891" Is hardly a billionaire prerequisite

Anonymous said...

I spent the past weekend here looking over the city and several aparment opportunities. I'm looking to relocate for business and was pleasently suprised by the city growth, variety of apartment styles, and locations I was glad to see there were more than 3 options of places to live, and no, I dont want to buy yet as I need to spend some time checking the city out once I am there.

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