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.