The crop of new apartments developers are building across Charlotte hasn’t resulted in a spike in vacant units, data from Axiometrics released Thursday show.
Instead, the vacancy rate for May actually fell slightly compared with a year ago, meaning Charlotte’s apartments are actually more full than they were in 2015. That indicates there’s still plenty of demand for new units: In May, 95.8 percent of Charlotte apartments were occupied, up from 95.4 percent occupied in May 2015.
95.8percentage of Charlotte apartments occupied in May
95.4percentage of Charlotte apartments occupied in May 2015
Axiometrics, a national apartment-monitoring and tracking firm, also found that the average rent is still going up in Charlotte. The rate of increase has slowed, however. In May, the rate of annual effective rent growth in the Charlotte market was 4.6 percent, down from a 5.4 percent annual rate of increase in May 2015.
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“Rents are increasing slowly and steadily, which satisfies owners and investors but doesn’t shock renters,” said Stephanie McCleskey, Axiometrics vice president of research, in a statement. “Continued strong job growth should only increase the demand.”
$1,014Average rent in the Charlotte region in May
$969Average rent in the Charlotte region in May 2015
There are more than 12,300 apartment units under construction in the Charlotte region and another 13,500 planned, according to Charlotte-based tracking firm Real Data.
Nationwide, effective rents increased at an annual rate of 3.7 percent in the second quarter, Axiometrics said. That’s down from 5.1 percent during the second quarter last year. Axiometrics said the supply of new apartments being completed nationwide is starting to moderate rent increases. In the top 50 markets, only Houston saw a rent decline, which Axiometrics attributed to the energy industry’s trouble.
Even though rent increases appear to be slowing, rent is still going up. That’s a trend that’s likely to continue as long as vacancy rates stay low and landlords are able to easily fill Charlotte’s apartments.