Development

Average monthly apartment rent in Charlotte reaches $1,000

The Asbury apartments, under construction at Freedom Drive and Walnut Avenue.
The Asbury apartments, under construction at Freedom Drive and Walnut Avenue. ogaines@charlotteobserver.com

Charlotte’s apartment boom shows no signs of slowing down: The latest data show vacancy rates are falling, despite rapid building, and rents are rising fast.

Apartment tracking firm Real Data’s semiannual report, released this week, shows the record-breaking apartment construction around Charlotte is accelerating. Here are the key numbers:

▪ The average monthly rent in Charlotte is $1,000, up 6.6 percent from $938 in March.

▪ The vacancy rate is 5.7 percent, down from 6.7 percent in March.

▪ Charlotte has 12,334 apartments under construction. An additional 13,503 are planned but haven’t started construction yet.

The numbers are remarkable, considering that in March, when 10,400 apartments were under construction and a similar number planned, that was already a record. The strong rent growth, jumping faster than inflation and wages, shows demand is plentiful and landlords aren’t having any trouble raising rent.

And the falling vacancy rate shows there are plenty of people, so far, to occupy these new apartments. Real Data, which is based in Charlotte, shows 4,769 new apartments have been absorbed by the market over the past year.

Where are all these apartments being built? No surprises there: The southeast-1 submarket, which includes South End and SouthPark, is the most active, with almost 3,000 units under construction. Rent there is averaging $1,306 a month.

Real Data isn’t forecasting the rent growth to slow down, although the company allows that’s a possibility as new supply floods the market.

“As a wave of new supply comes online in the next year, the average vacancy rate could approach 8 percent. Same-unit rents are forecast to grow 3 percent in the next year, but growth could be hindered as new communities compete for renters,” the company wrote in its report.

Here are some other interesting numbers from the report:

▪ Highest average rent: Uptown, at $1,712 ($1.85 per square foot).

▪ Lowest average rent: Northeast-1 submarket, which covers the area north and east of uptown, along I-77, at $666 (78 cents per square foot).

▪ Average rent by bedroom: $904 for a one-bedroom, $1,014 for a two-bedroom and $1,132 for a three-bedroom.

Ely Portillo: 704-358-5041, @ESPortillo

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