Charlotte Multifamily Market
Second-Largest Absorption Total on Record Not
Quite Enough to Offset Historic Development
Charlotte ranked top five nationally in a key first half metric. The local multifamily sector continues to perform relatively well in relation to the rest of the country. Net absorption during the opening six months of 2023 exceeded the 5,000-unit mark, a threshold that only five other major U.S. markets surpassed. This feat is made even more impressive by the fact that the metros it joined on that list — Dallas-Fort Worth, Houston, New York City, Phoenix and Chicago — have apartment inventories that are at least 175,000 units larger. Apartment demand in Charlotte is replicating that of much bigger cities with more sizable populations. This trend bodes well for the sustained absorption of new deliveries, which is particularly crucial in the near-term as the local active pipeline has swelled to a historic size. As of August 2023, developers were underway on 37,000-plus rentals marketwide, equating to over 15 percent of current inventory.