CHARLOTTE, N.C. (QUEEN CITY NEWS) — Fears that Charlotte’s supply of housing available may not be keeping up with its population growth may now be waning, according to a new study on apartment construction.
Headlines involving Charlotte’s high-demand real estate market made headlines in 2021 and 2022, with the population growing so fast that both homes and apartments were going so fast that there were fears that some of that housing would simply run out.
“You walked in a house,” recalled Abby Bjelac with the Matt Stone Team. “Well, you didn’t walk; you sprinted through, and you got your offer submitted, and you put everything up front to make sure your client had the best chance of getting it.”
Bjelac acknowledged now, though, things are starting to ease up, noting the once-aggressive market for homes is becoming somewhat more friendly — even for new-home construction in the city.
After sharp growth in median home prices from the middle of 2020 through 2022, they have mostly leveled out, with only a 6 percent year-over-year jump in July for Charlotte and Mecklenburg County.
“The turnaround times are coming down because the supply chain issues during the pandemic,” said Bjelac. “It kind of bottlenecked everything.”
The data and research were released by RentCafe and sister company Yardi Matrix, which showed that Charlotte now ranks 11th in the country for new apartment construction.
This may be necessary with the current population growth; roughly 113 people are moving to Charlotte daily.
“You’re talking about 14,000 units that are coming on board this year, over 14,000 that are coming on board next year,” said Doug Ressler with Yardi Matrix. “The year after that, it’s going to be 11,000.”
Ressler noted that the city is now having “unprecedented supply growth.” The trend may likely result in lower rental prices for apartments across the city. According to RentCafe, the average rent was $1,670 in July based on the average 943-square-foot unit.
The research also provides insight into the city’s real estate market, showing potential homeowners having better luck than in 2022.