Charlotte Sees Double-Digit Rent Growth and Tight Vacancies

July 20, 2022

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Rent growth in Charlotte, NC has modestly outperformed the broader U.S. over the past five years, driven by outsized population, job, and employer growth. Markerr took a deep dive into Charlotte and identified the five neighborhoods with the best rent growth potential. We also looked at demand drivers that we believe will influence rent growth in those areas.

With Strong Demand Side Indicators, Our Forecast Shows Strong Rent Growth Performance

In the past year, Charlotte saw 13.6% rent growth, making it rank 37th out of the top 100 MSAs. Charlotte has outperformed on every demand side indicator over the past five years. Markerr projects Charlotte MSA-level rent growth will continue to outperform the rest of the country over the next year. 

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Continued New Deliveries Help Alleviate the Housing Shortage

Charlotte’s increasing housing supply has helped meet the continued influx of people, jobs, and income flowing into the area. Supply is dispersed across Charlotte, so selecting specific locations within Charlotte is even more important than in typical real estate acquisitions.

Five Charlotte Neighborhoods Are Projected to Have Double-Digit Rent Growth

Markerr’s proprietary rent forecast identified five zip codes in Charlotte that will likely outperform over the next year. Each has above-average rent growth, population growth, job growth, income growth, and a higher concentration of 25-34 year-olds.  

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Top Investments By Zip Code: 28012, 28213, 28212, 28208, 28207

Below are important demand side indicators for the selected zip codes, from Markerr’s Income, Employment and Population datasets. 

Finance and Healthcare Hiring Activity Points to Future Income Growth 

The weighted average of the median salary for the hiring data across Charlotte is $68,500, which is ~43% higher than the current median salary of $48,000. Charlotte’s Total Job Posting as a Percentage of National is 1.2%, which is 12 bps higher than a year ago. Tech and Healthcare jobs in Charlotte have grown in the last 12 months, and Finance jobs migrate South to Charlotte. 

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