The Rising Cost of Housing Charlotte

Did You Know?

Did you know it costs an average of $275,000 – $350,000 to build just one apartment unit in Charlotte?
That number doesn’t include the cost of land, permitting delays, or rising interest rates, and it's a key reason why housing affordability remains a top concern in our region.

The Cost of Construction Is Not Just a Developer Problem — It’s a Housing Problem

From lumber and labor to land acquisition and local fees, building multifamily housing in Charlotte has never been more expensive. Material costs have stabilized slightly since pandemic-era highs, but labor shortages and interest rates continue to add time and expense to the development process. Developers are reporting average per-unit construction costs of $275,000 – $350,000, depending on the location, building type, and density.

These rising costs aren’t just slowing private development; they’re also creating barriers for community-aligned, city-supported efforts. In areas like the Beatties Ford Road corridor, where Charlotte has prioritized revitalization and equitable development, some housing and mixed-use projects have faced longer timelines or reduced affordability targets due to increased financing gaps and construction inflation.

This is not about isolated circumstances. It reflects a broader reality: even projects that align with public goals like expanding affordable housing and revitalizing underserved areas can be sidelined when the economics no longer add up.

Without a more supportive and predictable development environment, including tools to help close financing gaps, housing supply will remain limited, and affordability will remain out of reach for too many residents.

The Case for Pro-Housing Policy—A Call to Support Smarter Development Tools

Solving our housing challenges means more than just acknowledging high costs; it requires a coordinated effort by local leaders to remove barriers and unlock housing production. Right now, developers face a tough landscape: tight capital markets, high construction costs, and financing gaps that are especially difficult to bridge on mixed-income or affordable projects.

That’s where local and state policy can and must play a more active role.

GCAA continues to advocate for policies that:

• Expand access to financing tools like gap funding, low-interest loans, and tax incentives for housing production.
• Prioritize public-private partnerships that align city and county investment with housing outcomes.
• Ensure predictability in the development process, from permitting to zoning, to reduce risk and attract more capital to housing.

Lawmakers have an opportunity to make housing more achievable by supporting a development environment that reduces cost pressures and encourages investment in all corners of our community.

More housing means more options, greater affordability, and a more resilient Charlotte. Let’s work together to make it easier, not harder, to build the homes our region needs.

Let’s Work Together on Housing Solutions

At the Greater Charlotte Apartment Association, we believe that sound housing policy starts with good information. We want to be a resource to you as you consider decisions that impact housing supply, affordability, and development across our region. If you'd like to learn more, we would be happy to coordinate meetings with local developers, property managers, and industry experts who can speak directly about the challenges and opportunities on the ground.

Please don’t hesitate to reach out directly:
Keith Kelly, Government Affairs Director
980-378-6410
keith@greatercaa.org

We look forward to working with you to ensure a strong, thriving housing market for all.

Sources:

1. National Multifamily Housing Council (NMHC) & National Association of Home Builders (NAHB)

• Apartment Construction Cost Data (2022–2024)
• Average hard construction costs for multifamily units ranging between $250K–$350K per unit depending on location, structure type, and density.
• nmhc.org | nahb.org

2. Urban Land Institute Charlotte + ULI Terwilliger Center for Housing

• Local market reports cite cost escalation in the Charlotte metro due to materials, labor shortages, and financing hurdles.
• uli.org

3. City of Charlotte – Housing & Neighborhood Services

• Corridors of Opportunity program documentation and updates.
• Local examples of gap-financing needs and mixed-income housing challenges in Beatties Ford Rd corridor.
• charlottenc.gov

4. CBJ / Charlotte Business Journal

• Coverage on rising construction costs, delays in project timelines, and the financial strain on affordable/mixed-income development.
• Example: “Construction Costs Challenge Multifamily Projects in Charlotte,” various reports from 2023–2024.
• bizjournals.com/charlotte

5. Axios Charlotte

• Local housing coverage including development updates, UDO implementation issues, and economic trends affecting the multifamily sector.
• axios.com/local/charlotte

6. Federal Reserve Bank of Richmond – Charlotte Branch

• Reports on the impact of interest rate increases and labor constraints on real estate development in the Southeast, including Charlotte.
• richmondfed.org