A Market in Motion · Understanding Today’s Rental Challenges
Charlotte’s multifamily housing market is entering a transitional phase following an unprecedented period of new construction. In 2024 and 2025, developers delivered nearly 18,000 new apartment homes, expanding housing choice and helping relieve pressure that had built up during years of limited supply.
As expected, this increase in supply has led to short-term market adjustments:
- Occupancy softened from an ultra-tight 97 percent to approximately 94–95 percent
- Rents declined modestly, by about 1 percent year over year, as property owners offered concessions
- Lease-up periods lengthened, particularly in submarkets with a high concentration of new deliveries
These shifts are sometimes characterized as market weaknesses, but they more accurately reflect supply catching up with demand, a necessary and healthy correction following prolonged population growth.
Encouragingly, signs of stabilization are already emerging. In Q2 2025, absorption outpaced new supply for the first time in three years, indicating that demand is beginning to realign with available housing. With continued in-migration to the Charlotte region, occupancy is expected to stabilize in the mid-90 percent range, with modest rent growth likely returning in 2026.
This moment highlights an important policy takeaway: temporary market softness is not a failure; it is how affordability pressures are eased over time. Consistent and predictable housing production remains essential to long-term stability.
Reference
Henderson Properties. (2025, September). Charlotte Real Estate Outlook: Q4 2025 and Q1 2026.
https://www.hendersonproperties.com/2025/09/charlotte-real-estate-news/