Carolinas Apartment Market Holding Up Despite Elevated Supply
Apartment demand has supported rent growth in the Carolinas, despite nation-leading supply volumes. In the past year, the overall existing apartment base of the North Carolina and South Carolina has grown by 3.6%, more than any other region nationwide. And unlike other areas logging big inventory growth rates, the Carolinas managed to hold onto at least some growth in effective asking rents the past year – though that growth was mild at 0.3%. Meanwhile, the two other regions to log inventory growth of 3% or more (Mountains/Desert and Florida) suffered annual price declines. Supporting at least some rent growth in the Carolinas in the past year, apartment demand is holding up well, after recovering from the doldrums of 2022. While demand is notably behind concurrent new supply volumes, the strength of absorption here is what has allowed operators to hold onto at least mild rent growth.
For more information on the state of the Carolinas apartment region, including forecasts, watch the webcast Market Intelligence: Q3 Carolinas Update.