North Carolina Dominates Rent Growth Leaderboard
No state had more markets land in the top 10 for annual rent growth in May than North Carolina. All three major North Carolina markets – Charlotte, Raleigh/Durham and Greensboro/Winston-Salem – saw rents for new apartment leases rise 4% to 5% in the past year. Raleigh/Durham ranked #4 with rent growth of 4.9%, while Greensboro/Winston-Salem and Charlotte ranked #9 and #10 with increases of 4.4% to 4.3%, respectively. The other state to have multiple markets in the top 10 was California, where the late-recovery Sacramento and Riverside/San Bernardino saw rents rise 4.5% and 4.9%. The three North Carolina markets have been outperforming the national average for rent growth since at least November 2018 – and Greensboro long before that. These markets share a couple key characteristics. For one, they have strong and increasing occupancy thanks to demand outpacing supply. Charlotte’s occupancy stands at 95.7%, while Greensboro’s stands at 96.1% and Raleigh/Durham’s stands at 95.5%. Despite vast construction in Raleigh/Durham and Charlotte, demand in both markets has kept pace. For another thing, they’re all still affordable compared to the U.S. norm of $1,394. Charlotte rents average $1,150, Raleigh/Durham’s average $1,154 and Greensboro/Winston-Salem brings up the rear with $851.