Rapid Apartment Development Continues in Charlotte
Charlotte has been a high-development market for the past four years, and expansion is expected to continue in the near term, as scheduled deliveries remain elevated. At the end of 2nd quarter 2020, Charlotte had more than 14,000 units under construction, a volume set to increase the existing stock by 7.3%. Among the nation’s 50 largest apartment markets, only Nashville had a higher construction inventory ratio (8.2%). Just in the coming year, Charlotte’s apartment stock is set to grow by 5.4% with the addition of about 10,400 units. That would be the fastest expansion pace among the nation’s largest markets, though the impact of COVID-19 will likely cause that number to taper off as supply and construction delays occur. Big construction volumes in Charlotte come on the heels of already-elevated deliveries. In the year-ending 2nd quarter 2020, a total of 6,872 units completed, growing net inventory 3.5%. That expansion rate tied the growth seen in Dallas and Salt Lake City, trailing only Austin among the nation’s top 50 markets during that period. Despite the elevated completion volumes, solid demand has allowed Charlotte to remain essentially full, boding well for the developments still in the pipeline.