Queen City’s Economy On the Mend
Following a short-term dip in the second quarter of 2020, Charlotte’s economy is now on the right track to recovery due in part to its affordable lifestyle and attractiveness to companies fleeing high-density gateway cities. This trend has been supporting the multifamily market’s fundamentals, with rents marking the third consecutive quarter of appreciation. Rates rose 0.3% on a trailing three-month basis through March, to $1,251.
Known as a major banking hub, the Queen City continued to add jobs in the financial activities sector (2,100 positions) on a year-over-year basis, despite pandemic-induced turbulence. Moreover, mortgage lender InterContinental Capital intends to expand its presence in Charlotte and add 500 new employees, while California-based financial services firm Robinhood Markets is set to establish an office in Charlotte and create nearly 400 jobs.
Investors continued to chase yields, with secondary markets such as Charlotte remaining an attractive option. Multifamily transaction activity continued to improve, with sales totaling $561 million in the first quarter, significantly above the $336 million recorded during the first three months of 2020. This trend prompted listing platform CommercialSearch to name Charlotte one of the hottest multifamily real estate markets in the U.S. Yardi Matrix expects the average Charlotte rent to rise 3.3% in 2021.
Read the full Matrix Multifamily Charlotte Report-Spring 2021