ECON 101: DEMAND HIGH, SUPPLY LOW
Fueled by a continued weakness in the for-sale housing market, demand for apartments in the Charlotte metro area is at an all-time high, market tracker Real Data?s Engle Addington tells us. In the past year, more than 7,000 apartment units were absorbed. Thanks to such strong demand, the average vacancy rate is now 9%. A sector of northeast Charlotte is particularly tight, holding the lowest vacancy rate in the region at 4.7%. While demand is at an all-time high, Engle says, only 524 units are now under construction in the entire metro area. In the past six months, only 558 units were completed. Current rents are holding at an average rate of $744 per month, but Engle says that's about to change. Rents are expected to rise up to 4% in the coming year. Vacancy rates, meanwhile, will approach 7%, not seen in the Charlotte area since before the Great Recession.