Despite Development Taking A 'Breather,' Charlotte's Multifamily And BTR Pipeline Looks Optimistic

While the construction pipeline in Charlotte has encountered some hurdles, with vacancy remaining high and deals slowing, there’s still a positive outlook for the multifamily and build-to-rent markets. 

A growing population, a robust job market and increased demand for rentals have investors gaining more confidence in Charlotte’s strong fundamentals.

NFP, an insurance and advisory brokerage that provides specialized risk management to construction companies in Charlotte, is also noticing this shift.

“New construction starts have dropped significantly as developers are cautious amid high interest rates and inflationary pressures,” NFP Senior Adviser Peet Poillon said. “Despite this, Charlotte's construction pipeline remains one of the largest nationally, particularly in multifamily and build-to-rent sectors.”

Poillon moderated a panel discussing how to make projects happen in today’s construction market at Bisnow’s Charlotte Construction and Development Conference on Nov. 4. 

Bisnow spoke with Poillon about the state of construction in Charlotte, his role at NFP and how the firm is helping advise construction clients.  

Bisnow: How would you describe the current state of the construction market in Charlotte?

Poillon: The current state of the construction market in Charlotte is characterized by a slowdown from the historic expansion highs of 2023 and 2024. Apartment completions peaked in 2024 with more than 16,700 units delivered, but 2025 is expected to see about a 30% decline in completions with approximately 12,000 units delivered.

While the market is currently in a "breather" phase after rapid growth, it's expected to pick up as interest rates stabilize. The market is also absorbing these new units strongly, with absorption reaching record highs in 2024.

However, office vacancy rates are still elevated compared to national averages, and operating costs like taxes, insurance and maintenance continue to rise, squeezing operating income for property owners. The industrial and commercial construction sectors are experiencing a similar cautious slowdown, with developers focusing on completing ongoing projects and postponing new starts until demand rebalances. Labor shortages and material cost inflation remain key challenges.

Bisnow: Can you tell us about your role at NFP?

Poillon: My role involves advising construction companies on managing their insurance portfolios, mitigating risks related to labor, materials and project delays, and designing comprehensive coverage programs that fit the unique needs of builders and developers. NFP leverages its market expertise and broad carrier relationships to help firms maintain financial stability and protect against unforeseen claims.

Bisnow: What’s NFP's place in the market, and how are you advising construction companies in the Charlotte area? 

Poillon: NFP has established itself as a trusted adviser and risk management partner for local reconstruction and development firms. We support clients by offering innovative insurance solutions, safety consulting and strategic advice on navigating the evolving construction marketplace, including adapting to regulatory changes, labor shortages and cost fluctuations. 

For construction clients, NFP provides tailored approaches to manage exposures related to workforce challenges, supply chain disruptions and project financing risks.

Bisnow: What were some of the hottest topics of conversation at Bisnow’s Charlotte event? 

Poillon: The current cautious but optimistic outlook for construction in Charlotte, impacts of rising interest rates on project financing, workforce challenges, sustainability and green building trends, and the future of urban development, including residential and commercial shifts postpandemic. 

We also discussed how developers are being strategic in timing groundbreaking and focusing on projects with strong preleasing or tenant commitments.

Bisnow: What were some of the key takeaways from the event? 

Poillon: Labor shortages remain a critical concern impacting construction schedules and costs, and developers and contractors must be agile in managing the supply chain and inflationary pressures. There’s a strategic focus on build-to-rent and multifamily housing due to strong local demand driven by population growth. Also, risk management and insurance advisory services are becoming more pivotal in navigating uncertainties.

While Charlotte's construction market is moderating from recent highs, it remains active with strong underlying demand. NFP plays a crucial role in advising construction companies to effectively manage risk and adapt to market complexities, and Bisnow events provide valuable insights and networking to navigate these dynamics.

This article was produced in collaboration between Studio B and NFP. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.