Charlotte is home to some of the best economic tailwinds in the nation — yet the elevated levels of supply are putting pressure on multifamily fundamentals in the city.
For context, multifamily deliveries totaled 5,036 units in Charlotte in the first quarter, a market report from Colliers found. That's well above the demand of 2,940 units seen during the period, which is down from the 4,284 move-ins that occurred during the first quarter of 2025.
Additionally, rents were under pressure, with the market's ask averaging $1,535, down two percent year-over-year. Colliers noted that "rates are somewhat compressed by concessions."
Another category that slumped was sales.
"Strong demographic fundamentals helped drive significant investment activity in 2021 and 2022, but more recently, higher interest rates and a rise in multifamily CMBS loan delinquencies in 2025 have dampened transaction activity," Colliers noted.
"Entering 2026, transaction velocity declined on a year‑over‑year basis, though it remained above the quarterly lows recorded in 2023 and 2024."
Yet, investors should remain bullish over the positives. Most notably, Charlotte's employment sector grew at the second-largest rate in the nation last year, with the city adding more than 54,000 residents in 2025, making it one of the fastest-growing metros in the country, according to Colliers.
A notable area of multifamily improvement in the first quarter was that occupancy increased by 30 basis points year-over-year to 88.4 percent, though that amount is down by 40 basis points from the end of 2025.
Additionally, construction slowed from 27,505 units at the end of 2025 to 21,274 units.
Colliers thinks the trends, especially around the labor and population growth, will be favorable for multifamily in Charlotte.
"Combined with a tight single‑family housing market and ongoing home price appreciation, these trends should provide long‑term support and insulation for the multifamily sector," the CRE brokerage predicted.
Also, it noted that lower interest rates could re-fuel investor interest in the market over the next 12 months.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.