The North Charlotte Submarket encompasses a diverse set of neighborhoods, from the north side of the NoDa neighborhood, where the LYNX Blue Line extension has spurred new construction, to the suburban Northlake area, where development from the booming University area is spreading along the I-485 corridor, to the Mountain Island Lake area, which includes industrial areas and some of the Charlotte metro's last remaining rural districts. In between, the Beatties Ford Road corridor includes an older stock of workforce housing.
Charlotte's strong population growth has contributed to housing demand throughout the metro. North Charlotte's proximity to local employment nodes such as University City and less expensive rents for premium units make the submarket a hot spot for renters.
The North Charlotte submarket is also on the radar of REIT and institutional investors. Florida-based REIT Starwood bought the Lodge at Mallard Creek in November 2021 as part of a 62-property, $3.65 billion national portfolio.
Inventory
Charlotte's apartment inventory is expanding fast. Charlotte led the country in net deliveries as a percentage of inventory for the second year in a row in 2021, and the market's construction pipeline on a percentage basis remains in the top 10 among U.S. metros. The 21,000 units currently under construction, represents 10.6% of existing inventory, the largest supply expansion on record for the market. Strong demand has kept rents in the Charlotte market growing rapidly, but new supply and slowing absorption has brought annual asking rent growth rates down from extreme peaks.
North Charlotte's apartment inventory has grown by more than 50% since 2010, and the expansion is expected to continue as roughly 2,000 units are underway, representing an inventory expansion of 14.3%.
MultiFamily
Multifamily investment in North Charlotte has increased considerably in the recent years, and roughly $696 million in transactions has closed over the past year. Apartment assets have appreciated well, climbing from less than $80,000/unit in 2010 to roughly $240,000/unit today.
Charlotte rents are growing at a historically high pace of roughly 10.6% year over year. Increasing household formation, migration from higher-cost markets in the Northeast, as well as generally improving labor market conditions drove demand throughout the Charlotte region, and rents have grown across all submarkets.
