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Apartment Fundamentals Stabilize

CHARLOTTE-In 2010, the vacancy rate is expected to rise 70 basis points to 12% compared to a rate that rose by 310 basis points in 2009.

By Hortense Leon | Updated on May 12, 2010

CHARLOTTE-Although not out of the woods yet, the Charlotte apartment market should begin to stabilize or even improve later this year, according to a first-quarter 2010 Market Update by Marcus & Millichap. Supply growth and declining demand for rental units increased the vacancy rate for the Charlotte area by 260 basis points over the 12-month period ending on March 31, 2010 to about 11.5%.

But the vacancy rate rose just 90 basis points during the last six months of that period, as job loss moderated. The vacancy for the metro area is expected to climb to 12% this year, a rise of 70 basis points, compared to an increase of 310 basis points in 2009.

After climbing nearly 700 basis points from the beginning of 2008 through the end of 2009, because of competition from the shadow market as well as rising job losses, vacancies in the Uptown market have begun to improve as more apartment leases are signed. The increase in rental activity has also affected vacancies and effective rental rates in the Carmel submarket in the southern part of the metropolitan area, according to M&M.

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