Tracking the trends, fundamentals, and forecasts shaping North Carolina’s top multifamily markets.
Executive Summary
Charlotte and Raleigh-Durham (Research Triangle) represent North Carolina’s two dominant multifamily markets, each facing distinct challenges and opportunities in the coming years. Charlotte is navigating significant supply pressures with elevated vacancy rates, while Raleigh-Durham has demonstrated exceptional absorption capacity despite substantial new deliveries. This analysis examines the current fundamentals and investment implications for both markets.
Market Size and Demographics
Charlotte Market: Charlotte stands as North Carolina’s largest city with approximately 911,000 residents, having grown 1.28% between 2022 and 2023 (Carolina Demography, 2024). The metropolitan area reached 2.32 million people in 2024, representing a 2.38% increase from 2023 (MacroTrends, 2025). The city’s median household income grew significantly to $78,438 in 2023, up 5.9% year-over-year (Data USA, 2024).
Raleigh-Durham Market: Though slightly smaller in size with metropolitan area population reaching 1.66 million in 2024, the Raleigh market area saw a similar 2.39% increase from 2023 (MacroTrends, 2025). The city’s median household income also saw an increase in to $82,424 in 2023, a 4.82% growth from the previous year. (Data USA, 2024)
Current Multifamily Fundamentals
Charlotte Market Performance
Rent Levels and Trends: Charlotte’s rental market shows mixed signals across different data sources. RentCafe reports average apartment rent at $1,666 (RentCafe, 2025), while Zillow indicates a median rent of $1,444 across multifamily units, with rents decreasing by $80 compared to the previous year (Zillow Rental Manager, 2025). Northmarq data shows asking rents dipped 0.9% in Q4 to $1,578 per month, ending 2023 just 0.5% higher year-over-year (Northmarq Research, 2024).
Vacancy and Supply Pressures: Charlotte faces significant supply challenges with an estimated 12.5% vacancy rate in Q1 2024, driven by 30,000 new units currently under construction (Apartments.com Research, 2024). This represents one of the highest vacancy rates among major U.S. multifamily markets. However, some sources indicate lower vacancy rates around 4.5% for stabilized properties (The Luxury Playbook, 2025), suggesting variation between new lease-up properties and established inventory.
Transaction Activity: Charlotte’s multifamily transaction market gained momentum to close 2024, with Class A asset median prices at $253,300 per unit, accounting for roughly 30% of sales. Cap rates also appear to have stabilized around 5.5% for performing properties. (Northmarq Research, 2025).
Raleigh-Durham Market Performance
Rent Levels and Trends: Raleigh’s average advertised asking rents were $1,520 as of December 2024, down 0.6% on a three-month basis and contracting 3.1% year-over-year (Yardi Matrix, 2025). This places RDU rents below Charlotte levels but within a similar downward trend.
Absorption and Demand: The Triangle market demonstrated exceptional strength with multifamily absorption hitting a 20-year high in Q3 2024 (Northmarq Research, 2024). Net absorption is expected to set an annual record, driven by the metro’s highly skilled workforce, with approximately 45% of the population holding a bachelor’s degree as of 2024 (Northmarq Research, 2024).
Supply and Occupancy: Net absorption gained momentum amid nearly 2,700 units of new supply in Q1 2024, though the vacancy rate climbed 20 basis points to 7.7%, up 110 basis points year-over-year (Northmarq Research, 2024). However, with demand reaching new heights market-wide, multifamily occupancy continues to tighten, with all asset classes topping 96% (Marcus & Millichap, 2025).
Market Analysis and Investment Implications
Charlotte: Supply Digestion Phase
Charlotte’s multifamily market is clearly in a supply digestion phase, with significant new inventory pressuring both rents and occupancy rates (Northmarq Research, 2024). The wide variance in reported vacancy rates (4.5% to 12.5%) suggests a bifurcated market where established properties maintain reasonable occupancy while new deliveries struggle with lease-up (Apartments.com Research, 2024; The Luxury Playbook, 2025).
Investment Considerations:
- Near-term challenges: High vacancy rates and rent pressure from substantial new supply
- Medium-term opportunity: Market should stabilize as supply pipeline normalizes (Northmarq Research, 2024)
- Transaction activity: Improving momentum suggests investor confidence in long-term fundamentals (Northmarq Research, 2025)
Raleigh Durham: Strong Fundamentals Despite Supply
The Triangle market demonstrates superior absorption capacity, successfully digesting substantial new supply while maintaining healthier occupancy metrics (Northmarq Research, 2024). The 20-year high in absorption reflects genuine demand strength from a highly educated workforce (Northmarq Research, 2024).
Investment Considerations:
- Demand strength: Record absorption levels indicate robust underlying fundamentals (Northmarq Research, 2024)
- Occupancy resilience: Ability to maintain 96%+ occupancy across asset classes (Marcus & Millichap, 2025)
- Workforce quality: High education levels support premium rental demand (Northmarq Research, 2024)
Market Outlook
Charlotte Forecast
Market conditions should strengthen beginning in 2025 as the supply overhang is absorbed (Northmarq Research, 2024). The key timing factor will be how quickly the 30,000 units under construction are delivered and leased (Apartments.com Research, 2024).
Raleigh-Durham Forecast
While 2024 was a year of limited rent growth, conditions should strengthen through 2025 (Marcus & Millichap, 2025). The combination of record absorption and pipeline optimization positions Raleigh-Durham for stronger near-term performance (Northmarq Research, 2024).
Strategic Recommendations
For Charlotte Investment:
- Value opportunity: Current supply pressures create favorable acquisition conditions
- Timing strategy: Focus on assets positioned for 2025-2026 recovery
- Submarket selection: Avoid areas with highest new supply concentration
For Raleigh-Durham Investment:
- Quality focus: Target assets serving the highly educated workforce
- Absorption confidence: Strong demand metrics support new development
- Premium positioning: Higher education levels justify quality product investment
Want to Dive Deeper?
If you’re interested in a tailored analysis or market-specific strategy in either of these markets or beyond, Scholhamer Research & Advisory offers customized reporting and consulting services for developers, investors, and asset managers. Reach out to explore how we can support your next move.
References
- Apartments.com Research. Top 10 Multifamily Markets with the Highest Vacancy in Q1 2024. Retrieved from: https://www.apartments.com/grow/learning-center/vacancy-trends-q1
- Avison Young. Raleigh-Durham Multifamily Real Estate Market Reports. Retrieved from: https://www.avisonyoung.us/web/raleigh-durham/multifamily-market-report
- Carolina Demography, UNC Chapel Hill. (2024, May 21). Charlotte passes 900K residents. Retrieved from: https://carolinademography.cpc.unc.edu/2024/05/21/charlotte-passes-900k-residents/
- Data USA. Charlotte, NC Profile. Retrieved from: https://datausa.io/profile/geo/charlotte-nc/
- Data USA. Raleigh, NC Profile. Retrieved from: https://datausa.io/profile/geo/raleigh-nc/
- MacroTrends. Charlotte Metro Area Population (1950-2025). Retrieved from: https://www.macrotrends.net/global-metrics/cities/22954/charlotte/population
- MacroTrends. Raleigh Metro Area Population (1950-2025). Retrieved from: https://www.macrotrends.net/global-metrics/cities/23110/raleigh/populationh/population
- Marcus & Millichap. (2025). Raleigh 2025 Investment Forecast Multifamily Market Report. Retrieved from: https://www.marcusmillichap.com/research/market-report/raleigh/raleigh-2025-investment-forecast-multifamily-market-report
- Northmarq Research. (2024, November 22). Charlotte Market Sees Green Shoots Alongside Multifamily Inventory Growth 2024. Retrieved from: https://www.northmarq.com/insights/insights/charlotte-market-sees-green-shoots-alongside-multifamily-inventory-growth-2024
- Northmarq Research. (2024, October 25). Raleigh-Durham’s Multifamily Absorption Hits a 20-Year High in Q3 2024. Retrieved from: https://www.northmarq.com/insights/insights/raleigh-durhams-multifamily-absorption-hits-20-year-high-q3-2024
- Northmarq Research. (2024, November 14). Multifamily Supply and Demand in Raleigh Both Elevated to Start 2024. Retrieved from: https://www.northmarq.com/insights/insights/multifamily-supply-and-demand-raleigh-both-elevated-start-2024
- Northmarq Research. (2025, February 24). Charlotte’s Multifamily Transactions Gain Momentum to Close 2024. Retrieved from: https://www.northmarq.com/insights/insights/charlottes-multifamily-transactions-gain-momentum-close-2024
- Point2Homes. Average rent in Charlotte | Rental Housing Market 2025. Retrieved from: https://www.point2homes.com/US/Average-Rent/NC/Charlotte.html
- RentCafe. Average Rent in Charlotte & Rent Prices by Neighborhood. Retrieved from: https://www.rentcafe.com/average-rent-market-trends/us/nc/charlotte/
- The Luxury Playbook. (2025, April 26). Charlotte Housing Market Analysis & Forecast (2024 – 2025). Retrieved from: https://theluxuryplaybook.com/charlotte-housing-market-analysis-forecast-2024-2025/
- Yardi Matrix. (2025, March 18). Raleigh Multifamily Market Report. Retrieved from: https://www.yardimatrix.com/blog/raleigh-multifamily-market-report/
- Zillow Rental Manager. Average Rental Price in Charlotte, NC & Market Trends. Retrieved from: https://www.zillow.com/rental-manager/market-trends/charlotte-nc/
Report compiled June 2025. All data reflects the most current available information from cited sources. Market conditions are subject to change.
Limitations and Data Notes
This analysis is based solely on verified, accessible sources with direct links provided. Some market data points show variation between sources, reflecting different methodologies and timing. Investors should conduct additional due diligence and consult multiple data providers for comprehensive market analysis.