Charlotte, NC Market Update - Days on market averaging 90 days

[Maranda Tucker]

The Charlotte rental market is experiencing significant shifts, and it’s raising some important questions for both investors and property owners. Here’s what we’re seeing and how it’s impacting rents:

Key Trends

1. Rents Are Declining
   Charlotte has seen one of the steepest rent declines in the nation—ranked 6th overall. Since 2022, rents tracked through the MLS system for the Charlotte Metro area have steadily dropped.
2. 90 Days of Inventory
   We currently have 90 days of inventory on the market, a trend that’s persisted for five consecutive months. Historically, Charlotte has never experienced more than two months of this level of inventory in any given year.
3. Days on Market Has Doubled
   Compared to last summer, the average Days on Market for rental properties has doubled, making it clear that tenant demand isn’t keeping up with supply.

Why Is This Happening?

Several economic factors are contributing to this shift:

• Overbuilding: Some areas of Charlotte have seen significant overdevelopment, leading to an oversupply of rental units.
• Tighter Money: Rising interest rates and economic uncertainty have made tenants more cautious with their spending.
• Tenant Behavior: Many responsible renters are choosing to stay put rather than take on the cost and hassle of moving.

What Does This Mean for Landlords?

For those navigating this evolving market, here are some critical takeaways:

1. Price Competitively
   Correctly and competitively pricing your property is no longer optional—it’s essential. Overpricing will likely lead to longer vacancies and lost income.
2. Respond Quickly
   Tenants have more choices than ever, and properties that don’t respond to inquiries promptly may lose out. Streamline your communication process to secure quality tenants.
3. Focus on Quality
   The condition of your property matters more now than ever. With increased competition, renters are opting for homes that offer better value, updated features, and overall appeal.

Final Thoughts

This market shift is a wake-up call for investors and property owners in Charlotte. While the current conditions may feel challenging, they also present opportunities to fine-tune your strategy and stand out in a crowded market.

Are you experiencing these trends in your portfolio? How are you adjusting?