If you're a landlord or investor in the Charlotte area, you might have noticed something unusual in the rental market this winter. Historically, the average days on market (DOM) for rental properties only increases by about 6 days during November and December. This seasonal slowdown is typically predictable and manageable.
But at the end of 2024, we saw that increase jump to over 10 days, pushing average DOM from 25-30 to over 40. So, what caused this sharper-than-usual slowdown? Here’s what we’re seeing:
1. Seasonal Slowdown (With a Twist)
The holidays always lead to a slower rental market as potential tenants prioritize family, travel, and gift-giving over finding a new home. However, 2024’s holiday season was impacted by other compounding factors, making the usual seasonal dip more pronounced.
2. Economic Uncertainty
Economic pressures, such as inflation and fluctuating interest rates, created hesitancy among renters. Many people opted to stay in their current homes rather than take on new leases, contributing to longer vacancies for available properties.
3. A Surge in Supply
Charlotte’s rental market saw a notable influx of new units in late 2024, with several large developments hitting the market simultaneously. This added inventory gave renters more options, leading to increased competition for landlords.
Why This Matters (and Why There's Hope)
For landlords accustomed to a manageable 6-day increase in DOM during the holidays, the 10+ day spike might feel concerning. However, this isn’t a sign of a long-term shift—it's a temporary adjustment influenced by a unique set of factors.
The good news? The rental market is already showing signs of recovery:
- Spring Is Coming: Historically, the rental market picks up momentum in the spring as tenants prepare to move during warmer months or ahead of the school year.
- Early 2025 Trends Are Positive: In just the first week of January, we’ve seen a dramatic increase in rental applications, suggesting pent-up demand from renters who delayed their searches in November and December.
What Landlords Can Do Now
To make the most of this recovery, consider:
- Refreshing Your Listings: Update your photos, descriptions, and pricing to ensure your properties stand out.
- Offering Incentives: Temporary discounts or move-in bonuses can help fill vacancies quickly.
- Being Patient: The market is already bouncing back, so don’t panic if your property takes a bit longer to lease than usual.
What’s been your experience? Have you noticed these trends in your market? Let’s discuss what’s working to navigate these shifts and make 2025 a successful year!
