The overall rental market in the U.S. showed signs of cooling in December, with typical rents settling at $1,957, according to the Zillow Observed Rental Index (ZORI). That’s a slight (0.2%) dip from the previous month, offering modest relief for renters facing ongoing affordability challenges. However, despite the month’s decrease, rents are still up 3.3% from a year ago.
How Does Charlotte Compare to the National Average?
As of January 2024, the average rent in Charlotte is $1,418 per month, which is well below the national average. But keep in mind, Charlotte continues to struggle with rental availability in highly desired areas. Once more choices become available, the average rent will increase.
Based on current inventory, here is the average rent in Charlotte by square footage.
Apartment Type | Average Rent | Average Sq Ft |
Studio | $1,438/month | 571 Sq Ft |
One Bedroom | $1418/month | 742 Sq Ft |
Two Bedroom | $1,693/month | 1,073 Sq Ft |
Three Bedroom | $2,054/month | 1,359 Sq Ft |
How much has the average rent changed in Charlotte YOY?
In the past year, rent in Charlotte has decreased by 2.98% per Apartment.com. This represents an average of $42 less per month. In fact, a new analysis by Realtor.com lists Charlotte among the U.S metros seeing the biggest drop in rent prices.
Experts say the drop in prices comes from simple supply and demand: more people are moving into apartments in the Charlotte area, but the number of apartments available is going up as well, leading to higher vacancies in complexes.
Location is the #1 consideration for potential renters, but that doesn’t always equate to affordability.
Increased Use of Rental Concessions in Recent Months
Rent concessions are up from year-ago levels in 47 of the 50 largest metro areas. The annual increase in share of rental listings with concessions is highest in Salt Lake City (42 pp), Charlotte (24.9 pp), Austin (21.5 pp), Raleigh (21.5 pp) and Dallas 21.2 pp).
The State of Rent Affordability
Rent affordability remains a crucial issue, with the median household needing to spend 29.5% of its income on a new rental in November (the most recent data available). This is a marginal increase from the previous month, but still higher than the pre-pandemic average of 28%.
Final Thoughts
Based on the data, how does the property you are managing stack up? If you are seeing trends based on applicants’ input, let the property management know. As a property manager your role is to know the market, understand who your ideal renter is, and provide the services needed to secure valuable, long-term renters.
Resources: Zillow.com, WSJ.com, Apartment.com, and various local resources.