For several years, multi-family real estate had enjoyed steady growth rates across the United States. Then, with the globaloutbreak of COVID-19 in early 2020, all types of real estate development suffered a blow. Still, multi-family properties weathered the pandemic better than most other forms of real estate, and national rental rates for 2021 were better than they were in 2020.
Multi-family development in North Carolina has bounced back particularly well, with the key cities of Charlotte and Raleigh both experiencing a population increase of almost 4% from 2020 to 2021. Due to the large number of businesses and higher learning centers in both cities which attract many young professionals, multi-family developments in these areas have continued to flourish and are projected to continue turning profits as we enter 2022.
The Future of Multi-Family Development in North Carolina
Despite setbacks to the real estate industry from the pandemic, multi-family housing trends project a strong year for 2022. Origination volume for multi-family real estate grew to a whopping $450 billion in 2021, and this growth is forecasted to reach as high as $500 billion in 2022. The national apartment occupancy rate in July of 2021 was 96.9%, the highest number in over 20 years! Occupancy levels for multi-family housing are expected to remain above 95% going forward with a projected 7% growth for net effective rent in 2022. Market analysts predict a record multi-family investment volume of $234 billion for 2022!
In North Carolina, Charlotte and Raleigh both enjoyed booming multi-family development growth trends in 2021 that are forecasted to continue in 2022. Charlotte ranked 10th for rent growth among American metroes in 2021, with a 17.6% increase in rental prices. On a trailing three-month basis, multi-family rent in Charlotte increased by 1.2% as of November 2021, significantly higher than the national average. With these positive trends, Charlotte is slated to continue being a hot spot for multi-family real estate development and investment throughout 2022.
The Research Triangle, composed of Raleigh, Durham and Chapel Hill, continues to be one of the fastest growing real estate markets in the United States, making it a prime spot for multi-family development in North Carolina. In January 2022, Raleigh’s rental rates increased 3.43% from December 2021, with a total increase of 11.2% in the past year! The average rent for a one-bedroom apartment in Raleigh is over $1,200, representing a 15% increase since 2021.
Invest in North Carolina’s Multi-Family Real Estate Now
Catalyst Capital Partners has made it our mission to develop premium multi-family real estate in cities throughout North Carolina, including Charlotte and Raleigh. If you’re eager to invest in North Carolina’s promising multi-family real estate market in 2022, contact Catalyst Capital Partners today!