Despite Supply Headwinds, Carolinas Rents Continue to Increase

Despite elevated new apartment construction activity, the Carolinas have maintained decent pricing momentum close to the U.S. average. In May 2023, rents were up by 0.5% in the Carolinas, a monthly pace right in line with the national norm of 0.4%. Normally, this would not be quite an impressive feat. But it becomes one when considering supply headwinds. In the past decade, Carolinas markets made up four of the top 10 markets for inventory growth rates. Charleston led the nation with an increase of 61% over the last 10 years, while markets with inventory growing by around 50% include Charlotte, Asheville and Wilmington. Raleigh/Durham just missed a top 10 showing with a 10-year inventory increase of 40%, while Greenville/Spartanburg, SC was up by about 30%. Despite such big volumes of new construction activity, however, rents continue to maintain strength in these markets.

For more information on the state of the Carolinas apartment market, including forecasts, watch the webcast Market Intelligence: Q2 Carolinas Update.