While we remain interested in the North Carolina market, we continue to evaluate other markets with comparable path-of-progress fundamentals.
With interest rates trending lower following the Fed's 25bps cut last week and the promise of more to come, we expect cap rates to follow and values to rise. Even so, we approach new opportunities with discipline, prioritizing principal preservation first while recognizing that today’s environment presents a constructive entry point for long-term investors.
Here's what we're seeing with a focus on North Carolina:
RATES EASE, MULTIFAMILY DEMAND ENDURES
The Fed’s September cut lowered short-term rates, but the outlook for North Carolina housing still hinges on long yields, credit spreads, and the renter demand created by migration and affordability barriers.
In September, North Carolina’s housing market reflected a mix of shifting monetary policy and local momentum. The Fed’s rate cut offered some near-term relief on borrowing costs, but investors remained focused on longer yields and spreads as the true test for deal feasibility. At the same time, fresh capital commitments and development approvals across the state signaled that housing demand is being reinforced by local growth drivers rather than policy alone.
Charlotte sits near the top nationally for apartment construction, and households priced out of ownership are keeping rental absorption steady even as new supply arrives. From aerospace investment to mixed-use approvals, September reinforced the same story: North Carolina’s multifamily demand is being shaped by durable economic anchors rather than temporary cycles.
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DEMAND REMAINS STRUCTURAL
The Fed made its first rate cut since December, lowering the federal funds target range by 25 basis points to 4.00%–4.25 percent and indicating the possibility of additional cuts this year.
This move comes amid cooling in the labor market even as inflation remains modestly above target.
In Charlotte, multifamily fundamentals are showing resilience. According to the latest Yardi Matrix report, average asking rents ticked up modestly (0.1%) over the past three months, even as occupancy remains under tight pressure. Forecast-oriented data from MMGREA expects rent growth to reach ~4.2% by Q4 2025, with occupancy staying relatively stable despite major deliveries in 2024 that stretched capacity.
What this means for NC multifamily operators:
->Borrowing costs should ease somewhat for short-term and floating components of capital stacks, though long-term fixed debt and spread risk will still matter.
-> Supply-side pressure is cooling: unit completions are projected to decline after the high-water mark of 2024, which helps absorption catch up.
-> Rental demand held up even with the rate environment; affordability constraints and ownership barriers keep many households renting.
Taken together, the Fed cut may not immediately transform deal economics, but it provides a clearer path for multifamily stabilization in NC and other markets we are focused on. Demand remains structural, not transient, supported by job growth, migration, and affordability pressure.
CAPITAL COMMITMENTS REDRAW NORTH CAROLINA’S GROWTH MAP
Capital and approvals are playing a large role in the state’s next phase of growth. GE Aerospace’s $101 million investment across four sites strengthens the state’s role in defense and aviation, while the North Carolina Railroad Company’s Build Ready Sites program is preparing industrial parcels by funding site work ahead of tenant commitments.
At the local level, Durham’s approval of the Gateway at Brier Creek clears the way for new mixed-use density in one of the Triangle’s busiest corridors. Statewide, the EDPNC’s Q2 report recorded 71 new projects representing $18.9 billion of investment, extending the record-setting totals achieved in 2024.
Together, these announcements expand the industrial, residential, and mixed-use footprint across the state. They also reinforce the conditions that sustain multifamily demand: steady job creation, population inflows, and the affordability barriers that continue to push households toward rental housing.
HOUSING GROWTH SIGNALS ACROSS NORTH CAROLINA
North Carolina’s growth story isn’t slowing. In the Triangle, new multifamily permits continue to add to an already active base. State data show steady authorizations in Wake and Durham Counties, reinforcing the region’s position among the fastest-growing rental markets in the Southeast.
On the multifamily side, developers continue to add units in Charlotte at one of the fastest clips in the nation. Developers are still committing capital: The NRP Group broke ground on a 348-unit community in Selma, and Peakline’s build-to-rent fund acquired a new site in Charlotte.
Market data underscores the trend. Yardi Matrix reports steady absorption in Charlotte, while Zumper shows rents holding firm despite new deliveries. Statewide, HousingWire highlights the affordability gap that keeps many households renting.
The signal is consistent: active permits, construction that is moving forward, and focused capital commitments are reinforcing multifamily demand, especially in well-located neighborhoods with high ownership barriers.
CHARLOTTE MARKET: PERMITS RISE AS BUILDERS DOUBLE DOWN
Opus has opened a new Dilworth office in Charlotte, marking its push into both industrial and multifamily projects in the region. The expansion reflects accelerating demand and rising interest in core and near-core neighborhoods.
Permit data highlights cracks of supply pressure. The RealPage July 2025 Metro Permit Update flagged that while multifamily permitting nationally has been soft, Charlotte is among the metros showing renewed year-over-year momentum.
At the same time, residential permit activity in the Charlotte region - covering Mecklenburg, Gaston, Iredell, Union, and Cabarrus counties - remains steady. According to Mecklenburg County’s open data dashboard, building permits (both residential and commercial) continue being issued at a healthy rate. The Daily Building Permits Issued report shows recent monthly activity holding above the same period last year.
For multifamily developers and operators, the implications are clear: competition for development sites in Charlotte is intensifying. As permitting picks up and new entrants like Opus move in, absorption rates and rental pricing in well-located submarkets may be the early beneficiaries.
WHAT WE’RE WATCHING - SEPTEMBER SIGNALS
In Wilmington, apartment completions are projected to fall nearly 29% this year compared to 2024, with deliveries dropping from 2,509 units last year to about 1,795 in 2025.
Even with that slowdown, demand is holding firm. According to Zumper, one-bedroom rentals average around $1,320, three-bedrooms about $2,390, and most units are leasing in just 16 days.
Investor activity is also steady in Raleigh-Durham. A partnership of Abacus, BMC, and Turnbridge acquired the 339-unit Sterling Town Center for $73.1 million, showing that capital is still flowing into demand-driven multifamily even with tighter financing conditions.
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Looking ahead, the combination of easing rates, durable renter demand, and targeted capital inflows point to continued support for multifamily performance. Our strategy is to stay positioned where fundamentals are strongest, remain disciplined in underwriting, and focus on opportunities that balance growth potential with downside protection. For more information about our investment approach or upcoming opportunities, please visit coresrealestate.com or contact our investor relations team at [email protected]
