Charlotte apartment construction surges to all-time high

New numbers from a research company are confirming what anyone can see in a drive around Charlotte: Apartment construction in the city is at an all-time high.

Some in the real estate community say Charlotte might be on the verge of an apartment market bubble. But apartment complex builders say strong job growth and a rising population will keep the market thriving.

A new report from research firm Real Data tracked activity in Charlottes multifamily market over the past six months and found 10,067 units under construction. Most of the new units are in uptown and in neighborhoods such as South End, SouthPark, NoDa and Elizabeth. An additional 11,003 units have been proposed.

The units under construction mark the most apartment-building Charlotte has ever seen, according to Charles Dalton, principal at Real Data. The previous high came during in 2000, he said, when just under 8,000 units were under construction.

The city over the past five years has averaged 4,479 units under construction, so the latest figures show the multifamily development market has yet to cool down, despite concerns in some quarters that it might be getting overbuilt. The Real Data report says that as the newest units hit the market in the next year, vacancy rates that currently sit at 6.2 percent will rise to as much as 8 percent.

Critics say developers who couldnt get money to build condos or single-family homes during the recession are bingeing on apartment construction since banks have been more likely to lend for multifamily projects.

I think were kind of overdosing on the apartments, said Wendy Field, who develops townhomes for sale. If you just drive around Charlotte you can tell. Theres just so many apartments. Its hard to think theres enough people to justify it all.

She believes Charlottes apartment market could see a downturn similar to the recent real estate bubble if rental rates dont keep performing well enough to keep banks and other creditors happy.

Apartment developers disagreed.

Spectrum Properties broke ground last week for The Mint, a new 177-unit luxury apartment complex across West Fourth Street from the new BB&T Ballpark.

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Charlotte apartment construction surges to all-time high