Author: O.K. Hogan | REALTOR®/BROKER, CCIM, SFR

I started coming to Carteret County more than 30 years ago for the same reasons folks still come today; salt air, friendly faces, and a pace of life that lets you breathe. By the time my wife, Lugean, and I moved to Beaufort in 2000, I’d seen the area through both visitor and local eyes. That vantage point helps me evaluate opportunities with both heart and numbers; and today, one of the clearest opportunities in North Carolina is multifamily real estate, with a strong side current of coastal rental homes that double as personal retreats.

As a retired professional accountant and CCIM, I start with data before painting colors. Then I ground that data in what I’m hearing on porches, at church, and around backyard seafood boils. When the numbers and the neighborhood stories line up, that’s where I tell clients to lean in.

Why North Carolina Now?

North Carolina crossed 11 million residents and remains one of the nation’s migration magnets. Over the year ending July 1, 2024, the state gained 82,288 residents from net domestic migration, second only to Texas, according to the U.S. Census Bureau and the NC Office of State Budget & Management for details.

That steady inflow is no abstraction. I hear it weekly from families who used to vacation on the Crystal Coast and are now buying here, from retirees shifting full-time to the coast, and from professionals relocating for work in Charlotte and the Triangle. Local papers and demographers have echoed the same theme; growth picked up in NC in 2024, with total population gains among the nation’s leaders.

Tourism amplifies demand in the coastal counties. North Carolina set a record $36.7B in visitor spending in 2024, with 71 of 100 counties posting increases; tailwinds that support short-term rental demand in places like the Crystal Coast, Wilmington area, and the Outer Banks.

Market Map: Where Demand Concentrates

Charlotte: Scale and Staying Power

Charlotte remains the state’s economic engine, and the rental data reflect it. Average advertised asking rents were $1,594 and up 0.1% on a trailing three-month basis through June 2025, per Yardi Matrix’s latest metro read. Developers had already delivered 8,337 units (3.5% of stock) year-to-date, with 18,000 projected for 2025, sizable supply that the market has been steadily absorbing.

Quarter-to-quarter headlines show nuance. Axios Charlotte reported the average rent was roughly flat in early 2025 (down a dollar year-over-year to $1,644 amid elevated new supply and robust concessions), which is consistent with a market digesting a big pipeline while demand remains healthy.

Investor angle: Submarket selection matters. Urban hot spots like South End can feel delivery waves more acutely, while suburban nodes often show steadier renewals. With completions expected to slow into 2026, Charlotte sets up well for gradual firming provided you underwrite concessions and lease-up timing realistically.

Raleigh–Durham (Triangle): Tech, Life Sciences, and Resilience

The Triangle’s story in 2025 is “transitioning from boom to balance.” Yardi Matrix reported advertised rents at $1,557 (+0.5% three-month basis as of April; –0.6% YoY), with occupancy at 93.5% in March due to heavy deliveries. By Q2 2025, Avison Young recorded occupancy rebounding to 94.8% as supply cooled and demand set records.

Investor angle: RTP-adjacent locations (Cary/Morrisville, parts of Durham and North Raleigh) still lease well, but you’ll want to model longer lease-ups for brand-new assets and keep a cushion for concessions. For stabilized B-class assets, renewal strategy and modest, targeted upgrades can drive NOI even when nominal rent growth is muted.

Coastal and Lifestyle Markets: Limited Supply, Durable Demand

In Wilmington and beaches, county-level studies show growing visitor employment and spending, underscoring the role of tourism in rental demand (and owner-use). In 2024, tourism employment in New Hanover County ticked up again, illustrating why well-located coastal rentals tend to have durable occupancy in both peak season and shoulder months. Read StarNews Online for more information.

Demand Drivers You Can Underwrite

• Migration & Demographics: North Carolina’s domestic in-migration was among the top three nationally in 2023–2024, reflecting the state’s relative affordability and jobs mix.
  
  
• Jobs & Industry Mix: Finance in Charlotte, tech and life sciences in the Triangle, healthcare, military, ports, and tourism across the coast create diverse renter profiles, from young professionals to retirees and seasonal workers.
  
  
• Tourism Tailwind: 2024’s Record Tourism Growth Boosts Economies of Most N.C. Counties add resilience for short-term rentals; especially where hotel alternatives are limited and experiences matter.

Supply Picture & Pipeline Risk

• Charlotte: 2025 is a heavy delivery year (18,000 expected), which can put pressure on lease-up pace and concessions in specific nodes, even as the broader market keeps absorbing.
  
  
• Triangle: Early-2025 softness from robust new supply has been easing; occupancy improved into Q2 2025 as demand met the pipeline.
  
  
• National Context: Multifamily occupancy near 95% mid-2025 suggests a stable national backdrop while markets work through new deliveries.
  
  

How to apply it in underwriting: Stress-test lease-up timing, concession burn-off, and refi scenarios (exit cap spread and DSCR). In coastal submarkets, protect your model with insurance and tax sensitivity.

Operating Fundamentals by Asset Type

Class A (Urban & First-ring Suburban) Newer assets will face the brunt of competition where deliveries are concentrated. Pair premium locations with amenities residents actually use (work-from-home nooks, pet facilities, secure package rooms). Expect concession discipline in lease-ups.

Class B Value-Add (1985–2005) This is often the sweet spot. Thoughtful, cost-effective upgrades (LVP flooring, LED packages, resurfaced counters, improved lighting, and water-saving fixtures) can lift rents and cut OpEx. In 2025, many B-class assets benefit from Class A’s concession noise: renewal retention becomes your best friend.

Workforce Housing Steady occupancy and real community impact. With inflation and interest-rate pressure, renters value predictability. Keep a sharp eye on tax reassessments and insurance to maintain affordability and NOI.

Coastal Vacation Rentals Limited new supply in beach towns plus record visitor spending bolster year-round performance (peak + shoulder). Make sure your zoning, permitting, and HOA rules align with your strategy and budget for storm-hardening and elevated insurance.

Risks: What to Underwrite Explicitly

1. Interest Rates & Refi Walls: Underwrite higher-for-longer and keep an exit cap spread cushion.
   
   
2. Supply Concentration: Charlotte and Triangle submarkets with 2024–2025 deliveries may require longer lease-up windows and concessions.
   
   
3. Insurance & Taxes: Especially in coastal counties; source quotes early, use county comps, and plan for resilience upgrades.
   
   
4. Regulatory / Legal Noise: Litigation around rent-setting has raised attention nationally and in large metros. Even if you’re not impacted directly, adopt transparent pricing and resident-first practices.

Strategies That Fit 2025 Conditions

• Core / Core-Plus in Strong Nodes: Ride demand normalization as supply burns off, especially around job centers (Uptown/South End in CLT; RTP-adjacent in the Triangle).
  
  
• Value-Add in B-Class: Focus on durability upgrades that hit NOI: water efficiency, LED packages, smart thermostats, and modest interior refreshes.
  
  
• Build-to-Rent (BTR): Suburban counties with family in-migration respond well to single-family rental neighborhoods.
  
  
• JV / Forward Purchase: Partner with reputable developers to right-time delivery, align on capex waves, and share lease-up risk.

Submarket Cheat Sheets (Quick Hitters)

Charlotte – South End / University / Suburban Nodes

• Why it works: Diverse employers, steady in-migration, lifestyle amenities.
  
  
• What to watch: Delivery clusters and concessions; submarket-level absorption.
  
  
• Deal types: A-class lease-ups with patient capital; B-class value-add with renewal focus.
  
  

Raleigh–Durham – Downtowns, Cary/Morrisville, RTP-Adjacent

• Why it works: Tech, life sciences, universities, and quality-of-life draws.
  
  
• What to watch: Moderating pipeline; occupancy recovered to 94.8% in Q2 2025.
  
  
• Deal types: Stabilized B-class and well-located A-class with conservative TIs.
  
  

Coastal – Wilmington & Crystal Coast

• Why it works: Record visitor spending, limited supply, lifestyle halo.
  
  
• What to watch: Insurance, flood maps, and local STR rules.
  
  
• Deal types: Duplexes/triplexes for mixed personal use and STR income; small-scale MF with strong seasonal demand.

Simple Underwriting Template (Use These Ranges as Starting Points)

• Rents & Occupancy Benchmarks:
  
  
  • Charlotte: Average advertised asking rent is $1,594; +0.1% on a three-month basis through June 2025.
    
    
  • Raleigh–Durham: Average advertised asking rent is $1,557; +0.5% on a three-month basis (Apr) with 93.5% occupancy (Mar) improving to 94.8% by Q2 2025.
    
    
    
• Delivery Context:
  • Charlotte 2025 deliveries: 8,337 units YTD (3.5% of stock); 18,000 expected for the year.
    
    
• Expense & Risk Sensitivities:
  • Model insurance and tax growth above CPI in coastal areas; test refi at conservative rates.
    
    
• Exit Case:
  • Use 50–100 bps exit-cap buffers and flat-to-low rent CAGR scenarios when pipeline is still normalizing.

Ethics, Tenants, and Community Impact

Returns are stronger and more durable when residents feel respected and cared for. That’s not just a sentiment, it’s a strategy. Clear communication, fast maintenance, fair renewals, and upfront policies reduce turnover and protect your reputation.

In larger metros, public scrutiny has increased around rent-setting practices. Even if you’re nowhere near those cases, the best defense is good practice: price transparently, maintain responsibly, and treat residents like neighbors.

The Coastal And Strategy: Income and Enjoyment

A lot of our investor clients want both: a place to enjoy with family and a property that pays its way. That’s where coastal duplexes, triplexes, and vacation homes shine. With record visitor spending statewide and limited supply in many beach towns, well-managed rentals can deliver attractive occupancy and repeat guests.

If you’re leaning this direction, make your first three calls about zoning, insurance, and property management. Then talk finishes and furnishings.

Conclusion: Partner with a Team That Blends Numbers and Local Know-How

North Carolina’s fundamentals, migration, jobs, and tourism, are powering multifamily and coastal rental opportunities from Charlotte and the Triangle to Wilmington and the Crystal Coast. Yes, some submarkets are digesting heavy deliveries, but the broad picture is stable to improving as 2025 progresses, especially for investors who underwrite concessions, insurance, and refi conservatively.

At Star Team Real Estate, we bring the financial lens (my CCIM and accounting background) and the local lens (decades on the coast) to help you evaluate opportunities that make sense on paper and in real life. If you’re exploring rental investment and vacation homes, start here: North Carolina Rental Investment & Vacation Homes for Sale; our guide to neighborhoods, returns, and ownership paths that fit your goals.

Call us at (252) 727-5656. I’m happy to walk you through the numbers, and I’ll probably share a story or two from our seafood dinners along the way.