In Charlotte, general construction cost ranges for multifamily and commercial projects have risen notably in recent years. Developers report average per-unit hard construction costs for multifamily housing falling between the mid‑hundreds of thousands, depending on building type, density, and location. These figures exclude land, permitting, and financing costs, which continue to exert upward pressure on overall budgets. Material costs have stabilized somewhat post‑pandemic, but labor shortages and elevated interest rates remain key cost drivers.
Trade labor, journeyman, and subcontractor rates in Charlotte have trended upward through 2024 and into 2025. Skilled trades remain in high demand, and labor availability continues to be constrained, contributing to sustained rate increases. Subcontractor premiums reflect both the scarcity of qualified crews and the competitive market for timely project delivery.
Charlotte’s development pipeline remains robust, with approximately $3.7 billion in new construction projects underway or expected to begin through 2026, alongside $1.7 billion allocated to revitalizing aging buildings. Although this represents a decline from prior years, the market remains active, particularly in adaptive reuse and mixed‑use development. Office vacancy rates in older buildings remain elevated, while newer properties maintain high lease rates. This dynamic is shaping construction demand and cost expectations across the city.
