Economic Growth Sustains Demand in Raleigh
With 7,400 multifamily units underway, the metro’s 2018 deliveries are likely to exceed last year’s and generate moderate rent growth, as well.
Raleigh rent evolution, click to enlarge
Driven by a healthy economy and strong population growth, multifamily demand in Raleigh-Durham remains robust. As prices continue to increase in the single-family market, the local apartment sector is likely to remain an attractive option for both residents and investors. Although rents rose only 1.6 percent year-over-year, several submarkets, including many suburban ones, registered strong hikes. This is in part due to a high demand coming from eastern North Carolina residents seeking refuge after Hurricane Florence.
With access to three of the country’s top universities, the Triangle added 30,700 jobs in the 12 months ending in July. The professional and business services and trade, transportation and utilities sectors led employment growth. According to nonprofit Downtown Raleigh Alliance, 47 percent of Raleigh residents have a bachelor’s degree or higher, which is enticing employers in search of highly educated workers. This, in turn, has increased demand for connectivity and public transport development. Local authorities recently completed Union Station, a $110 million-plus multimodal transit center.
The metro had 7,400 units underway as of September, with 2018 completions likely to exceed last year’s 4,660 apartments. With steady development matching healthy demand, Yardi Matrix expects a moderate rent growth in Raleigh-Durham in the foreseeable future.
