Fueled by a strong economy and sustained demographic expansion, the Triangle’s multifamily market remains one of the fastest-growing major metros in the U.S. Only two West Coast markets outperformed Raleigh (5.1 percent) in year-over-year rent growth this year through October. However, the metro is still affordable, with its $1,228 average rent heavily trailing the $1,476 U.S. rate.
Job growth was broad, with education and health services accounting for almost a quarter of the 24,800 jobs gained year-over-year through September. Several projects could further boost the sector: Skanska started work on the $257 million UNC Hospital Surgical Tower in Chapel Hill. In addition, millennials continue to be attracted by the Triangle’s large concentration of universities and tech companies such as Red Hat and IBM. Demand for office and R&D space is on an upswing and several mixed-use projects such as Longfellow’s 1.7 million-square-foot Innovation District are catering to the growing needs of the Triangle.
Development activity continued at a high rate in Raleigh-Durham in 2019. With more than 4,700 units completed in the first 10 months of the year and an additional 9,224 under construction as of October, Raleigh-Durham’s multifamily sector is slated for a strong 2020.