Raleigh Multifamily Report – February 2023
The Triangle is not immune to the nationwide slowdown.
With consistent investment, the Triangle’s economy remained robust in 2022, keeping the metro’s multifamily market up and running. Year-over-year, rents were up 7.0 percent, 80 basis points above the national rate. However, the metro was not immune to the overall economic slowdown that became increasingly apparent as the year went on. In the last quarter, rents in Raleigh-Durham contracted by 0.4 percent to an average of $1,618, while U.S. figures also contracted by 0.2 percent, to $1,715.
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The Triangle’s employment market saw 4.3 percent year-over-year growth through October, having added 44,900 positions. Job expansion was led by professional and business services (16,600 jobs), followed by leisure and hospitality (10,200 jobs). Manufacturing—which added 2,500 positions—is set to receive a boost from one of the largest economic projects in North Carolina history. Semiconductor maker Wolfspeed intends to expand its presence in the state with a $5 billion investment in a chip plant in Chatham County. The plant is expected to create more than than 1,800 new jobs by 2030.
Investor interest in the metro’s rental sector remained elevated, with $4.1 billion in multifamily properties changing hands in 2022. That followed 2021’s record $5.5 billion total investment volume. On the development side, activity moderated, as it did across most of the country. Only 4,642 units came online in 2022, marking a 32.8 percent decline from the previous year.