Raleigh Multifamily Report – June 2024
The recent glut of deliveries created some short-term oversupply.
Raleigh-Durham’s multifamily market displayed a more subdued performance, likely impacted by the cooling economy. Advertised rents were down 0.1 percent on a trailing three-month basis, to $1,548, 40 basis points lower than the national rate, with Yardi Matrix predicting a 0.6 percent contraction for the year. The average overall occupancy rate in stabilized properties decreased by 50 basis points year-over-year, to 93.6 percent, with the Renter-by-Necessity segment recording a sharper, 70-basis-point decline.
The job market in the Research Triangle expanded by 2.6 percent in the 12 months ending in February, adding 27,400 net jobs. The metro’s growth rate was 110 basis points above the national average. Education and health services led gains with 8,900 jobs. The area’s jobless rate stood at 3.3 percent as of March, 50 basis points below the U.S. figure. FujiFilm Diosynth Biotechnologies plans to add 1.3 million square feet to the Triangle with the development of a CDMO facility. With a $1.2 billion investment in the project, plans include adding 680 jobs by 2031.
With 3,013 units, or 1.6 percent of existing stock, delivered through April, the metro outpaced the nation by 100 basis points, although construction starts significantly declined from the beginning of the year. Transaction activity remains scarce, with only $250 million in assets changing hands, in line with a decline that began in 2022.
