Raleigh-Durham’s healthy multifamily market is underpinned by strong population and job growth, a solid development pipeline and attractive business climate.
The metro added roughly 19,000 jobs in the 12 months ending in February. Employment growth was substantial in professional and business services, which added 5,700 jobs. Transportation and construction added more than 7,000 jobs combined over the same period, boosted by several large-scale projects such as the 22-story FNB Tower underway in Raleigh. Austin Lawrence Partners’ One City Center in downtown Durham is also nearing completion. Home to multiple academic hotspots, North Carolina’s Research Triangle is constantly growing its highly educated workforce, fueling the local tech industry. Raleigh is second only to San Francisco for sheer number of jobs in the technology sector. With reasonably priced housing options and diverse employment opportunities, the area particularly attracts Millennials because of its low cost of living.
Development activity remains robust, with roughly 8,600 units under construction as of April. Almost two thirds of these are scheduled for completion in 2018. This year, 1,100 units had been delivered as of April. Yardi Matrix expects a 3.5 percent rent growth by the end of 2018.