Raleigh

Raleigh is the largest city in the research triangle and the second-largest city in North Carolina. Raleigh ranks as one of the fastest growing cities in the southeast and second in the US behind Austin, TX. Raleigh’s highly skilled labor force has made the Research Triangle the #4 location for Biotech hubs. The area has 790 life science companies and 2,500 related service providers. In addition to life sciences, Raleigh is also home to an Apple and Google Campus.

New unit absorption has remained positive, although lower over the past year than the historical average. Rents in the areas around Raleigh average above $1,600 per month, and downtown has an average of $1,530 per month. At the same time, premium units can go for well above $2,000 per month.

The price per unit has plateaued over the past couple of quarters. However, the demand for multifamily properties in the Triangle continues to keep the cap rates around 4.1, well below the national average. Despite the increase in the interest rate, the investor sentiment toward Raleigh has remained bullish. Raleigh’s jobs market has rebounded faster than other southeastern markets, primarily due to a large number of highly skilled jobs. At the same time, the above-average pool of highly skilled labor is driving corporate investors to the area.