Wake Forest Northeast Community Plan - December 2021



affordability. Home size is one way to maintain housing affordability, but it restricts the diversity of housing choices to mostly entry level homes. Homes in the Northeast Community are older on average than are those in the Town.

• Flex/R&D Market is Stable but not Growing – The Flex category in this submarket is a major player for the metro area. However, this category is currently built out. If a product is conceived that meets a specific target need, there is existing capacity in the submarket to effectively deliver the product. Flex/R&D is not an appropriate target for the Northeast Community. • Development Pipeline – While the

• Residential Sales Prices are

Increasing Rapidly Threatening Housing Affordability in the Study Area – The homes selling in the Northeast Community study area have had an average sales price of $159,539 over the past five years, which was only 48.2% of the Town average price of $331,336. In that regard, homes are still selling at affordable levels and are accessible to moderate income households. However, the potential for Northeast homes to remain affordable in the future is being threatened by annual price changes, which have increased by 48% since 2016 on a per square foot basis. Based on average home sales prices, regardless of building size, average prices have increased from $110,000 in 2016 to $189,000 in 2020, an increase of 72% in five years, which far outpaces the Town’s sells price increases of 19.5% and 21.9% respectively. • Strong Apartment Demand in the Northeast Raleigh Submarket – The Northeast Raleigh submarket will benefit disproportionately from the pending growth rate of the Raleigh metro area. The REIS (Real Estate Information Services) data confirms the socioeconomic findings that the Wake Forest area is a destination. • Office Market Demand is Weak in Wake Forest – There is not a sufficient demand to build new office space in the US-1/Capitol Boulevard Corridor submarket, which is the closest REIS office submarket to the Northeast Community.

REAL ESTATE MARKET ANALYSIS 1.E The Real Estate Market Analysis examines recent trends in the North Wake County real estate submarkets that are shaping the Town of Wake Forest and the Northeast Community. Where possible, data that is specific to the study area was obtained and analyzed, but in most cases, the secondary data obtained for this analysis represent larger submarkets that overlap with the study area. The purpose of this analysis is to understand the market context with regard to future changes that might occur in the Northeast Community and how existing trends have the potential to impact the area – both positively and negatively. Similar to the Demographic and Housing Analysis section, the study area was compared in its larger context whenever possible, whether that be a larger submarket or the Town of Wake Forest as a whole. This section includes an analysis of the following market segments: (1) ownership housing, (2) multi-family rental housing, (3) retail, (4) office and (5) industrial flex. Industrial flex is a special category of industrial use that combine production, assembly and warehousing with office and showroom/ retail space, depending on the operation. It is the type of space typically occupied by operations such as small manufacturers, brewers, artists, auto shops, and cabinet makers, as examples. Major findings, key issues, as well as implications of the findings are included in this section. For additional real estate market data and analysis, please refer to Chapter 4: Appendix.

Town of Wake Forest is experiencing an active development market, the Northeast Community has seen less development interest. There is

currently a 14-home subdivision being constructed on Perry Street. Growing development momentum over the past decade in Wake Forest could impact the Northeast Community. Traditions, a residential community, is adjacent to the Northeast Community and is adding hundreds of new households to this part of town. • Retail Market has Capacity for Growth – The analysis determined that there is the potential for millions of dollars in retail spending annually that can be recaptured within or adjacent to the Northeast Community. This translates into approximately 58,500 square feet of retail space in the study area. While not all of this retail space is adequate to attract new businesses it may create opportunities for existing establishments to expand their businesses. As the three mile radius of the study area is being supplied with retail, any considerations for the neighborhood should be targeted to specific needs and gaps in service. There are shopping needs in the Northeast Community that are going unmet. Retail categories that could support more building square footage include: furniture stores (8,821 SF) and home furnishing stores (3,340 SF). Drinking

MAJOR FINDINGS • Northeast Community Primarily

housing development – only 15.7% (81 properties) of the residential properties have been developed over the past 20 years. By way of comparison, almost 73% of the Town’s 13,320 residential properties have been developed since

Consists of Single-Family Homes, but is More Diverse than the Town Housing Stock – Roughly 88% of all residential properties in the study area are single-family homes, with only 6.2% mobile homes and 5.4% duplexes. Surprisingly, this is more diverse than

2000, which is 4.6 times the rate of the study area. Most of this new development consists of primarily single-family homes. • Northeast Community’s Small

the Town’s residential base, which consists of nearly 98% single-family home properties. • Northeast Community Lacks Momentum for New Housing Development – Since 2000, the study area has seen very little new

Housing Size and Older Homes are Contributing to Affordability - The age of the study area housing and its relative size (half the average size of the Town’s housing) leads to greater

Chapter 1: Existing Conditions

Northeast Community Plan



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