MARKETS & TRENDS
HOT MARKET
Market Spotlight: Raleigh-Cary, NC
HIGH-TECH HOTSPOT
by Fred Heigold III with RentRange® - A leading provider of market data and analytics for the single-family rental industry
INDEXEDVALUES –VS– JOBS & INCOME
he Raleigh-Cary, NC market is a rapidly expanding, mid-sized metro with excellent economic prospects. The pandemic has triggered a tech migration away from expensive areas in California and New York, and Raleigh’s Research Triangle is a prime target for tech-centric companies looking to relocate to an area with low cost of living and a large talent pool. Raleigh’s strong economy helped the region claim the #1 percentage population increase according to the lat - est Census numbers, highlighting its desirability. These trends are supporting a thriving housing market with very strong momentum for 2021, with limited downside risks. The Raleigh housing market was ranked #1 by the PwC and Urban Land Institute’s “2021 Emerging Trends in Real Estate” report, beating Austin, Nashville, Dallas, and Charlotte. HOME PRICEMETRICS Home prices in Raleigh have been rapidly increasing from late spring through the end of 2020. As of January 2021, median prices rose to $315,000, an 8.5 percent year- over-year increase. Median price for condos and townhomes was up only 3.1 percent YoY, illustrating the market preference for sin - gle-family homes. Single-family rental (SFR) owners in Raleigh have realized a steady five-year increase of 34 percent and a 10-year price appreciation of over 48 percent. T
Raleigh-Cary NC 15-Year Index: 2005 to Current
55%
50%
Legend
Employment Change Household Income
45%
Home Value Rental Price
40%
35%
30%
25%
20%
15%
10%
5%
0%
2006
2008
2010
2012
2014
2016
2018
2020
Raleigh MSA Home Price Forecast through 2021: +6 per- cent to +8 percent There are many positive signs for the Raleigh mar - ket for 2021 and beyond with multiple factors driving the market momentum. Historically low mortgage interest rates, historically low inventory, high inward population migration, economic growth in high-wage job sectors, and consumer preferences towards sin - gle-family homes point to above-average home price increases for years to come.
74 | think realty magazine :: april 2021
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