Rent Gains Negative, Construction Steady
Raleigh–Durham closed the year with rent movement in negative territory, while construction was still solid. Rents were down 0.7% on a T3 basis through December, to $1,553, according to the latest Raleigh multifamily market report. Growth also declined on a year-over-year basis, at -2.9%, while the U.S. average multifamily rate marked a 0.3% increase.
As of October, Raleigh–Cary had an unemployment rate of 3.0%, well below the national and state averages, according to Bureau of Labor Statistics data. The metro’s workforce grew by 41,600 positions with the leisure and hospitality sector leading expansion, up 9.4% year-over-year. However, the education and health services sector had the largest increase in absolute numbers, adding 10,900 jobs. As part of an $8.2 billion funding package for 10 major passenger rail projects nationwide, the North Carolina Department of Transportation secured $1.1 billion in federal grants. This funding will facilitate construction on a project that will eventually connect Raleigh to Richmond, Va.
In December, the metro’s new-development pipeline included 28,487 units under construction as well as 107,000 units in the planning and permitting stages. Meanwhile, on the transaction side, multifamily sales in Raleigh–Durham amounted to $1.7 billion in 2023, marking a 59% drop compared to the prior year’s sales volume.
Read the full Yardi Matrix Raleigh Multifamily Market Report: February 2024
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