How is Raleigh real estate market currently? Referring to many data and sources, Raleigh is always included in the list of top 5 cities to live in North Carolina. Particularly, it is for those of you who always prefer living in a big and crowded city.
The city is a part of the Research Triangle of the state along with Chapel Hill and Durham as well as it is also the capital city of North Carolina. Public facilities in Raleigh are also considered one of the best mainly if we talk about the education thing. You will find some of the best universities in the country, making many students throughout the US and even the world to come.
Compared with many other big cities in NC and the US, in general, the living cost in Raleigh is also relatively low. In addition, it also provides you with many attractions. The nightlife has developed very rapidly recently although it is too far if you compare the city with New York or Texas.
Based on the facts mentioned above, it is not exaggerating to say that Raleigh is a good choice for real estate and property investment. While currently, the city may be still less popular than others, it seems not to be too long. At least, the Raleigh real estate market shows a positive tendency and that’s why you should consider this place as saving for a better future.
A Brief History of Raleigh’s Real Estate Market
The trends of the real estate market in previous years are very important to analyze to know if in 2022, it is a good idea or not to invest in property in Raleigh. Well, history is a good tool for investors to assess the performance of the market in a certain area in the future. Meanwhile, affordability is another method to predict whether it is good or not to invest in property for rental in Raleigh.
Based on the index of the housing price published by Freddie Mac monthly, it is possible to track the change in the property price average from year to year. So, from the year 2016 and the year 2021, the HPIs are 148.9 and 240.7 respectively.
It means that the change in the house price from the 5 years is about 61.7%. Well, it is quite high as it is even above 50%. If it is calculated in detail, the yearly change of the price can be determined also, it is about 24.3% and the monthly change is 1.7%.
Not only Freddie Mac, one of the famous property and investment publishers, but Kiplinger also publishes the same historic data to predict the Raleigh metro population and real estate market in the future. For the data obtained, Kiplinger uses the service of ATTOM data to compile the changes as well as the affordability.
As information, the affordability ranges from 1 to 10. The lower it is, it means the house is more affordable. While the range is important, the investor must also pay attention to the fact that people may prefer renting a house to buying it even in the most affordable market.
So, based on the research from Kiplinger, what is the history of the housing market in Raleigh? The peak of the Real estate market cycle in the city is in May 2006. The median home price Raleigh NC at that time increased up to 37.9%. Then, the drop in the cycle happened in March 2012. It was followed by the next increase which was topped at 54.4% in 2021. The data also showed that Raleigh had an affordability index of 6 out of 10. It means that the metro area of the city was the more expensive area to buy a house than in the suburbs.
Population and Growth in Raleigh, NC
The significant increase in population in Raleigh is one of the main reasons why the real estate market trend tends to be positive. In the past 10 years, the population of the city has grown up to 25%, it will reach 467,665 in 2020. Meanwhile, based on the sensor data compiled by a real estate blog, Commercial Café, the average increase is 19,166 per year from 2015 to 2019.
Most of the comets come from some cities around such as Durham and Charlotte. But interestingly, many newcomers are also from big cities like New York. There are many opinions about why people from New York prefer moving to Raleigh, a city that is relatively smaller than what they come from.
First, it is because the cost of living in Raleigh NC is indeed quite low, moreover, when it is compared with New York. Second, they come to Raleigh for purposes like studying and the office. They still cannot move on from the rousing of New York and Raleigh is considered the best choice in North Carolina.
Meanwhile, a few comers are immigrants from Europe, Asia, and Africa who want to study at Raleigh’s universities. There are around 10 traditional universities and colleges in the city and some of them are enlisted to the top universities in the US and the world. You can mention them like North Carolina State University, Meredith College, and William Peace University.
That number of comers along with their reasons to come is the main reference that the growth of Raleigh population will still develop in the future. It also shows that the capital city of North Carolina is a comfortable place to stay.
Well, even if you take a look at the Census data, most people who move out from Raleigh choose places not too far from it. The top 3 destinations are Durham, Charlotte, and Fayetteville. For the rest, they move out to other big cities like New York and Los Angeles for jobs or to achieve a different lifestyle.
Raleigh, NC Real Estate Market Trends
Raleigh may not be the best for the real estate market in North Carolina. For so long, it has been overshadowed by its neighbor, Charlotte. Undeniably, Charlotte’s market is indeed bigger and it looks more promising. Moreover, some years ago, the housing market in Raleigh was once burnt at its record of the highest price.
But interestingly, that high price was not bad. It was even managed in such a way to be developed significantly in 2022. And the expectation seems to come true. The Raleigh NC real estate market is in the third rank of the hottest markets this year, based on the latest study.
Only in a few years, the value of houses and real estate in the state’s capital city improved by more than 24% with an average price of more than USD 450,000. It is also in line with the forecast that the best cities in the US for property investment in 2022 are located in the Sunbelt area.
As the capital city, Raleigh is the Metropolitan Area of the state. It is also known as the second biggest city in North Carolina as well as a house for more than one and a half million people. The property market in the city is centered in the metropolitan area and the development is currently seen in the suburbs.
So, here is the detail of the condition of the Raleigh real estate market from 2022 so far until the mid of the year. Some points decreased from the previous years but they did stop the others to improve.
- The sale decreases from 1,882 to 1,694 or 10%,
- The median sale increases from USD 360,500 to USD 450,000 or 24.8%,
- The price of the sale increases from USD 421,589 to USD 527,567 or 25.1%,
- The inventory of homes for sale decreases from 1,255 to 775 or 38.3$,
- The supply of the inventory decreases from 0.6 to 0.4 or 33.3%.
Based on the data above, if you are a property buyer who looks for a new place to live in Raleigh, you must go to a smart and trusted real estate investor for a strong ROI. Then, make sure to consider all the real estates and houses offered.
Raleigh, NC Real Estate Market Forecast
The Raleigh real estate market, generally, is favorable for investors and landlords for its friendliness. Well, it has a big number of renter population and the future seems to be good whether for the short or the long term. Around a decade later, it is predicted that the demands for house and apartment rentals are still high. So, offering high costs for renting is not a sin but it still depends on the location and the condition of the property.
Next year, it is also forecasted that the values of real estate in the metropolitan area will increase by at least 24%. It may be a little bit lower than the increase of the value this year, it is 25.1%. So, the average price will be above USD 540,000. The number is almost the same as in other areas such as Florida or California.
There is a fun fact about the high demands of property in the future, it is related to the involvement of Apple Inc. The increase of the Raleigh Durham real estate value is very possible to happen after Apple announced that the company will open its first east coast campus in Wake County, North Carolina. It creates 3,000 new jobs and the company may invest more than USD 1 billion in the research area.
Well, as Apple brings around 3 thousand jobs with high salaries, it means that the company participates in developing the state. As a result, prices of local properties will increase also. The new employees may come from the area of North Carolina and outside. Landlords should prepare themselves since the demands for home rentals will significantly increase also.
While people who live in North Carolina may prefer renting to buying, there must also be a high chance of an increase in demand to buy houses or apartments. So, Raleigh home prices will also generally increase significantly in the future. That’s why, before that trend happens, it is a good idea to buy it now.
Wake County may be considered as a suburb of Raleigh. But the distance of it to the center of the city is relatively short. It takes only around 11 minutes by driving a car. The county is also quite easy to reach from other suburbs such as Garner, Clayton, and Holly Spring. In case buying properties in the metropolitan area seems really expensive, investing in one of the suburbs is a good idea to do.
FAQs
- Will housing prices go down in Raleigh?
No, it is not. The property prices are proven to increase recently and in 2022, the trend continues like that. Based on some property market forecasts, Raleigh’s houses and apartments are still good investments as the prices will continuously increase in the future. Even for the next year, it is predicted that the increasing percentage is around 24%
- Is Raleigh a good place to invest?
Yes, it is. The current Condition, the history, and the forecast of the Raleigh property market show the price increase trend. Of course, there are some times when the prices have dropped, it is in 2012. But it is just a minor case. From 2021 to 2022, the trend is rising and it is predicted to continue for some years later.
- Is now a good time to buy a house in Raleigh?
Yes, it is. Currently, people prefer renting to buying because the buying price is relatively low. However, the trend can be changed in the future by some factors. One of them is due to the plan of Apple Inc to open its new campus in Wake County. While the rental price will continue rising, the buying price can be like that as well.
- Is it better to rent or buy in Raleigh?
From a financial standpoint, buying is better than renting in terms of Raleigh housing. It is because prices for both selling and renting are predicted to continuously increase in the future. But if you only live in Raleigh for some years only, renting can be the best decision. It is to avoid any complications of the home sale or maintenance in the future when you are not in Raleigh anymore.