Market Report
Raleigh Multifamily Market Report
1Q 2026
Effects of Recent Supply Expansion Begin to Subside,
as Investor Confidence Improves
Rent growth builds momentum as construction slows. In 2026, the rate of change in both supply and demand will ease roughly 15 percent annually, with completions and net absorption returning to their prior 10-year averages. Even as the market finds more balance, rent growth entering 2026 remains subdued. This reflects 2025’s elevated concessions and the lingering effects of the 2023-2024 supply surge, when more than 25,000 units were delivered — expanding inventory by about 15 percent. This may be particularly true of East Durham and Northeast Raleigh, where upcoming openings are limited and greater demand for mid- and high-tier rentals began lifting monthly payments last year. A sharper decline in deliveries this year should allow for greater upward momentum in rents as the market progresses through the recent delivery wave. Some submarkets, however, will still face headwinds from incoming supply, such as the Apex-Cary area, where record completions in 2026 may pressure rents even as vacancy holds near the mid-5 percent band. Conversely, downtown Durham, where openings will drop nearly 90 percent — the steepest annual decline in a decade — could see rents firm later in the year.
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