Raleigh Multifamily Market Report
Growth Expectations Spark Wave of Project Starts;
Lower Tiers Tighten Alongside Last-Mile Facilities
Submarket trio attracts multifamily development boom. Raleigh added households at the fourth-fastest pace in the nation during the yearlong span ended in June. This trend is expected to continue into the long term, as Raleigh is projected to add 18,600 households annually over the next five years. Builders have taken notice and are moving projects forward as a result, as evidenced by the substantial number of groundbreakings during the 12 months ending in June. These projects, which total 13,600 units, are heavily concentrated in Southeast Raleigh, North Cary-Morrisville and South Cary-Apex — submarkets that recorded the metro's highest net absorption figures over the past 12 months. These areas' robust renter demand, and Raleigh's rapidly expanding professional and business services sector, suggests that most of this new supply will be well received, although a near-term rise in concession usage is plausible.