Market Overview

The Triangle market (Raleigh, Durham, Chapel Hill, and surrounding areas) provides investment opportunities for a broad range of investors. Cashflow properties, and those with prospects for solid appreciation are available. Although I do not encourage investors to purchase property solely based on assumed appreciation, historically, this area has fared well, even during national real estate downturns. This is due, in part, to the broad range of industries that support a solid local economy. The Triangle is unique in that it is home to a 10+ colleges and universities within a 50 mile radius. These include Duke, the University of North Caroline at Chapel Hill, North Carolina State, and several other familiar names. Our industries are diverse, and include biotech, IT, healthcare (Duke Hospitals, the UNC Hospital systems, and the VA hospital system), and Government (Raleigh is the state capital). Between 2010 and 2015, job growth in Wake County, where Raleigh is located, was a whopping 20%. Raleigh has a strong employment base of its own, anchored by government jobs, and many residents commute to nearby Research Triangle Park, in Durham, which is home to more than 200 companies, including Cisco, IBM, and Fidelity. Durham is also home to Duke, and the Duke Hospital System, with is one of the largest employers in the state. Durham is presently undergoing a large-scale revitalization in the downtown and surrounding areas. Raleigh, Durham and the Research Triangle Park consistently rank among the nation's best economies year after year. Unemployment remains low, education levels are higher, and per capita income is high, hence the strong real estate markets, and the solid housing demand. The area is repeatedly ranked by Forbes, US News, and other reputable sources as a desirable area for families and professionals. Recent rankings have placed it high on the list of “Best Place to Live”, “Best Cities for Young Professionals” (Forbes), “Best Big City in the Southeast” (Money), and “Best Places for Business and Careers” (Forbes), among others.

Investment Price Points

Entry Level: $75,000 to $150,000 At present, entry level price-points for starter-home rentals are available in the $75,000 to $150,000 price range. At this price, you can find small starter-homes and townhomes as rentals. Occasional duplexes as well. Much of the local inventory consists of older homes, especially in the downtown areas, so be aware that new/newer construction will carry a premium. Above all else, LOCATION is key, regardless of property type. Mid Level: $200,000 Mid-range rentals fall in the $200,000 price point. Many of these properties are located in desirable areas, with plenty of nearby conveniences and amenities. This price-point will often provide for a detached 3-4 bedroom home or townhome with attached garage. Similar pricing for a 2-4 unit rental property. Upper Level: $275,000+ Upper-end and luxury rentals can be found in the $275,000+ price range. A broad range of multifamily property property is available as well. Given the wealth of industries (hospital, biotech, university/college, government, start-ups, etc…), there is quite a bit of activity in the market for executive rental homes, and for individuals and families moving to the area for work and higher-level educational opportunities. (i.e. graduate school, medical residencies, etc…) These tenants often look for more appealing housing options for their families, and the Triangle has plenty to offer for these types of tenants.