Raleigh is a thriving part of the Research Triangle region, which encompasses Raleigh, Durham, and Chapel Hill. As the capital of North Carolina and a rapidly growing city, Raleigh consistently attracts plenty of attention from both residents and investors. With its lively atmosphere, strong job market, and endless amenities, the Raleigh housing market is highly sought-after and promises plenty of potential. Read on to dive into the current state of the Raleigh real estate market and provide a forecast for what lies ahead in the rest of 2023.
Sturdy market fundamentals
Raleigh's housing market has been built upon a solid foundation. The city boasts a robust, growing economy driven by sectors like technology, healthcare, education, and government. Plus, Raleigh is renowned for being one of the best places to start a career. This lucrative market has fueled population growth, resulting in increased housing demand.
Steady home price appreciation
The Raleigh housing market has witnessed steady home price appreciation over the past few years. According to the Raleigh Regional Association of Realtors, currently, the average sales price of homes in Raleigh is nearly $760,000. It’s important to note that this is significantly higher than the average price of properties throughout the entire Triangle Region (where the average sales price is around $470,000).
While this upward trend may raise concerns about affordability, it also indicates a healthy and thriving real estate market. Homeowners in Raleigh have seen their investments grow, making it an optimal time to buy or sell in the area.
The high demand for housing
Raleigh is currently experiencing a soaring demand for housing that is surpassing the available supply. This surge in demand has created a highly competitive real estate market, averaging about 625 new listings, an inventory of 387 homes, and listings at only 15 days on the market. Homes in Raleigh are not only commanding higher prices but are also selling at a faster rate than the entire Triangle Region.
Raleigh has experienced significant population growth over the past decade, which has fueled the demand for housing. For example, the city’s population has grown by more than 5,000 since 2020. This increase in population has only fueled the already soaring demand for homes.
New housing construction developments are underway
The booming real estate market and population growth in the region have led to an increase in new construction projects. Many developers and builders are actively constructing new homes to meet the demand of homebuyers in the Raleigh area.
In recent years, Raleigh has seen between 25 and 40 new authorized housing units per 1,000 existing homes. This trend could continue throughout 2023. But that’s not all. The City of Raleigh plans to rezone about 11,000 acres of land, which could be home to approximately 1,800 new properties by 2032.
Neighborhood revitalization and community development
Raleigh has consistently made efforts to revitalize its neighborhoods to attract more homebuyers. In its latest initiative, the city has chosen three areas for community development.
One key area is East College Park, a neighborhood known for its green spaces and access to various amenities. Here, the city plans to develop 98 single-family houses and 51 townhome units. The city will also develop housing for low- and moderate-income families in the Lane-Idlewild area, a historic, tree-lined neighborhood. Lastly, the city plans to build 23 single-family houses in the Martin Haywood area, primarily for first-time homebuyers.
Increased demand for suburban living
Raleigh is one of the most popular cities for remote workers in North Carolina, which has been a growing trend in recent years. As more professionals prioritize flexibility and work-life balance, the appeal of living in the suburbs has grown exponentially. Many remote workers have bought or eyed properties on the outskirts of the city since there is no longer a need to commute to work. Plus, these communities offer a less hectic, more serene atmosphere, perfect for focusing on work without distractions.
Homebuyers who work remotely can enjoy the perks of suburban living, including spacious homes, access to nature, and family-friendly amenities, all while remaining connected to the urban conveniences of Raleigh.
Increase in new townhomes throughout the city
While Raleigh is typically known for its historic colonial and bungalow single-family homes, smaller options are becoming increasingly popular. Whether you’re looking for a smaller space to live in or plan on buying a rental property, you’re in luck. Raleigh is expanding its housing options by building more townhomes and other units in prime locations across the city.
These modern and stylish townhomes are perfect for individuals, couples, and small families who are looking for a balance between affordability and upscale living. Best of all, they’re typically valued at half the price of most of Raleigh’s single-family homes. This makes townhomes and similar units an excellent and cost-effective investment for homebuyers.
Work with an experienced Raleigh real estate agent
Are you in the market for a new home in Raleigh? While the real estate market can be competitive, the city offers plenty of options. Whether you’re looking to upsize or downsize, the expert real estate agents at The Avalon Realty Group are ready to help you find a home that accommodates your family, lifestyle, and interests. Reach out today to get started.
*Header photo courtesy of Shutterstock
