Raleigh 4Q23 Multifamily Market Insights Report: Class A properties likely to continue to change hands in 2024

Highlights:

• Following a fairly strong first half of the year, operating conditions in Raleigh-Durham softened during the fourth quarter. The vacancy rate rose while asking rents dipped lower. Supply-side pressures pushed vacancies higher despite healthy renter demand.
• Vacancy rose 50 basis points in the last three months of the year to 7.5% and the rate pushed up 170 basis points for the full year. The market’s long-term average vacancy rate is between 5.5% and 6%.
• Asking rents trended lower in the second half of 2023 after posing healthy rent gains in the opening six months of 2023. Apartment rents inched higher by 0.1% in 2023, closing the year at $1,573 per month.
• Although annual sales in 2023 lagged levels recorded in 2022 by 50%, sales activity began to build some momentum in the second half of the year. With several new construction properties changing hands, the median price was $251,900 per unit in 2023.

Read the report, or engage with our Raleigh office to learn more.