- Following a year when completions were down 50 percent from the market’s long-term average, apartment construction gained momentum in Raleigh-Durham during the first quarter of 2022. The increase in deliveries pushed the vacancy rate higher, although the region’s rapid job growth should cause absorption to gain momentum in the coming quarters. Rents have continued to trend higher at a rapid pace.
- Vacancy reached 4.9 percent during the first quarter, rising 70 basis points from the end of 2021. Despite the recent increase, the current figure is still 50 basis points lower than the rate one year earlier.
- Area asking rents rose 3.9 percent in the first quarter and have increased by 21.6 percent year over year, reaching $1,536 per month.
- The pace of sales to start 2022 increased compared to levels from one year earlier. Sales were concentrated in larger deals with newer properties, pushing the median price to $243,500 per unit. Properties that traded in the first quarter generally had cap rates between 3.5 percent and 4 percent.