Raleigh-Durham Q4 Multifamily Market Report: Ongoing job growth spurs apartment development

Highlights:

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• Conditions in the Raleigh-Durham multifamily market continued to cool during the last few months of the year, as vacancy trended higher, and asking rents fell. Multifamily developers remain extremely active throughout the region.
• The local vacancy rate continued to push higher during the fourth quarter, rising 50 basis points in the last three months to 5.8 percent. In 2022, the rate rose 160 basis points, after tightening by a similar figure in the previous year.
• Asking rents dropped 2 percent during the fourth quarter to $1,571 per month. Despite a modest decline at the end of the year, asking rents advanced 6.3 percent in 2022 and are forecast to inch higher in the year ahead.
• Multifamily sales activity slowed during the fourth quarter, reaching its lowest level of activity in more than two years. The median sales price in 2022 was $240,400 per unit, up 22 percent from the median price in 2021.

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