Raleigh-Durham Q1 Multifamily Market Report: Renter Demand Fueled by Ongoing Business Attractions
Highlights:
- Multifamily fundamentals in Raleigh-Durham got off to a strong start at the beginning of the year. As the pace of deliveries slowed, rents spiked and vacancy tightened.
- Apartment vacancy declined 50 basis points in the first quarter of 2021, falling to 8.5 percent. Additional tightening is expected in the coming quarters.
- After advancing 1.3 percent in 2020, rents surged in the first quarter. Local asking rents increased 3.1 percent from the fourth quarter reaching $1,263 per month.
- Following an extremely active year in 2020, sales velocity slowed at the start of 2021. In sales that closed during the first quarter, the median price was $157,600 per unit, while cap rates averaged 4.6 percent.
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