Raleigh Q2 Multifamily Market Report: Vacancy Tightens, Rents Spike at Midyear
Highlights:
- The second quarter was a particularly strong period of multifamily property performance in the Raleigh-Durham area. Area vacancy rates tightened dramatically, and rents surged higher. Investment activity gained momentum. Additional improvement is anticipated in the second half of the year.
- Vacancy fell 60 basis points during the second quarter, reaching 4.8 percent. Year over year, the rate has improved by 110 basis points.
- Strong renter demand and tightening vacancy levels resulted in a spike in area rents. Asking rents ended the second quarter at $1,392 per month, 13.3 percent higher than one year earlier. Rents rose 10 percent during the second quarter.
- Transaction activity doubled from the first quarter to the second quarter, reflecting the current demand in the market. The median price through the first half of the year was approximately $161,300 per unit, and cap rates have compressed to an average of 3.9 percent.
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