The Raleigh-Durham real estate market is continuously growing. Residents of Raleigh, Durham and Chapel Hill don’t need anyone to tell them what their region’s strengths are. They’re quite pleased to be living in an area with a lot of rich cultural amenities, ranging from beautiful green spaces to a growing art and music scene to one of the nation’s healthiest economies and most affordable housing markets.
A growing number of newcomers are recognizing that as well – but it’s not just the newcomers who have been flocking to the city, a key reason why Raleigh’s population is surging.
But there’s another group that’s taken notice of Raleigh’s economic strength, thriving housing market and burgeoning arts and cultural scenes – and that’s investors. One of the best indications of a region’s strength is gaining the trust and confidence of those looking for safe places to make sound long-term investments.
And Raleigh’s emerging strengths – the fact that home prices here are expected to rise by 26% in the next three years, while jobs are projected to grow by 5.8% – have given the region a major boost over other parts of the country when it comes to investments in the housing market.
Why is Raleigh Considered a Great Long-term Investment?
While it’s difficult to accurately predict where a city or region is headed in the next decade or two, the Greater Raleigh-Durham area has been performing so strongly in the past few years that the region was recently listed among the “Best U.S. Housing Markets for Investing,” according to a report by Local Market Monitor.
That quarterly publication, which analyzes U.S. housing markets, concluded that the Raleigh-Durham real estate market in that tri-city region will continue to lure in new residents every day thanks to its strong job growth and high quality of life.
That helped to make the Greater Raleigh-Durham area among the most enticing U.S. housing markets, thanks in no small part to a booming economy and housing prices close to the national average – a key measure of affordability.
As Local Market Monitor noted, real estate investing works best as a long-term strategy, where staying in for the long haul helps maximize profits.
The publication concluded that there were eight top housing markets in the country offering wise investment choices with the potential for decades of profits. Those eight cities were cited for having strong growth trends, including job growth.
Raleigh-Durham was ranked as the #3 top region for real estate investors, behind only Ogden, Utah and Orlando, Florida. Local Market Monitor noted this is a particularly good time to invest in real estate in the Raleigh area, since home prices are not as high as other cities, and that could lead to an even bigger value jump in the long run.
What are The Region’s Biggest Strengths?
The Raleigh metro area experienced an 18.1% increase in population from 2010 to 2017, according to the U.S. Census Bureau, and now has a population of more than 1,335,079. A key reason for this is because Raleigh is considered to be one of the best cities in the nation to find a job.
In fact, the website Glassdoor ranked Raleigh as the number 8 city in the country for jobs, thanks to a large number of job openings (49,003), median base salary of $50,000, and median home values around $255,000.
Part of that has been the ongoing success of Research Triangle Park, which plays a key role as an economic engine for the entire region. RTP helps attract a lot of young people, families, and aspiring entrepreneurs to the Raleigh/Durham metro area, and they’re finding a high quality of life here – in a city with a strong sense of community.
And there’s a lot to enjoy here.
Southern Living magazine ranked Raleigh among the South’s top 10 tastiest towns, with more than 1,200 restaurants in the area, offering something for all taste buds.
Raleigh is also known for one of the hottest craft beer scenes in the nation. With 366 beers on tap at the Raleigh Beer Garden, the city has actually surpassed Munich, Germany for hosting the largest beer garden in the world. And Raleigh is home to some of the best craft beer in the world, including local breweries like Raleigh Brewing Co., Trophy, Crank Arm, Big Boss, and Lonerider.
These and other cultural amenities – from a large number of family-friendly museums to a thriving music scene – are major reasons why U.S. News & World Report has ranked Raleigh-Durham among the top 14 Best Places to Live, and Best Places to Retire.
For a lot of residents, Raleigh is a city with everything they need – from job growth to affordable homes to an exciting cultural scene – but is still a city that manages to offer an enjoyable small-town vibe. Apex, N.C., a suburb of Raleigh, recently got ranked as the #1 Best Place to Live in the United States by Money Magazine.
How is the Raleigh-Durham Real Estate Market Performing?
According to Zillow, the national database for real estate and rental properties, the median home value in Raleigh is $265,900. That figure is on the rise; values have gone up here by 5.9% over the past year.
Despite that, the Greater Raleigh-Durham area has some of the most affordable homes in the nation.
The median price of homes currently on the market in the Raleigh area is $340,000, while the median sales price has been $251,700. Likewise, the median home value in Wake County is $284,300, and those values have risen 5.5% over the past year, Zillow reports. The median price of homes currently listed in Wake County is $352,900, while the median price of homes that sold is $268,900.
Those are good numbers, particularly when compared to the sky-high housing prices in cities like Los Angeles, Seattle and New York City.
In fact, Zillow recently gave Raleigh the #2 spot in this year’s Hottest Housing Markets for 2018. This extends throughout the region. Anyone shopping for homes in Cary, Apex, Holly Springs or other communities in the Raleigh area will be able to enjoy easy access to the city at an affordable price.
Zillow’s list, based on rising home values and steady income growth, landed Raleigh second only to San Jose, California. As Zillow noted, growing cities like Raleigh provide an excellent jobs market with a less expensive cost of living than other major metro areas. Zillow also noted that this was definitely the year to invest in the Raleigh housing market.
Interestingly, LendingTree did a separate study and found that Raleigh was among the cities with the highest levels of financially responsible residents.
Using data from August 2018 and average household income figures from the latest Census Bureau count, the LendingTree analysis found that San Jose, San Francisco and Raleigh topped the list of cities where people are living within their means.
Raleigh got a major boost in that area thanks to the housing market, which has given city residents a modest mortgage-to-income ratio.
So with a healthy economy, fast-growing jobs base, and an affordable and attractive housing market, Greater Raleigh-Durham has truly demonstrated why it’s the ideal place for investments in the real estate market.
The Greater Raleigh-Durham area is continuing to grow at a rapid pace because so many people are discovering what longtime residents already know:
- This is the place to go if you want a good job
- A beautiful home within your price range
- And plenty of terrific cultural attractions.
This is a region on the move, and it’s been nationally recognized this year for being a sound and proven area for wise real estate investments.
If you’re relocating to this area, have lived here a while and are ready to buy your first home, or are thinking about retiring here, contact us at Waterford Green Communities.
Our team of experienced home builders and community development professionals take a lot of pride in building homes in this region that are immaculately designed, appealing to families of all sizes, and won’t be a problem matching your budget.
Our team designs homes with the highest quality materials, and we believe that every family deserves a beautiful place to call home.