Feb 28, 2024 - News

Rents fall in the Triangle as surge of new apartments open

Change in asking rent by apartment type, Q4 2022 to Q4 2023
Data: CoStar; Note: CoStar rates multi-family buildings on architectural design, structure, amenities, site and certifications; Chart: Alice Feng/Axios

After skyrocketing during the pandemic, rent prices are beginning to come back down.

Why it matters: Raleigh renters might catch a break this year. (You read that right.)

  • Raleigh rent was down for both average and upper crust apartments at the end of 2023.

Driving the news: Apartment construction hit record highs across the country in the past year — but Raleigh's stood out nationally for how much supply was coming on the market.

  • That's helped cool prices.

By the numbers: Nearly 11,000 new apartment units were expected in Raleigh last year, up a whopping 210% from 2020, and one of the largest supply surges in the U.S.

  • Vacancy rates in the Raleigh market grew from 8.8% in the Q4 2022 to a projected 12.2% in Q4 2023, as more buildings opened, according to data from Cushman & Wakefield.
  • But with prices starting to fall, that apartment boom could be slowing down. Construction permits for multifamily units in Raleigh declined last year.

Zoom in: Luxury renters get to breathe the biggest sigh of relief. High-end rents were down 3.5% from the last quarter of 2022 and the last quarter of 2023, compared to 1.4% for middle-tier rents, data from real estate firm CoStar Group shows.

In response to the increased number of apartments opening, some landlords are offering significant deals to new tenants — mainly at newer, high-end buildings.

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