Rents fall in the Triangle as surge of new apartments open
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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.
- This bucks the national trend of regular rents rising.
- Yes, but: Thanks to the run up during 2020 and 2021, rents are still high for many low-income renters.
In response to the increased number of apartments opening, some landlords are offering significant deals to new tenants — mainly at newer, high-end buildings.