Raleigh apartment construction forecasted to remain strong despite national slowdown
Add Axios as your preferred source to
see more of our stories on Google.
A record half-million-plus new apartment units are expected to be built this year — but the pipeline of future apartment projects nationally is slowing.
The big picture: A rush of new apartments, financed when interest rates were lower, helped recently to ease rent hikes that occurred during the first years of the pandemic, Axios' Sami Sparber reports.
Yes, but: The Triangle's construction activity is still forecasted to grow over the rest of the decade, unlike many of its peer cities.
Between the lines: Several major U.S. metro areas are on track to build fewer units in the coming years than they did during the COVID boom, per a recent analysis by RentCafe.
- Some areas that led the upturn, including Houston, Minneapolis, Dallas and Atlanta, are expected to see the biggest drops in completions between 2024 and 2028 compared to the previous five years.
By the numbers: The Raleigh-Cary metro area, however, is forecasted to open 11,174 more apartments by 2028 compared to the number of rentals completed in the previous five years, nearly a 50% increase, according to RentCafe.
- That is the third largest projected difference among metro areas, only trailing New York City and Phoenix. Charlotte was ranked fourth.
- The Durham-Chapel Hill metro area — ranked 13th in the study — is forecasted to open 3,108 more apartments by 2028, a 35% increase compared to the five years before 2024.
Zoom in: RentCafe's study notes that the Research Triangle continues to benefit from strong job growth in the area as well as many of its university graduates staying after completing their studies.
