Raleigh's economy keeps on ticking
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Raleigh's economy continues to show strength heading into the second half of 2026, even as hiring growth slows nationally, according to a new report by PNC Bank's regional researchers.
Why it matters: Hiring in the Raleigh-Cary metro area grew at the 6th-highest rate among all metro areas to start the year, according to PNC, despite it being only the 50th-largest metro area in the country.
- Between the lines: Durham is not counted as part of the Raleigh metro area by the U.S. Census, a fact that has long frustrated local economic developers.
Driving the news: The remarkable aspect of the job growth in the greater Triangle, PNC researchers say, is that it is not reliant on one industry. Rather a diverse set of industries are showing growth, including education and healthcare, professional and business services and leisure and hospitality.
- That broad spectrum means that more workers will benefit from wage growth.
By the numbers: The Raleigh metro area's job growth for the six months through May 2026 was 2.3% on an annualized basis. A rate higher than 99% of metro areas.
What they're saying: "I don't want to call Raleigh a unicorn, but in current terms, a lot of local economies are specializing [in certain industries] and therefore becoming high-tech markets or financial centers," Kurt Rankin, a senior economist at PNC, told Axios.
- "To have a well-rounded local economy is a rarity these days, and to have one that's firing on all cylinders is rarer," he added.
Zoom in: Rankin called out Raleigh's job growth in leisure and hospitality as especially noteworthy. He noted that sector's growth in Raleigh was stronger than other prominent regional metro areas like Washington D.C., Atlanta, Nashville and Charlotte.
- "The fact that Raleigh boasts stronger growth than comparable economies implies that local households are comfortable spending back into the local economy, which creates a virtuous cycle of income growth and spending growth across all segments of the income spectrum," Rankin wrote in the report.
The big picture: In welcome news for the Triangle, the Durham metro area appears to be showing job gains again.
- The Durham metro area experienced an overall job loss last year, as research and international aid funding cuts in Washington reverberated across the area.
- Those losses appear to have bottomed out, and the area experienced job gains in the last quarter, according to PNC research.
The intrigue: Despite the job growth, however, the Raleigh area has continued to post several months of home value decline.
- Raleigh's Cotality Case-Shiller House Price Index — a home value measure published by CoreLogic — is down by 1% compared to last year, while the national index has grown 0.8%.
- If the job growth in the area continues, Rankin said, then the area's housing market could be poised to bounce back soon.