August 22, 2022

Raleigh-Durham Q2 Multifamily Market Insights: Pace of Rent Growth Accelerates in 2Q

Highlights:

Strong demand drivers are fueling the Raleigh-Durham multifamily market. Rents and sales prices continue to push higher at rapid paces, even as vacancy has trended higher.
Vacancy rose 20 basis points to 5.1 percent in the second quarter. This was the third consecutive quarter where vacancy trended higher, following three straight quarters where the rate tightened. The current vacancy rate is still lower than the market’s long-term average.
Rents in Raleigh-Durham continued to rise at a rapid pace in the second quarter. Asking rents reached $1,626 per month at midyear, up 16.8 percent year over year. Some of the strongest rent growth was recorded in the past few months; rents rose 5.9 percent in the second uarter alone.
Sales velocity during the second quarter accelerated from levels at the beginning of the year, and prices rose. Transaction counts in the first half are up nearly 30 percent from the same period in 2021. The median price year to date has reached approximately $243,500 per unit, 21 percent higher than the median price in 2021.