Raleigh 2Q23 Multifamily Market Insights Report: Renter demand is elevated but lagging new supply growth

Highlights:

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• Despite continued upward pressure on the local vacancy rate, operators in Raleigh-Durham pushed rents higher to this point in the year. Multifamily developers are active, with more than 23,500 units currently under construction in the region.
• Local vacancy rose 40 basis points during the second quarter, reaching 7%. Year over year, the rate is up 190 basis points.
• Asking rents in Raleigh-Durham pushed higher during the second quarter, increasing 1.8%. Year over year, rents have dipped 0.4% to $1,619 per month.
• The local multifamily investment market has had a slow start during the first half of 2023, with deal volume down from levels recorded last year. The median sales price year to date is $189,600 per unit, while cap rates are averaging approximately 5%.

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