Business

Triangle apartment market healthy, research firm says

Posted February 26, 2013

Map Marker  Find News Near Me

— Owning a home used to be considered the American dream, but it appears these days many people are happy to just rent.

In fact, Real Data apartment market research firm says the apartment market remains healthy, citing more than 15,000 apartments that are currently slated to be built in the Triangle. The average vacancy rate is 5.5 percent, the lowest it's been since 1998.

Brian Reece, managing partner of Karnes Research Co., a local real estate market research firm, calls the building pace historic.

The reason, he says, is the economy.

"As a first-time home buyer, you possibly can't get a loan, so you're going to have to live in an apartment," Reece said. "Or you're going to have people trying to sell their home and they can't sell their home."

Downtown Raleigh is a good example of the apartment-building boom.

More apartments being built in Triangle More apartments being built in Triangle

The 195-unit St. Mary's Square, at the intersection of St. Mary's Street and West Johnson Street in Raleigh's Glenwood South district, is expected to open by the end of the year.

A 250-unit project, 425 North Boylan, at the southwest corner of North Boylan Avnue and Tucker Street, also in Glenwood South, is expected to open next year.

And according to the Downtown Raleigh Alliance, 1,205 more apartments are slated to open in 2015.

That alone is a significant increase for the Capitol City, considering no new apartments opened in downtown in 2012.

With more people looking to rent, experts say tenants should expect to pay more.

Real Data says the average rental rate for an apartment in the Triangle is $868 per month, about $34 per month more this year compared to last year.

Reece says prospective renters might want to consider waiting about six months to a year. Prices, he says, are likely to plateau and apartments currently under construction will become available at the same time, meaning renters might be able to find good deals.

7 Comments

This story is closed for comments. Comments on WRAL.com news stories are accepted and moderated between the hours of 8 a.m. and 8 p.m. Monday through Friday.

Oldest First
View all
  • chivegas Feb 28, 11:01 a.m.

    "Yeah, a lot of far righties are longing for the good ole days when folks who could not afford a loan were given one."

    Actually, that started in the Clinton era with CRA. Are banks guilty too, yes. They realized they could make money from shady loans, so they did, but only AFTER they were forced to make said loans when Clinton gave CRA teeth in 96.

  • chivegas Feb 28, 10:59 a.m.

    "Your "short term memory" seems to have forgot greedy banks making bad loans, bundling them together, then selling them as 'good investments'....or you are just "ignorant of the facts in the first place!""

    Conveniently ignorant of the fact that Democrats (Carter, Clinton) not only encouraged risky loans, but forced banks (by law in '96) to give said loans to pass CRA review. Google: "Community Re-investment Act".

    Think for yourself every now and then, don't believe *everything* your party tells you.

  • Minarchist Feb 28, 8:51 a.m.

    TIMEXLIVING....How could we have given all those loans if you didnt keep voting for the unlimited printing press? How could we have bailed them out? You're a Romney liberal arent you?

  • WooHoo2You Feb 27, 7:53 p.m.

    Middle of the Road, You mean when folks who could not QUALIFY for a loan, but were given one anyway. Remember the NINJ (pronounced Ninja - No Income and No Job) loans. This is what help fuel the housing bubble and it's eventually burst in the first place.

    Is it short term memory or you were just ignorant of the facts in the first place?- timexliving

    Your "short term memory" seems to have forgot greedy banks making bad loans, bundling them together, then selling them as 'good investments'....or you are just "ignorant of the facts in the first place!"

  • timexliving Feb 27, 6:54 p.m.

    "Yeah, a lot of far righties are longing for the good ole days when folks who could not afford a loan were given one."

    Middle of the Road, You mean when folks who could not QUALIFY for a loan, but were given one anyway. Remember the NINJ (pronounced Ninja - No Income and No Job) loans. This is what help fuel the housing bubble and it's eventually burst in the first place.

    Is it short term memory or you were just ignorant of the facts in the first place?

  • Mr. Middle of the Road Feb 27, 3:14 p.m.

    'Thanks Obama'

    Yeah, a lot of far righties are longing for the good ole days when folks who could not afford a loan were given one.

  • working for deadbeats Feb 27, 2:24 p.m.

    Thanks, Obama!