Made up of Raleigh, Durham, and Chapel Hill, the Triangle in North Carolina is known for its beauty, research/technology sectors, and, of course, its real estate.
With two of the three cities ranking sixth on US News & World Report’s best places to live, the area’s hot housing market includes a booming rental sector. Furthermore, Rocket Mortgage puts Durham as a 2023 top 25 city for real estate investment, potentially creating a larger piece of the rental pie for real estate professionals to take a bite of.
THE LAY OF THE LAND
Whether you’re a seasoned pro or just starting out, here are some key statistics to keep in mind:
- The Triangle continues to be a fast-growing city with 5,000 residents moving in each month.
- A lot of new residents have relocated from states with higher-priced markets which drives up the price of homes. This raises the cost of entry, especially for first-time buyers, pushing them to rent for longer.
- Economic development is no stranger to the region. In 2022, more than 12,700 new jobs were announced with over $11 billion in new investments. Expect those numbers to continue growing.
- Raleigh ranks 12th for cities where the most homes are being built. Coupled with over 12,000 planned multi-family units, the Triangle’s housing supply (for buying and renting) will hopefully soon start to catch up with demand.
- There are approximately 265,000 rental listings in the Triangle amounting to a median rent of $1,495.
- Renters currently put about 30% of their income toward rent. This marks a 20-year high and an increase of 1.5% since last year.
- The renter-to-buyer conversion potential is estimated to grow to more than $170 million in potential home sale commissions in the coming year.
WHAT DOES ALL THIS TELL US?
With a lack of adequate housing supply and high mortgage rates (although falling), there’s a higher demand for rental units, making it a competitive market for prospective renters. That’s where you, as a real estate sales professional, can really make a difference. There’s an opening in the market for you to grow your rental and homeowners business so now’s the time to advantage of it! Our partnership with Triangle MLS gives you access to tools to effectively market a rental unit and the comprehensive database you need to get a renter into a home.
By building relationships with rental clients now, you’re getting in on the ground floor of their real estate journey. This creates a renter-to-buyer pipeline and the opportunity to tap into millions of dollars of future home sale commissions.