The Triangle has surged ahead once again in a new study by the Urban Land Institute and PricewaterhouseCoopers, coming in as the market with the second best real estate prospects in the nation going into 2020.
The report, Emerging Trends in Real Estate 2020, forecasts market prospects in the top 80 cities around the country, ranking top regions based on traditional factors such as size and growth as well as more complex indicators including the ability to withstand changes to changing economic conditions.
This year the Triangle came in at No. 2 in the nation -- just behind Austin, Texas, -- for forecasted success in the coming year. Behind Raleigh/Durham was Nashville at No. 3 and Charlotte at No. 4.
How Raleigh stacks up among top U.S. markets to watch
Here's how Raleigh stacks up among the top 10 U.S. markets to watch, according to the Urban Land Institute's and PricewaterhouseCoopers' 2020 Emerging Trends in Real Estate report.
The Triangle ranked No.1 in homebuilding prospects — just ahead of Charlotte at No. 2.
The report cited the Triangle’s boom in multi-family and suburban office sectors as well as the demand for housing and nearby higher education institutions.
“This market’s concentration of educational institutions — Duke University, the University of North Carolina, North Carolina State University, and several smaller colleges — coupled with the Research Triangle Park, has branded the area as a technology mecca,” the report reads.
The region boasts over 89,000 tech jobs, putting it just third behind Silicon Valley and San Francisco.
Additionally the rise in mixed-use, live-work-play developments has provided communities with new priorities for developing office and retail space -- something the Triangle continues to capitalize on in markets from the North Hills to Cary and Johnston County.
The report found demand for these types of spaces has increased as people across generations look to combat loneliness while the rise of the gig economy has made mixed-use spaces more conducive to workers.
But not all trends are looking up, and among the greatest challenges markets face across the country is housing.
Home prices continue to rise as construction, land and labor costs soar, with some markets seeing a drop in sales as affordability declines.
The Triangle has seen some of this as well, though sales have more flattened than declined, and numerous reports throughout the year have testified to the health of the region's homebuilding industry.
The report also mentions that markets are now late into an expansion cycle and past due for when a correction would normally be expected.
The study is ULI and PwC’s 41st since starting the Emerging Trends in Real Estate report.
Its results are based on three components:
A nationwide survey of ULI’s membership and other real estate industry leaders;
Face-to-face interviews by PwC researchers of more than 500 real estate industry leaders; and
Data gleaned from real estate markets across the country.
The study includes expert testimonies, graphics, statistics and more, sprinkling in the occasional advice on thinking about the passage of time — “time is a stream, not a frozen pond” — along with the occasional literary reference — “The game is afoot.”
The Triangle has risen on the list over the years, with ULI and PwC ranking the region at No. 3 in 2019 and No. 7 in 2017.
Full article HERE
Source: Triangle Business Journal