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Triangle surges toward best in nation for 2020 real estate prospects

Triangle surges toward best in nation for 2020 real estate prospects

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, NC Central 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

4 Multifamily Development Trends to Watch in 2019

Changing demographics, shifting social values, and evolving development landscapes all continue to drive a surging, nationwide demand for multifamily housing. With empty-nesters looking to downsize, millennials staying single longer, and a general desire for a more convenient and social lifestyle, more and more “renter-by-choice” Americans are forgoing mortgages for lease agreements.

As demand for new housing units continues to drive the multifamily sector in 2019, developers are tasked with finding new ways to satisfy the growing need for apartments.

Full article HERE

Source: Multifamily Executive

Southeast Multifamily Outlook Holding Strong

Several Southeast markets continue to top national lists for job and population growth, causing investors to pour capital into the region’s multifamily sector as they chase a new wave of demand that’s driving the current market expansion.

ARA and Berkeley Point Capital’s 2Q 2018 United States Multihousing Market Report includes several Southeast hubs among its top 25 for sales volume in the past 12 months: Atlanta ($7.3 billion); Orlando, Fla., ($5.6 billion); South Florida ($4.5 billion); and Charlotte/Raleigh–Durham, N.C., ($4.2 billion).

The Southeast also notched the largest per-unit pricing gains of any other region, at 8.6% year over year. Additionally, its key metros benefit from migration fueled by high income-tax–rate states, including New York, New Jersey, Connecticut, and California.

Full article HERE

Source: Multifamily Executive

The U.S. Apartment Sector Would Continue to Remain Strong Even in a Recession

Even if there is an economic downturn in the near future, the apartment sector is likely to hold up, according to industry experts.

“Apartments are still resilient against a possible recession,” says Andrew Rybczynski, senior consultant for CoStar Group Portfolio Strategy.

Though the high end of the market may be feeling the strain of overbuilding, the sector overall is benefitting from long-term trends that should continue to fill apartment units for the foreseeable future.

“In 2005 and 2006, we knew we were living on borrowed time. We knew the fundamentals didn’t makes sense,” says John Sebree, director of the national multi housing group with real estate services firm Marcus & Millichap. “Today, the apartment industry fundamentals are so strong, I don’t think a potential recession would affect us that much.”

Full article HERE

Source: National Real Estate Investor

Raleigh (#3), Charlotte (#13), and Durham (#16) rank in the top 35 largest metro cities with most job opportunities

35 Fast Growing Cities With the Most Job Opportunities

People are flocking to these booming cities.

If you're looking for an up-and-coming city with a growing business scene, you won't find popular destinations like New York City or Los Angeles on any list.

Rather, Texas and parts of the Mountain region are taking over and considered the "biggest boomtowns" in America.

That's according to MagnifyMoney, which looked at the 100 largest metropolitan areas around the US and their change from 2011-2016 to determine which cities have the biggest influx of people, most work opportunities, and biggest business growth based on US Census data.

To calculate the ranking, every metro was scored on a scale of 100 in three categories:

  • People and housing: How many people are flocking to the area and is the metro keeping up, considering total population and housing units.

  • Workforce and employment opportunities: Unemployment rates, civilian labor force, and median earnings.

  • Growing industry: Rate of business and industry growth, including number of establishments and paid employees per paid period.

Each category was scored relative to other metros and looking at positive and negative changes in the area. The biggest positive change scores a 100, except unemployment rate, which was reversed in respect to the scale.

Below are the top 35 metros that showed the most people, business, and opportunity growth over a five-year period.


Full List HERE

Prices Keep Rising for Apartment Properties, Forcing Investors into Smaller Markets

Investors keep looking for apartment buildings to buy at good prices. The search is leading them to smaller properties in smaller markets.

“Things continue to be very good in multifamily,” says John Sebree, national director of the national multi housing group with brokerage firm Marcus & Millichap.

The amount of money multifamily investors are spending has stabilized at a high level. Investors continue to accept relatively low yields on their acquisitions, even though interest rates rose substantially in 2017 and are expected to rise further. Part of the reason is that apartment rents continue to rise across the country, attracting investors to bid for new properties.

Full article HERE

Source: National Real Estate Investor


Raleigh, Durham region lands on top 10 list of ‘Best Places to Live’ by US News & World Report


The Triangle has accrued another accolade – this time from U.S. News & World Report.

Listed as “Raleigh & Durham,” the Triangle ranked seventh on the list of “ Best Places to Live” in the country. Raleigh and Durham are recognized by the federal government as two separate metropolitan areas, though it is not uncommon to see the area referred to as “Raleigh-Durham.”

U.S. News ranked 100 cities using surveys from local residents, and data from the U.S. Census Bureau, FBI and the Bureau of Labor and Statistics. It also considered its past rankings for “Best High Schools” and “Best Hospitals.”

The report recognized the region for its unemployment rate of 4.4 percent, average annual salary of $51,150, median home price of $219,466 and an average commute time of 24.6 minutes. “Raleigh, Durham and Chapel Hill are known for their research/technology roots and collegiate rivalries,” says the report. “[It] is luring nearly 80 new residents a day with strong job growth and a high quality of life.”

Full Article HERE

Source: Triangle Business Journal