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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

The 25 Best Affordable Places to Live in the U.S. in 2019

According to the US Census Bureau, a household that pays 30 percent or more of their income on housing costs are considered to be burdened. Charlotte and Raleigh both are ranked #25 and #19 out of the top affordable places to live in the US with affordability in the low 20% range for both cities.

Source: Real Estate US News

Full List HERE

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

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-Durham Poised for Another Year of Strong Growth

Economic momentum continues to build throughout the Raleigh-Durham region. Even as growth has ramped up nationwide, the Triangle region remains one of the fastest-growing areas in the country. National real GDP growth will likely end 2018 at 2.9%, backed by robust consumer spending and fiscal stimulus. We anticipate growth to moderate slightly to a still-solid 2.6% rate in 2019, as some of these tailwinds fade. The Raleigh-Durham area will continue to play a starring role in the national economic growth story, given the area’s booming tech and life sciences clusters which continue to attract new businesses and residents to the area. Raleigh ranks as the 8th fastest growing major metropolitan area in terms of real GDP growth from 2011 to 2017. The combined statistical area has added 240,000 residents during this period, lifting its population to 2.2 million. The region’s economic success is most clearly evident in the Triangle’s labor market. Both the Raleigh-Cary and Durham-Chapel Hill metro areas have seen their unemployment rates fall over the course of the past year and now sit well below the national rate at 3.1% and 3.2%, respectively. This comes as no surprise as the region has also been adding jobs at a pace well above the rest of the country. As of November, Raleigh payrolls have surged 3.2% year-over-year, propelled in large part by a booming tech industry. Job growth in Durham was slightly more moderate, but still grew 2.0%, which is ahead of the 1.7% growth seen nationwide. We suspect Durham’s slightly more modest expansion may also be underestimating growth. The Quarterly Census of Employment and Wages, which is a more complete accounting of payrolls and lags the monthly survey data by six months, shows significantly stronger job growth in Durham’s key education & health and professional & business services sectors, suggesting the preliminary estimates of job growth will be revised higher to a rate more consistent with neighboring Raleigh. Furthermore, overall employment growth in both metro areas has accelerated more recently, making the prospects for growth throughout 2019 increasingly bright.

Full PDF HERE

Source: Wells Fargo Economics Group

Charlotte job growth continues it’s growth trajectory

CHARLOTTE — Amazon nixed Charlotte’s $270 million economic incentives package, snubbing the Queen City in the process.  But with the announcement of four major economic development initiatives in the past four weeks that are set to add as many as 2,715 good paying jobs to the economy, the Queen City intends to cultivate a strong workforce to attract and retain companies and skilled individuals.

Companies expand in locations where they can either find talent or attract talent to join the region, said Tracy Dodson, assistant city manager for the City of Charlotte.

“If you build a great city, and you build a great region, you attract the talent and you retain the talent,” said Dodson.  “When there’s a city within a region where people want to live, companies can thrive, and their employees can thrive.”

And Charlotte appears to be attracting and retaining talent, with the region growing at nearly 14 percent since 2010, ranking among the top 35 fastest-growing cities by population in 2017 by the U.S. Census Bureau.

That’s more than 300,000 people that have relocated to Charlotte in seven years, and the Queen City nets roughly 60 new residents per day.  And that’s good for Charlotte, said Dodson, and good for companies that are expanding or looking to relocate to the region.

“People want to be here,” said Dodson.  “We’re trying to leverage that with companies.”

Full article HERE

Source: WRAL Tech Wire

Surprise: This Southern Hub Might Have the Best Talent Pipeline in Tech

North Carolina is home to a bustling epicenter for tech startups, brainy talent, and killer barbecue.

A hyper-educated workforce means the Research Triangle, the North Carolina region comprising Chapel Hill, Durham, and Raleigh--Inc.'s No. 3 Surge City--has a booming and brainy startup scene. Once known for tobacco and textiles, the area has reinvented itself as a hub equally well-versed in tech and food.

Startup Neighborhoods

Most residents never thought they'd see the day, but downtown Durham is now a cultural and entrepreneurial hotbed. American Tobacco Campus, once a crime-ridden stretch of abandoned cigarette factories, is now a sprawling expanse of outdoor cafés, green space, and startup offices. Sports-scheduling app maker Teamworks is around the corner from the massive American Underground co-working space, which houses more than 80 companies, including fintech startup LoanWell.

Raleigh's Warehouse District, another recently revitalized precinct, is home to Videri Chocolate Factory, as well as HQ Raleigh's 20,000-square-foot flagship co-working space. Lunchgoers hit the original Happy + Hale for ahi poke bowls and cold-pressed juices.

$96,173

Average salary of a software engineer here --17 percent below the national average.

Source: Glassdoor

$1.1 billion

Funding raised by North Carolina startups in 2017, up 36 percent from the previous year.

Source: Council for Entrepreneurial Development

$25.23

The average annual asking office rent per square foot.

Source: JLL's Q2 2018 Office Insight report on the Raleigh-Durham market

47 percent

Portion of the local talent pool with a bachelor's or higher degree.

Source: JLL's Q2 2018 Office Insight report on the Raleigh-Durham market

The Downtown Chapel Hill area, located at the northwest corner of the UNC campus, is home to a Google outpost and a handful of co-working spaces.

Talent Pipeline

The home to Duke, the University of North Carolina at Chapel Hill, and NC State offers a hyper-educated workforce (ahead of San Francisco, according to NerdWallet). All three schools have well-regarded entrepreneurship programs, as well as angel funds through which alumni can invest in current students' ventures. The area's startups are software-heavy, thanks in part to the schools' strong engineering and computer science studies, but there are plenty of exceptions, like beekeeping startup Bee Downtown, which Leigh- Kathryn Bonner founded while at NC State.

UNC-backed Launch Chapel Hill offers a 22-week accelerator program that accepts eight to 12 startups. Graduates include Seal the Seasons, which freezes and distributes farmers' crops.

Full Article HERE

Source: Inc.com

North Carolina’s Research Triangle Tops Our 2018 List Of The Best Places To Rent

Home to UNC Chapel Hill, N.C. State and Duke University, North Carolina’s Research Triangle region—including the cities of Raleigh, Durham and Chapel Hill—is best known for top notch universities, but students would be wise to consider sticking around after graduation. Reasonably priced apartments, coupled with strong population growth and ample employment opportunities, earn the area the top spot on our 2018 list of the best places to be a renter this year. 

Full Article HERE

Source: Forbes