Looking for the best places to invest in real estate right now?
If you’ve heard of the booming property values in North Carolina, then you might be wondering, “Is Chapel Hill a good rental market?”
Good news: buying an investment property in Chapel Hill is an excellent move in 2021.
The Chapel Hill housing market area ranked #1 (the Raleigh/Durham housing market, specifically) in the PwC and Urban Land Institute’s “2021 Emerging Trends in Real Estate” report. Despite the impact of the coronavirus pandemic, the Chapel Hill real estate market is hot and heating up heading into 2021.
Chapel Hill (Raleigh area) Housing Market Statistics 2020
Let’s take a quick look at how the Chapel Hill real estate market is performing right now. This will provide some insight into why Chapel Hill been rated a top market for 2021.
Median Property Price: $477,440
Price per Square Foot: $197
For Sale Listings: 1,015
Price to Rent Ratio: 27
Monthly Traditional Rental Income: $1,485
Traditional Cash on Cash Return: 2.2%
Average Airbnb Daily Rate: $132
Monthly Airbnb Rental Income: $2,617
Airbnb Cash on Cash Return: 3.6%
Airbnb Occupancy Rate: 65%
6 Reasons Why the Chapel Hill Housing Market 2021 Will Be a Top Market
Why will the Chapel Hill housing market be #1 for 2021?
In-Migration Will Cause the Renter Population to Increase
Currently, the renter population in Raleigh is high – around 51%. The renter population in the Chapel Hill housing market will continue increasing due to the city’s steady in-migration rates. Chapel Hill Shouldn’t be var off.
As stated in the “2021 Emerging Trends in Real Estate” report, the Chapel Hill area housing market is one of the Magnet markets. Chapel Hill falls under the subcategory of 18-hour cities, indicating that it is a major attraction for young people seeking the up-and-coming lifestyle, culture, and work opportunities the city offers. This age group is typically known for being renters and thus, 2021 will likely see the Chapel Hill renter population go up. But there’s another factor at play here, too, besides demographics: affordability.
Occupancy Rates Will Be High Due to Lack of Affordability
In addition to the population of young people growing, affordability plays a factor in the profitability of this rental market.
The price to rent ratio in Chapel Hill is extremely high: 27. This means that the vast majority of Chapel Hill residents will find it far more affordable to rent than buy homes. A high price to rent ratio is a good sign for real estate investors because they will experience high occupancy rates. And with the Chapel Hill real estate market forecast 2021 showing an increase in home values, more and more people will be priced out of the market and into rental properties.
Best Neighborhoods in Raleigh for Traditional Investment
#1. Northeast Raleigh
Median Property Price: $272,544
Price per Square Foot: $138
Price to Rent Ratio: 17
Monthly Traditional Rental Income: $1,365
Traditional Cash on Cash Return: 3.4%
#2. Falls of Neuse
Median Property Price: $445,142
Price per Square Foot: $191
Price to Rent Ratio: 20
Monthly Traditional Rental Income: $1,865
Traditional Cash on Cash Return: 3.0%
#3. North Central
Median Property Price: $561,561
Price per Square Foot: $295
Price to Rent Ratio: 21
Monthly Traditional Rental Income: $2,218
Traditional Cash on Cash Return: 2.7%
#4. South Central
Median Property Price: $407,637
Price per Square Foot: $237
Price to Rent Ratio: 20
Monthly Traditional Rental Income: $1,719
Traditional Cash on Cash Return: 2.7%
#5. East Raleigh
Median Property Price: $272,724
Price per Square Foot: $159
Price to Rent Ratio: 19
Monthly Traditional Rental Income: $1,228
Traditional Cash on Cash Return: 2.5%
Related: How to Achieve a High ROI on Rental Property Every Time
Multifamily Properties in Chapel Hill and anywhere near Raleigh Will Be Profitable
Real estate investors who are interested in taking on multifamily properties should consider the Chapel Hill housing market. While most types of Chapel Hill rental properties are set to perform exceptionally well in 2021, 72% of real estate analysts recommend buying multifamily property in Raleigh, according to the “2021 Emerging Trends in Real Estate” report. Find a top-performing multifamily home for sale in Chapel Hill now by visiting HPW.
Find it here: https://www.hpw.com/Chapel Hill-north-carolina-real-estate-and-homes.html
