Raleigh North Carolina homes Listing Prices Absolutely Skyrocketing Like Never Before

Looking for the best places to invest in real estate this year?

If you’ve heard of the booming real estate markets in North Carolina, then you might be wondering, “Is Raleigh a good rental market?”

Good news: buying an investment property in Raleigh is your best move in 2021.

The Raleigh 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 Raleigh real estate market is hot and heating up heading into 2021.

Raleigh (Raleigh area) Housing Market Statistics 2020

Let’s take a quick look at how the Raleigh real estate market is performing right now. This will provide some insight into why Raleigh 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%

Raleigh homes

6 Reasons Why the Raleigh Housing Market 2021 Will Be a Top Market

Why will the Raleigh 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 Raleigh housing market will continue increasing due to the city’s steady in-migration rates. Raleigh Shouldn’t be var off.

As stated in the “2021 Emerging Trends in Real Estate” report, the Raleigh area housing market is one of the Magnet markets. Raleigh 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 Raleigh 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 Raleigh is extremely high: 27. This means that the vast majority of Raleigh 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 Raleigh 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 Raleigh and anywhere near Raleigh Will Be Profitable

Real estate investors who are interested in taking on multifamily properties should consider the Raleigh housing market. While most types of Raleigh 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 Raleigh now by visiting HPW.

Find it here: https://www.hpw.com/Raleigh-north-carolina-real-estate-and-homes.html

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