Report: Raleigh needs 45K more apartments by 2035
A record pace of new apartment construction is helping put a dent in the shortage of rentals across the Triangle with nearly 13,000 apartments currently being built.
But, a new report reveals builders would have to keep up this pace every year for more than a decade to meet the demand.
The report from National Multifamily Housing Coalition and National Apartment Association shows the Raleigh area has the ninth largest shortage of apartments in the nation right now. The report says the area needs nearly 45,000 more apartments by 2035, which is 3,000 apartments each year.
"It's one of these city and metro areas that's seen a lot of population movement so we anticipate demand in Raleigh to continue, said Caitlin Sugrue Walter wit the National Multifamily Housing Coalition.
Right now, Raleigh is experiencing a record pace of new apartment construction. The latest market report from CoStar shows 3,994 new units were built in the last year and more than 12,500 under construction.
"We’re really excited about a lot more product coming online. It’s going to help us house more people, but more importantly it’s going to help us house more people affordably." said Dustin Engelken with Triangle Apartment Association.
Engelken said the building boom is helping to cool off rising rents.
"Where you're seeing units come online, prices are either stabilizing or going down," he said.
Right now, rent is up 11.8% from a year ago. Compare that to the end of last year when rent growth peaked at 19%.
"If you’re currently renting an apartment and looking to renew, there’s still going to be a little bit of sticker shock when you get what is still, historically, a fairly high rate increase," said Engelken.
"You're starting to see things trend down. Looking into the future, I think you're going to continue to see that curve bend a little bit as more and more product comes onl line."
Data shows rent in the suburbs are higher with an average of $1,700. The average rent in downtown Raleigh is $1,570.
Cary, and outer-lying markets, haven't gotten the same attention from new development, so there's a real crunch in finding new units for people who want to move in and be close to work," said Engelken.
