As 2018 rides off into the sunset, many real estate investors are starting to search for the best real estate markets for 2019. One such market is located in the North Carolina housing market: the Raleigh real estate market. Ranked as the 3rd best market to watch by a report from the PWC, the City of Oaks is projected to have a strong year in 2019, thanks to its established market trends.
Why You Should Invest in the Raleigh Real Estate Market 2019
The core reasons to invest in the Raleigh real estate market 2019 are based on its real estate market trends. In a nutshell, the Raleigh housing market forecast is bright because of affordable investment properties, high appreciation, a booming economy, and a growing population.
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Affordability and Appreciation
Like many cities in the North Carolina real estate market and the South overall, the Raleigh housing market features many affordable investment properties. A primary reason why Raleigh investment properties are relatively inexpensive is due to the market’s supply-demand balance. This makes sense, given Raleigh’s rank of being the 7th best city for homebuilding prospects, according to the report. The report also mentions that the city is among the top in the US for development/redevelopment opportunities.
While the average Raleigh investment property is affordable, the housing market forecast projects a property price increase. According to Realtor.com, home sales are expected to drop by 2 percent and property prices are expected to increase by 2.2 percent. In the Raleigh real estate market 2019, however, home sales are projected to uptick by 2.4 percent and properties are projected to appreciate by 3.9 percent. This appreciation is great news for investors looking to sell a Raleigh investment property. It also builds a strong case for buy-and-hold investing in the city.
Related: Where to Invest in Real Estate for Appreciation in 2018: Top 5 Cities
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Economic Prosperity
Another vital component of housing market predictions is an area’s economy. Luckily, the Raleigh economy is only predicted to improve in 2019. Raleigh’s high-tech workforce is among the most educated in the country. About half of the city’s adults have a bachelor’s degree, which is leagues ahead of the 22 percent national average. Overall, the city’s employment growth is projected to be over the US average. The Raleigh real estate market 2019 is expected to be among the most stable as a result.
To top it all off, the city was also named as one of the best places for business and careers by Forbes in 2018. These economic factors heavily influence Raleigh to arguably be the best place to invest in real estate in the South, along with Dallas, Texas.
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Migration Trends
The Raleigh real estate market 2019 will see no shortage of prospective tenants. There has been a strong net migration into the area for the last few years. Headlining this influx are millennials, many of whom are attracted to Raleigh’s strong job market and universities. Real estate investor demand is high in North Carolina’s capital. Over 50 percent of its residents reside in rental properties, according to Neighborhood Scout.
Related: US Housing Market Predictions: What’s to Come in 2019
Raleigh Real Estate Market: City-Level Data
We’ve qualitatively explained the Raleigh real estate market 2019 forecast. Now it’s time to describe it statistically. Here’s the city’s data according to Mashvisor’s investment property calculator, which you can learn more about by clicking here.
- Median Property Price: $428,306
- Price Per Square Foot: $1,125
- Price-to-Rent Ratio: 24
Traditional
- Rental Income: $1,510
- Cap Rate / Cash on Cash Return: 1%
As you can see, the average Raleigh investment property is both affordable and profitable. The typical Raleigh investment property is cheaper than that in the majority of metro cities. Rental income and return on investment are also in great shape. Many of the best neighborhoods in Raleigh fare much better than these averages, however. As consistent with the previous real estate market trends, investor demand is high in Raleigh, since the city’s price-to-rent ratio is over 21. The interplay of this data and Raleigh’s market trends make North Carolina’s capital among the best real estate markets for 2019.
Best Neighborhoods in Raleigh for Real Estate Investing
The Raleigh real estate market 2019 is arguably the best place to invest in real estate within its region. But what are the best neighborhoods to invest in Raleigh real estate? According to Mashvisor’s Heatmap analysis, the best neighborhoods in the Raleigh real estate market 2019 are:
Northeast Raleigh
- Median Property Price: $239,373
- Price Per Square Foot: $123
Traditional
- Rental Income: $1,355
- Cap Rate / Cash on Cash Return: 2%
Falls of Neuse
- Median Property Price: $275,179
- Price Per Square Foot: $143
Traditional
- Rental Income: $1,349
- Cap Rate / Cash on Cash Return: 2%
Central
- Median Property Price: $731,337
- Price Per Square Foot: $302
Traditional
- Rental Income: $2,045
- Cap Rate / Cash on Cash Return: 2%
Southwest Raleigh
- Median Property Price: $371,394
- Price Per Square Foot: $166
Traditional
- Rental Income: $1,487
- Cap Rate / Cash on Cash Return: 2%
East Raleigh
- Median Property Price: $266,470
- Price Per Square Foot: $175
Traditional
- Rental Income: $1,299
- Cap Rate / Cash on Cash Return: 2%
West Raleigh
- Median Property Price: $353,546
- Price Per Square Foot: $157
Traditional
- Rental Income: $1,309
- Cap Rate / Cash on Cash Return: 1%
Six Forks
- Median Property Price: $436,241
- Price Per Square Foot: $182
Traditional
- Rental Income: $1,503
- Cap Rate / Cash on Cash Return: 1%
Related: How to Find the Best Investment Property Using a Heatmap
How to Find Properties to Invest in Raleigh Real Estate
After reading this blog post, you might be wondering: How can I invest in Raleigh real estate? The answer is simple and right in front of you: use Mashvisor! You can use Mashvisor’s neighborhood analysis to scour different areas of Raleigh and find a neighborhood that meets your desired profitability, among other things. Then, you can use Mashvisor’s investment property analysis to fully analyze the property and understand its investment potential. Click here to start your 14-day free trial with Mashvisor and begin investing in Raleigh real estate!
