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Raleigh is the capital of the state of North Carolina. Home to over 480,000 residents, it is the second-largest city in the state after Charlotte. The city is part of a large metropolitan area known as the Raleigh-Durham-Chapel Hill area, or the Triangle area, which has a population of 2.6 million. One of the fastest-growing cities in the US, Raleigh enjoys a population growth rate well above the national rate. This growth is driven primarily by the strong annual net migration the city experiences. This is a good indicator for those considering investing in the Raleigh real estate market since, with this growth in population, comes more tenants. Additionally, nearly half of the city’s residents (48% according to NeighborhoodScout) are renters rather than homeowners, meaning Raleigh rental properties benefit from high demand and occupancy rates.

The City of Oaks enjoys a strong economy that is supported by a young and highly educated workforce. It is part of North Carolina’s Research Triangle, one of the country’s largest and most prominent high-tech research and development parks and a well-known hub for life sciences. The surrounding area is home to a number of universities, including North Carolina State University, UNC Chapel Hill, and Duke University, which have a notable economic impact on the region. Each year, thousands of graduates from these universities provide a steady source of employees that help to fuel local economic growth. Ranked as the 2nd Best Place for Business and Careers by Forbes, Raleigh offers a welcoming business climate and lower costs compared to other tech cities. The city is a magnet for startups and sees many companies expanding and moving in from other parts of the country. Other major industries driving the economy in Raleigh include financial services, electrical, electronic and telecommunications equipment, clothing, food processing, and tourism.


Reasonably priced housing, coupled with strong population growth and ample employment opportunities, earned Raleigh the 3rd spot on PWC’s list of Top US Markets to Watch in its annual Emerging Trends in Real Estate: United States and Canada 2019 report. The city is among the top in the US for real estate investment and development opportunities. The report, however, cites a need for more affordable housing to meet demand.

Raleigh Realtors and Real Estate Agents


Raleigh  Real Estate Investment Performance
Facts and Market Trends in Raleigh
Homes For Sale750
Airbnb Properties305
Rental Properties1,573
Traditional Vacancy rate4.50%
Airbnb Occupancy Rate66.42%
Mashmeter69.83%
Median Price$385,000
Median Rent Price$1,538
Price/sqft$221
Median Days on Market71
Price to Rent Ratio25.9
Average Cap Rate
Airbnb4.60%
Traditional2.32%
Average Rental Income
Airbnb$3,319
Traditional$1,526
 
Median Household Income$54,581
Population469,298
Transportation in Raleigh
30 / 100
Car-Dependent
30 / 100
Some Transit
37 / 100
Somewhat Bikeable
Raleigh  Rent Prices
RENTAL STRATEGY STUDIOS 1 ROOM 2 ROOMS 3 ROOMS 4 ROOMS
Airbnb$1,599$1,750$2,123$3,547$4,420
Traditional$973$973$1,245$1,623$1,976
Raleigh, NC - Homes for Sale - Newly Listed
$264,900
MLS 2377638
805 Cupola DRIVE
Raleigh, NC 27603
Southwest Raleigh
Townhouse
2 beds3 baths1,349 sq.ft.
CAP RATE
Trad. 2.86%Airbnb 4.50%
$466,000
MLS 2377685
9900 Rimwood Court
Raleigh, NC 27613
Northwest Raleigh
Single Family Residential
3 beds3 baths1,858 sq.ft.
CAP RATE
Trad. 1.54%Airbnb 6.11%
$410,000
MLS 2377503
6904 Hunters Way
Raleigh, NC 27615
North Raleigh
Townhouse
3 beds3 baths2,455 sq.ft.
CAP RATE
Trad. 1.72%Airbnb 4.75%
$425,000
MLS 2377630
301 Fayetteville Street #2510
Raleigh, NC 27601
Central
Condo/Coop
2 beds2 baths1,190 sq.ft.
CAP RATE
Trad. 2.55%Airbnb 1.21%
Top Performing Raleigh Properties
$309,900
MLS 2331578
124 Maraketch Court
Raleigh, NC 27603
Southwest Raleigh
Single Family Residential
4 beds3 baths2,300 sq.ft.
CAP RATE
Trad. 4.79%Airbnb 7.97%
$275,000
MLS 2372920
704 Sawmill Road
Raleigh, NC 27615
North Raleigh
Single Family Residential
3 beds2 baths1,493 sq.ft.
CAP RATE
Trad. 3.44%Airbnb 7.95%
$219,000
MLS 2371586
2801 Old Stagecoach Lane
Raleigh, NC 27603
Southwest Raleigh
Single Family Residential
3 beds2 baths1,188 sq.ft.
CAP RATE
Trad. 4.85%Airbnb 7.95%
$374,900
MLS 2375972
4126 Earl Grey Court
Raleigh, NC 27612
Glenwood
Townhouse
3 beds4 baths2,517 sq.ft.
CAP RATE
Trad. 3.30%Airbnb 7.93%
Recently Sold Homes in Raleigh, NC
$589,900
MLS 2368371
2601 Stewart Drive
Raleigh, NC 27603
Southwest Raleigh
Multi Family
0 beds0 baths3,648 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$1,500,000
MLS 2373957
1508 Gorman Street
Raleigh, NC 27606
Hillsborough
Multi Family
0 beds0 baths4,227 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$309,900
MLS
1911 Wolf Tech Ln
Raleigh, NC
Southwest Raleigh
Single Family Residential
beds baths0 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$1,195,000
MLS 2368219
1114 Harvey Street
Raleigh, NC 27608
Five Points
Single Family Residential
4 beds3 baths3,251 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Property Value Changes and Real Estate Appreciation in the Raleigh Housing Market

Real estate appreciation in the Raleigh real estate market is tangible as property values have risen by 70.82% since Q1 of 2000, which is an average annual home appreciation rate of 2.82% according to NeighborhoodScout. Property value is still climbing in the Raleigh housing market as Zillow reports an appreciation of 6.2% over the past year. This housing market trend is expected to continue, which makes Raleigh a hot seller’s market with large opportunities for long-term return on investment. 


There is a limited number of homes for sale on the market, while demand from homebuyers and real estate investors continues to rise as the population grows. This shortage of housing supply is what contributes to the high real estate appreciation that a Raleigh real estate investor will enjoy.

Raleigh, NC Top Multi Family Homes
$375,000
MLS 2327451
3900 Lexington Drive
Raleigh, NC 27606
Hillsborough
Multi Family
0 beds0 baths840 sq.ft.
CAP RATE
Trad. 1.47%Airbnb N/A
$535,000
MLS 2276382
3809 Virginia Street
Raleigh, NC 27610
East Raleigh
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. 1.41%Airbnb N/A
$439,000
MLS 2361547
5628 Thea Lane
Raleigh, NC 27606
West Raleigh
Multi Family
0 beds0 baths2,715 sq.ft.
CAP RATE
Trad. 1.36%Airbnb N/A
$998,500
MLS 2362688
900 Glenwood Avenue #1 & 2
Raleigh, NC 27605
Mordecai
Multi Family
0 beds0 baths3,028 sq.ft.
CAP RATE
Trad. 0.27%Airbnb N/A
Homes Below Median Price in the Raleigh, NC Real Estate Market
$309,900
MLS 2331578
124 Maraketch Court
Raleigh, NC 27603
Southwest Raleigh
Single Family Residential
4 beds3 baths2,300 sq.ft.
CAP RATE
Trad. 4.79%Airbnb 7.97%
$275,000
MLS 2372920
704 Sawmill Road
Raleigh, NC 27615
North Raleigh
Single Family Residential
3 beds2 baths1,493 sq.ft.
CAP RATE
Trad. 3.44%Airbnb 7.95%
$219,000
MLS 2371586
2801 Old Stagecoach Lane
Raleigh, NC 27603
Southwest Raleigh
Single Family Residential
3 beds2 baths1,188 sq.ft.
CAP RATE
Trad. 4.85%Airbnb 7.95%
$374,900
MLS 2375972
4126 Earl Grey Court
Raleigh, NC 27612
Glenwood
Townhouse
3 beds4 baths2,517 sq.ft.
CAP RATE
Trad. 3.30%Airbnb 7.93%
Raleigh Airbnb Growth and Regulations

The short-term rental industry in Raleigh has thrived in recent years. Millions of visitors flock to the city each year as it is an attractive destination to host conventions, sporting events, and business gatherings. In the past year, nearly 143,000 Airbnb guests stayed in short-term rental properties in the Triangle area, bringing a total revenue of $18 million to the local Airbnb hosts. This means the average Airbnb Raleigh host earns about $6,000 per year. 

In May 2019, the Raleigh city council passed a short-term rental ordinance that places tight restrictions on short-term rentals but it will go into effect starting January 2020.  Under the ordinance, homeowners can only rent out up to two guest rooms in their homes, but not their entire home. They must also be living on the property while renting it out. This effectively outlaws the use of non-owner occupied vacation rentals. The new law also limits hosts to only two adult guests and their minor children staying in the house at a time. 

Raleigh Airbnb hosts must register with the city and pay a short-term rental permit fee of $172 (the annual fee for permit renewal is $86). They must also inform all the neighbors living within 100 feet of the property that they are seeking a rental permit. Violation of any of these terms could cost homeowners up to $500 in fines per day.

Raleigh, NC Top Airbnb Homes
$50 per night
Entire home/apt · 3 beds
Charming Private Apt. near Downtown
771
$69 per night
Entire home/apt · 1 bed
Delightful Downtown Carriage House
631
$116 per night
$67 per night
Raleigh, NC Homes for Rent
$1,595
MLS 2377469
6900 Oviedo Drive
Raleigh, NC
Six Forks
Single Family
3 beds2 baths1,613 sq.ft.
$2,000
MLS 2377442
$1,750
MLS 2377320
8840 Campfire Trail
Raleigh, NC
North Raleigh
Single Family
4 beds3 baths0 sq.ft.
$975
MLS 2370139
411 Bragg
Raleigh, NC
South Central
Other
2 beds1 baths900 sq.ft.
Raleigh, NC Open Houses
Open 2 PM to 4 PM
$499,900
MLS 2376300
618 Dorothea Drive
Raleigh, NC 27603
Central
Single Family Residential
3 beds3 baths1,344 sq.ft.
CAP RATE
Trad. 1.92%Airbnb 4.94%
Open 4 PM to 6 PM
$450,000
MLS 2377443
9821 Derbton Court
Raleigh, NC 27617
Northwest Raleigh
Single Family Residential
3 beds2 baths2,116 sq.ft.
CAP RATE
Trad. 1.65%Airbnb 6.39%
Open 2 PM to 4 PM
$400,000
MLS 2375954
2225 Watkins Street
Raleigh, NC 27604
East Raleigh
Single Family Residential
4 beds2 baths1,911 sq.ft.
CAP RATE
Trad. 1.82%Airbnb 6.07%
Open 1 PM to 3 PM
$390,000
MLS 2376674
1813 Midwood Drive
Raleigh, NC 27604
Mordecai
Single Family Residential
2 beds1 baths1,222 sq.ft.
CAP RATE
Trad. 2.51%Airbnb 3.43%
Best Raleigh Neighborhoods for Buying Investment Property
67%
Mashmeter
property price
$535,000
Median
cap rate
4.54%
Traditional
8.09%
Airbnb
rental income
$2,023
Traditional
$3,606
Airbnb
homes for sale
23
occupancy rate
67%
Airbnb
69%
Mashmeter
property price
$489,450
Median
cap rate
4.16%
Traditional
8.44%
Airbnb
rental income
$1,698
Traditional
$3,443
Airbnb
homes for sale
36
occupancy rate
63%
Airbnb
68%
Mashmeter
property price
$445,000
Median
cap rate
4.82%
Traditional
10.74%
Airbnb
rental income
$1,789
Traditional
$3,981
Airbnb
homes for sale
17
occupancy rate
69%
Airbnb
78%
Mashmeter
property price
$329,900
Median
cap rate
5.51%
Traditional
12.08%
Airbnb
rental income
$1,514
Traditional
$3,320
Airbnb
homes for sale
21
occupancy rate
66%
Airbnb
68%
Mashmeter
property price
$575,000
Median
cap rate
3.12%
Traditional
4.79%
Airbnb
rental income
$1,497
Traditional
$2,293
Airbnb
homes for sale
9
occupancy rate
69%
Airbnb