Raleigh’s apartment market is experiencing historic levels of demand, with net absorption reaching an all-time high in 2024. According to CoStar, the city absorbed nearly 8,600 units, more than double its typical annual average. While absorption is expected to moderate in 2025, demand will still remain above historical trends, fueled by strong population growth and a thriving job market.
However, much of this demand has been concentrated in the luxury apartment segment, with high-end properties accounting for over 85% of new leases. This dynamic leaves a widening gap in affordable workforce housing, as middle-income renters struggle to find suitable options. With continued in-migration and job creation, particularly in industries requiring essential workforce roles, the need for well-located, reasonably priced housing will only increase.
NC Capital Group recognizes this market shift and is actively positioning investors to capitalize on the growing demand for quality, attainable rental housing. As vacancy rates tighten and luxury rents remain high, workforce housing presents a resilient investment opportunity, offering strong occupancy rates, steady cash flow, and long-term appreciation potential. Raleigh’s expanding economy ensures that the demand for affordable rental options will remain a key driver of the multifamily market in the years ahead.
See full article on CoStar news.
Eddie Coleman, CCIM, is the Principal Investment Officer at NC Capital Group. With over 40 years of experience in Commercial Real Estate in North Carolina and South Carolina, his experience spans multifamily, retail, office, historic adaptation, etc. In addition to advising clients and brokering transactions, he has extensive knowledge of North Carolina through experience in corporate site acquisition, development, capitalization, HUD financing, etc. He holds the prestigious Certified Commercial Investment Member (CCIM) designation.