A Decade of Downtown Growth—And It’s Just Getting Started
Downtown Raleigh is experiencing a sustained population boom—and the numbers are difficult to ignore.
- According to the Downtown Raleigh Alliance (DRA), the downtown population has doubled over the past ten years, with over 10,000 residents now living in the city center.
- U.S. Census data shows Raleigh’s broader population grew from 403,892 in 2010 to approximately 482,295 by 2023, a nearly 20% increase in just over a decade.
- Looking forward, DRA projections expect thousands more units to deliver over the next 5 years, potentially adding 7,767 new residential units to downtown and significantly expanding its resident base.
Who are these new residents? Demographic and employer data suggest they are:
- Young professionals, primarily between ages 22–35—often new college graduates, tech workers, and remote-capable knowledge workers
- Often transplants from higher-cost metros (New York, San Francisco, Boston) seeking affordability without sacrificing urban culture
- Motivated by a healthy job market, led by sectors like tech, life sciences, and financial services
- Drawn to Raleigh’s low cost of living, including lower state income and corporate taxes than peer cities, and more affordable housing
National publications have taken notice:
- Wall Street Journal recently highlighted Raleigh as one of the few cities where 20-somethings are still finding jobs and affording rent
- Axios called it “a magnet for new college grads,” citing opportunity and affordability as key drivers
What Growth Means for Real Estate—And What’s Coming Next
This rising population isn’t chasing suburban cul-de-sacs. The new wave of downtown residents are renters by choice, and their preferences are shaping the future of urban housing in Raleigh.
What are they renting?
- Primarily studio to two-bedroom units, often in new mid- and high-rise developments
- Apartments that emphasize amenities over square footage, including:
- Fitness centers and yoga rooms
- Co-working lounges
- Rooftop decks and pool areas
- Secure package lockers and pet amenities
- Proximity to parks and entertainment (like Dorothea Dix Park and Red Hat Amphitheater)
Is there enough housing?
Not quite. Despite record deliveries in 2024, occupancy rates remain above 92% for stabilized properties. This signals a tight rental market that favors landlords and investors.
And more growth is on the horizon:
- The DRA notes over $7.3 billion in development activity across completed, active, and planned projects downtown
- Of that, over 7,700 new housing units are planned, but very few have started construction, and delivery is expected to take several years
Investor takeaway:
Demand is here now. While the supply will eventually catch up, there is a multi-year window where undersupply of lifestyle-focused urban housing may create pricing power for owners and syndicators. As more professionals choose city living over suburbia, the downtown rental ecosystem becomes a long-term play—not just for appreciation, but for durable cash flow.
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.