RALEIGH / DURHAM Real Estate: Housing BOOM or BUST in 2021?

The Raleigh / Durham Housing Market is getting a lot interest from home buyers and real estate investors over the last year. Especially considering that Apple is now building a $500 million, 3,000 employee campus near Cary in the Research Triangle Park. But does that mean Raleigh is a good place to buy real estate right now? Or is it in a Housing Bubble that will eventually crash?

Raleigh, along with Durham it the north, have a stable real estate history. The market withstood the last Housing Crash well, only experiencing a 13% decline in home prices. But the downside to that steadiness is a lack of appreciation. From 1997 to 2021, over nearly 25 years, home prices in Raleigh went up by an average of 2.7% per year - barely above inflation.

Why is real estate in Raleigh so low growth? Look to housing supply. Raleigh builds more new homes and apartments than virtually any other market in America. So much new building keeps supply high and prices affordable, leading to low levels of appreciation. This is a great thing for society in Raleigh, but not so great for home owners and real estate investors.

The upshot of all this is that Raleigh likely has more downside protection from the 2021 Housing Bubble than a place like Austin - a market with similar economic growth. Home price growth in Austin has surged past local wages, making the local housing market very unstable. Raleigh, on the other hand, has a much closer relationship of home prices and wages, providing the market with more security.

Some of the most expensive areas in Raleigh include the Five Points neighborhood, as well as Cary and Chapel Hill. The cheapest areas in the metro are located in Durham, which are also the neighborhoods that have experienced the most appreciation as of the last 5 years. However, chasing appreciation this late in a Housing Bubble might not be the best idea!

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0:00 Apple moving to Raleigh!
1:41 Raleigh...BAD Appreciation?
4:03 Too Many New Homes / Apartments
7:17 Structural Supply...not Active Inventory
9:13 Raleigh: Good Downside Protection
10:56 How to Avoid the Next Crash
12:10 Home Prices across Raleigh / Durham
15:25 Appreciation across Raleigh / Durham
17:19 In Summary: Slow & Steady

#RaleighRealEstate #RaleighDurham #AppleRaleigh

Видео RALEIGH / DURHAM Real Estate: Housing BOOM or BUST in 2021? канала Reventure Consulting