Apartment rental rates continue to rise in the Triangle with no end in sight as population growth and a booming economy make way for soaring demand and occupancy rates over 90 percent.
Rental rates in the Triangle saw a 6.5 percent growth rate over the past 12 months, according to the latest report by ApartmentData.com, bringing average rates to $1,165 per month and $1.20 per square foot.
Occupancy rates have reached 92.4 percent, with around 4,100 units absorbed over the past 12 months. Just 3,100 new units opened in the same period of time.
Across the region, developers have begun work on 28 communities, totaling 6,476 units. An additional 48 communities with 13,163 units have been proposed. ApartmentData.com also looked at rental rate growth and absorption in 22 Triangle-area submarkets over the past three months to determine which spots are the “hottest.”
For September, they are:
- Crabtree Valley/Northwest Raleigh: $1.23 per-square-foot monthly rental rate; 13.6 percent annualized growth; 1.5 percent of market absorbed.
- Brier Creek: $1.15 per-square-foot monthly rental rate; 11.4 percent annualized growth; 2.8 percent of market absorbed.
- New Bern Ave/Knightdale: $1.11 per-square-foot monthly rental rate; 13.4 percent annualized growth; 1.5 percent of market absorbed.
- Downtown Durham/Duke University: $1.58 per-square-foot monthly rental rate; 7.8 percent annualized growth; 2.9 percent of market absorbed.
- Research Triangle Park: $1.23 per-square-foot monthly rental rate; 13.6 percent annualized growth; 0.7 percent of market absorbed.
- University Drive/Durham-Chapel Hill Blvd: $1.19 per-square-foot monthly rental rate; 18.4 percent annualized growth; 0.6 percent of market absorbed.
- Downtown Raleigh/East Raleigh: $1.53 per-square-foot monthly rental rate; 5.0 percent annualized growth; 3.0 percent of market absorbed.
- Cary/Morrisville: $1.19 per-square-foot monthly rental rate; 9.2 percent annualized growth; 1.4 percent.
- Garner/Clayton/Smithfield: $1.08 per-square-foot monthly rental rate; 5.2 percent annualized growth; 2.2 percent of market absorbed.
- Croasdaile/Northgate/Wellons Village: $1.03 per-square-foot monthly rental rate; 5.6 percent annualized growth; 2.2 percent of market absorbed.
Meanwhile, apartment rental site Zumper.com puts median rental rates in Raleigh at $1,019 for a one-bedroom apartment and $1,195 for a two-bedroom apartment. In Durham median rent for a one-bedroom apartment is $1,053. For a two-bedroom apartment, its around $1,200.
In comparison, Zumper puts the median rent of a one-bedroom apartment in Charlotte at $1,280, up 11.3 percent from last year. A two-bedroom unit costs $1,430 in monthly rent, up 10.9 percent annually, Zumper says.
At the same time, in the nation’s priciest markets of San Francisco and New York, monthly rent for one-bedroom units are $3,540 and $3,030, respectively.
Rent in Raleigh was well below the national rates of $1,250 for a one-bedroom apartment and $1,493 for a two-bedroom apartment.
Publication: Triangle Business Journal