RALEIGH, N.C.(WNCN) – A new study from the National Apartment Association and the National Multifamily Housing Council says Raleigh will need more than 44,000 new apartment units by 2035 to keep up with housing demands.
The level of need put Raleigh at the number nine spot for apartment demand. The city could also use help with affordability.
Raleigh was among the fastest growing cities in the survey. Along with Boise, Austin, Las Vegas, Orlando and Phoenix, Raleigh was expected to grow by at least double the national pace. Boise City, Las Vegas, Orlando, and Raleigh were expected to grow an average of 2 percent per year though 2035. The typical U.S. city is expected to grow by 1.1 percent, according to the study.
Top 10 cities for apartment demand:
- Austin: needs 117,107 units
- Dallas: needs 269,906 units
- Houston: 209,084 units
- Phoenix: needs 121,824 units
- Orlando needs 90,755 units
- Las Vegas: needs 74,845 units
- Atlanta: needs 116,167 units
- Charlotte: needs 60,046 units
- Raleigh: needs 44,481 units
- Seattle: needs 94,944 units
Demand is certainly reflected in local data as well. The Downtown Raleigh Alliance’s second quarter report for the year showed downtown apartments were 95 percent occupied.
DRA’s report showed there were 2,451 apartment units under construction or in site preparation downtown. Another 5,300 were planned or proposed. DRA says since 2015, there has been a 101 percent increase in downtown housing.
Demand is not isolated to apartments alone. A listing from Realtor.com placed Raleigh at the number 10 spot for top emerging housing markets. It found homes in Raleigh typically went under contract within 11 days .
Affordability will continue to be one of the biggest hurdles for Raleigh renters. Apartmentlist.com’s August Rent Report found rent in the city was 16 percent over the last year. Overall, rent was up 33 percent since March 2020.