Look at any "best of the best" list of American cities and you'll likely find Raleigh on it. In 2015 alone, Raleigh was included on Glassdoor's 25 Best Cities for Jobs list, WalletHub named it the second-best U.S. city for folks working for small businesses, STAR Communities recognized it as a "4-STAR" sustainability-minded community, NerdWallet identified it as one of the nation's most innovative tech hubs and the Brookings Institution named it one of the world's 50 leading economic growth areas.
Residents love Raleigh for its breathtakingly-beautiful downtown area and the abundance of culture, history, sporting events, museums and concerts that can be found there. While spending a warm afternoon on local pastimes like pig pickin' and gulping down ice-cold cheerwine is reason enough to love living in Raleigh, finding an inexpensive rental home is a challenge, according to many, and demand far exceeds supply.
Q2 2015 Raleigh Rental Market Update
For the second consecutive quarter, Raleigh continues to be one of the best cities in the country to own rental properties in. Currently, it ranks second in the Southeastern U.S. (right behind Nashville) and seventh in the country as a whole in terms of attractiveness for rental real estate investment.
Raleigh's moderately strong annual gain in median rents, 4.02 percent, is slightly less than the national average for that metric, as is its annual property appreciation rate of 4.89 percent. However, Raleigh's exceptionally low vacancy rate, 3.10 percent (less than half the national average), and year-over-year job growth rate, 2.84 percent (almost 40 percent greater than the national average), indicate that demand for housing there is currently - and will likely to continue to be - very high. Accordingly, Raleigh rental property owners can expect their investments to become even more lucrative in coming quarters.
It should also be pointed out that Raleigh achieved a sixth and eighth place ranking in the Rental Unit Availability and Tax & Insurance Cost indices. Raleigh's high ranking for the former can be attributed to the fact that only around 6,500 building permits have been issued so far in 2015, not nearly enough to keep pace with the Raleigh metropolitan area's population growth. Its high ranking for the latter can be attributed to its relatively low property taxes and annual homeowners insurance premiums, two factors that add to the profitability of Raleigh rental real estate.
Q1 2015 Raleigh Rental Market Update
The Q1 2015 Rental Ranking Report found that Raleigh is the best market in the Southeastern U.S. and the sixth-best market in the U.S. as a whole for rental property owners. This impressive ranking is largely due to Raleigh's extremely high 7.63 percent year-over-year increase in median rental prices, almost three times the national average rental variance of 2.71 percent.
It's easy to see why Raleigh rents have risen so much over the past year. Raleigh's job growth rate of 3.49 percent is one of the best in the country, and our Job Availability Index shows that Raleigh's future job growth will be fifth-best in the U.S. All these new residents have to live somewhere, which explains Raleigh's moderately low vacancy rate of 4.80 percent. Booming demand for housing has led to a 5.78 percent appreciation in property values.
What data is this Rental Ranking Report based on?
To calculate the statistics found in the Q2 2015 Rental Ranking Report, All Property Management gathered data, including the most recent government housing and jobs data, for 75 metros across the United States. Specifically, we looked at home vacancy, capitalization, home value appreciation and job growth rates, changes in rental prices, and the median number of days properties have been on the market to determine which U.S. metros will give investors the highest returns on rental investments. Click here to learn more about the Rental Ranking metrics.
Should I invest in Raleigh rental property?
Thinking about renting out a property in Raleigh? Save time, avoid hassle and maximize your rental income by having a professional property management company operate your rental property for you. Click here to get a free quote from a local property manager or call 877-780-4510 to have the All Property Management staff get quotes for you.
All Property Management specializes in connecting rental property owners with professional property managers in communities across the United States. These property managers help set rental rates, advertise properties, screen and manage tenants, collect rent, manage vendor relationships and ensure compliance with local, state and federal housing regulations. They take the hassle and worry out of managing rental properties - all while maximizing rental property owners' rental incomes.