According to a new ranking by an influential research group, Raleigh-Durham has overtaken Austin as the hottest metropolitan area for real estate prospects in 2022!
Known for its place in manufacturing, life sciences, research, and health care, Raleigh-Durham has enough momentum in residential attractiveness to move it from second place in 2021 to number one in Urban Land Institute’s annual “Emerging Trends in Real Estate” 2021 report. Austin has been knocked to second place, and Nashville remains in it’s third place position. Real estate industry pros have been shifting their opinion in a positive direction for the Raleigh-Durham area.
Raleigh-Durham offers a booming career bases, walkable authentic markets, and lower housing and business costs when compared to larger coastal cities around the country. For these reasons, Raleigh-Durham creates a very attractive lifestyle for young professionals and families.
Even throughout the COVID19 Pandemic, the Raleigh-Durham housing market showed plenty of resilience. The Real Estate services firm, CBRE, had listed Durham as the top real estate market in 2021 with resilient industries in healthcare, government, and technology (tech making up the highest percentage of workforce at over 40%). Tech companies from around the country seek to locate to Raleigh-Durham because of the high tech labor pool (about 50% of residents who are 25 and older have a bachelor’s degree or higher, significantly more than the U.S. average of 32.6%, according to CBRE’s 2020 tech talent report).
The area is home to a life sciences hub called the Research Triangle that is funded in part by federal dollars and connects the University of North Carolina at Chapel Hill, Duke University in Durham and North Carolina State University in Raleigh.
The Research triangle, a life sciences hub, also calls Raleigh-Durham home. The hub connects the University of North Carolin, Duke University, and North Carolina State University.
With the housing market being slightly below the national average for costs, the annual tech salary in Raleigh-Durham exceeds the average national income. Coming in at an average of $100,000, this makes Raleigh-Durham even more affordable for tech employees when compared to areas like silicon valley or Austin.
Some of the biggest changes we have seen over the years in the rankings from the ULI report include New York’s Long Island area, which made a huge jump rising to the 10th spot from all the way down at 57! Additionally, Salt Lake City jumped to seventh place from number 22 in 2021, and San Antonio rose to number 12 from 24, joining other Texas areas like Dallas-Fort Worth and Austin in the top dozen spots. Washington-DC and Arlington, Virginia area moved up six spots to number 8 seed. On the contrary, Los Angeles dropped to number 28 from ninth in 2021, a slide that could have been influenced by the pandemic.
Orlando dropped down to number 24 seed from seventh in 2021 as its economy suffered from the loss of conventions and corporate meetings.
The city has the second highest proportion of jobs in the retail trade, leisure, and hospitality sectors among large U.S. markets. Orlando remains among the highest vulnerable city during the 2020 economic downturn, as the real sector was expected to be the hardest hit.
And while Austin and Nashville both remained in the top three spots this year, the cities have suffered economic blows from the pandemic. Austin and Nashville have both felt the shock in the hospitality industry, in particular, with big events being canceled and leaving hotels empty.
Both Nashville and Austin remained in the top three rankings in 2022, however, the cities have suffered some economic blows from the pandemic. Austin and Nashville have both felt shock in the hospitality industry with hotels struggling with lack of big events in 2020 and 2021.