Looking for a strong rental real estate market to invest in rental properties? The Raleigh rental investment market continues its strong showing. Below, we share some of the Raleigh, North Carolina rental market numbers, and benefits of investing in Raleigh. With years of experience in the local market, the team at Red Door Company are your Raleigh, Durham and Chapel Hill property management experts. Contact us today with any of your questions regarding owning rental properties in Raleigh and the surrounding areas.
Raleigh Rental Market Rankings
How does demand for rental homes in Raleigh rank among other U.S. markets? According to a recent article in the Triangle Business Journal, “The market for rental and investor-owned homes in the Raleigh-Cary metro area continues to be ranked among the ten strongest markets in the U.S.” A Q2 2015 Rental Ranking Report cited in the article placed the Raleigh rental investment market number 7 overall in the United States. Raleigh ranked number 2 among Southeast rental markets.
Numbers Behind Raleigh’s Rankings
What’s behind Raleigh’s rental market rankings? For one, the Raleigh-Cary metro area had an exceptionally low vacancy rate of 3.1 percent. The second-quarter report also shared that the Raleigh market saw a 4.02 percent gain in median rents, had a property appreciation rate of 4.89 percent, ranked 6th in the rental Unit Availability Index, and featured low property tax and annual homeowners insurance premium rates. That same report stated, “Raleigh rental property owners can expect their investments to become even more lucrative in coming quarters.”
Strong Raleigh Job Market for Tenants
When thinking of investing in rental properties, you should also look at the local market’s economy. Simply put, tenants need jobs to pay the rent, and they will move to cities with thriving economies. This is good news for real estate investors considering buying rental properties in Raleigh. CNN Money recently ranked Raleigh #1 in its listings of the 10 Best Cities for Jobs. And based on its job-growth rate and low unemployment, Raleigh landed at #4 in America’s Fastest-Growing Cities 2015 rankings by Forbes.
Tenants Love Raleigh’s Quality of Life
Another factor which should play into your decision on what rental real estate markets to invest in – and one which bodes well for Raleigh, North Carolina – is the quality of life. What do tenants look for when it comes to quality of life? Restaurants, recreation, higher education opportunities, a tech-focused job market, lower cost of living: These are just a few of the quality of life factors which help Raleigh, as well as Durham and Chapel Hill, rank among the best places to live, work and play.
Smart real estate investors look to purchase rental properties in thriving markets which will deliver the highest return on investment. The numbers continue to point to the Raleigh rental investment market being a smart place for landlords to own rental homes. If you would like to learn more about the Raleigh, Durham and Chapel Hill rental property markets, please do not hesitate to contact the property management experts at Red Door Company.