Raleigh’s Projected Growth in Luxury Real Estate
Raleigh’s Projected Growth in Luxury Real Estate
The Raleigh area is no stranger to tech companies. Research Triangle Park was built in 1959, and it has been a national technological hotspot for decades, especially when paired with the concentration of local universities.
Mansion Global’s recently published article, “A Population Boom, a Tech Boom—Raleigh, North Carolina, Shows No Sign of Slowing Down,” speaks to Raleigh’s luxury real estate expansion and its connection to the tech industry’s success.
The article explains how Raleigh’s population grew by 11.4% between 2018 to 2023, and a recent survey by United Van Line listed Raleigh in the top five inbound destinations with 20% more people moving into the city than out. These population growth trends are expected to continue.
The Downtown Raleigh Alliance wrote in their annual report that the construction of residential units (about 3,000 under construction and plans for 7,000 over the next 10 years) is shifting the downtown landscape into “dense, walkable neighborhoods” with 94% occupancy rates.
Mansion’s Global article highlights how the influx of younger, successful tech professionals, founders, executives, and entrepreneurs are an important factor in the growth.
“The luxury real estate market in Raleigh is increasingly appealing to a broader range of high-net-worth individuals, for whom proximity to downtown areas and tech hubs like RTP is critical,” said Jim Wiley, president of Beacon Street Development.
In particular, popular areas for luxury home development and redevelopment include:
- the historic Hayes Barton neighborhood, where Birney Park housing development is currently under construction, with condominium prices ranging from $1.8 million to $3 million and City Homes prices ranging from $3 million to $4 million. Additional construction is planned through 2027.
- the Warehouse District, with high-rise condos and upscale amenities.
- North Hills and the Midtown district, with walkable, mixed-used development that’s attractive to young tech workers, according to Kruger. He also explained the increase of pricey single-family properties here. “Everything in this corridor is $2 million-plus new-construction homes, and whereas a $2 million house near downtown is 2,500 square feet on a tenth of an acre in north Raleigh, it could be 5,000 to 6,000 square feet on an acre lot,” he said.
- Cary, which – home to many local tech giants and New York transplants alike – is seeing the same, tall narrow modern homes and luxury condos of Downtown Raleigh in its own downtown, said Kruger.
Demand for luxury homes is also expected to stay high. Downtown Raleigh Alliance reported that the median $427-per square-foot list price has risen 31% since 2020 in Downtown Raleigh, and new development sells out quickly.
Additionally, a luxury market report from Long & Foster Real Estate said that in July 2024, new $1 million home listings in the Durham-Raleigh-Chapel Hill triangle rose more than 44%, while sales at that price level increased 7% from a year earlier. Similarly, in July 2024, Zillow said that Raleigh’s median luxury price of $1.5 million was a 7% increase over July 2023.
As you navigate luxury real estate in Raleigh, Cary, and the Triangle area, let the team at Barker Realty be your guide. A local real estate company since 1984, we can help you find success in both your commercial and residential real estate goals. Contact us today.
