Raleigh-Durham area multifamily market makes strong showing

The Raleigh-Durham area has drawn investors with its strong multifamily market, Multifamily Executive recently reported. Properties have sold for surprising amounts, with one organization selling several properties for $7.5 million more than they cost two years previously.

Development activity has also increased. The proximity to North Carolina State University, Duke University and UNC-Chapel Hill is one factor which may be contributing to the growth. These schools are part of a research and technology focused area expected to show job growth in the near future.

Employment growth is predicted to remain near 3 percent from this year through 2014, driven in part by large technology employers and an emerging trend in life sciences. The Raleigh-Durham metropolitan area's population has grown by more than 200,000 residents and vacancy rates have dropped in recent years to a current level of 5.8 percent, with a further decrease expected before the end of the year.

This year in particular, rent growth of almost 5 percent is predicted. Growth is also expected to continue for the next 4 years, by 4 percent or more each year.