RESEARCH TRIANGLE PARK – How will rental markets be impacted by the influx of jobs coming from Apple, Google and other economic development projects?
Well, apartment demand already is high – so expect prices to go up.
So says Greg Brown, UNC Kenan Institute Professor of Finance.
On the impact of Apple’s announcement last week, Brown noted that the Triangle will, on the whole, be better off with Apple than without it, but that there are costs that will come along with Apple’s campus. “Those costs are not always evenly born,” said Brown, “if you’re someone working a lower paid retail job in the Triangle, having your rent go up a few hundred dollars is a meaningful expense for you.”
And that shift is coming in an already tight rental market, said Neil Gerstein, an analyst for Zumper.
According to a recently released national rent report authored by Gerstein, the Durham rental market ranked No. 30 in the country based on price, but with a nearly 30 percent rental rate increase year-over-year for one-bedroom rentals in the region, the highest such gain of any city studied by the firm.
“The new complexes built and the new jobs that come with them could result in an influx of renters into these markets,” said Gerstein of the recent announcements from Apple, Google, Invitae, and other firms. “This could further increase the rate at which demand is outpacing supply in these markets and could lead to rental prices increasing even more.”
George Ratiu, a senior economist for Realtor.com, said landlords are watching.
“Growth in the employment base, and just as importantly an influx of higher salaries to the area is expected to lead to higher purchasing power, effectively allowing people to pay more for housing,” said Ratiu. “Landlords are likely to respond to this by increasing rents in the metro areas. The advance in rents is also likely to broaden geographically, impacting surrounding areas, as well.”