Editor’s Note: Each Friday, WRAL TechWire takes a deep dive into the Triangle’s real estate markets. This week: The latest data on rents may show price of rents in Raleigh are stabilizing, and why right now might be the best time to buy a house in the Triangle, especially for first-time homebuyers.
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RALEIGH – Renting a place to live in Raleigh got a bit easier in September, a new report shows.
The region saw a decline in the median rent price of 2.4% from the month prior. An earlier report from Apartment List found that apartment costs had declined in Raleigh during September, as well.
Still, though, rents are much higher than they were a year ago.
But according to a new report which tracked the largest 50 rental markets in the nation, the Raleigh -Cary core-based statistical area saw the seventh-highest decrease in median rental price month-over-month.
Still, though, the region also ranked seventh for the largest year-over-year rent gains between September 2021 and September 2022, at a rate that was twice that of the latest inflation figures.
The report, conducted by Rent.com, also noted two key industry developments.
Good news for renters: Apartment costs in Raleigh decline in September
Rent prices may be stabilizing, but inflation is still high
Even if rental markets in Raleigh and across the nation are showing signs of stabilization, the consumer price index data may not show stable cost of shelter. That’s because of how renting a residence typically works, with lease terms of one year or longer in many cases.
So if asking rental rates are falling, that may take some time to show up in how the U.S. Bureau of Labor Statistics reports on the inflation rate of the cost of shelter.
In order to measure the cost of shelter changes, analysts at the Bureau of Labor Statistics collect data once every six months, which includes people with existing rental leases on their property.
Now might be best time to buy a house in Triangle – here’s why
Some homeowners may choose to rent their homes instead of selling
Last month, a Redfin report noted that 85% of homeowners who have fixed-rate mortgages below 5% are likely to stay in their homes rather than considering listing and selling their homes.
Or, if they did wish to move into a new residence, they may now consider converting their existing primary residence into a rental property rather than sell in real estate markets that have softened since earlier in the year.
While that may hinder the supply of homes available to purchase, homeowners who convert a property into a rentable unit would be adding rental supply.
That could make a huge difference in the Triangle, too, as housing demand remains high with continued in-migration of workers and others who are choosing to move to the region.
In the Triangle, rents rose faster than the median sale price of homes for sale between September 2021 and September 2022.
That’s one reason that some first-time homebuyers are entering or resuming a search to buy their first home in the Triangle, despite mortgage interest rates near 7%.
Housing pain: Raleigh rents soar at double rate of inflation – 7th highest in US
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WRAL TechWire reporter Jason Parker, the author of the report and a licensed real estate agent in North Carolina, works with journalists from WRAL.com to track and present market data and report on how people are experiencing the region’s changing real estate markets. These special reports will use the category tag “Triangle Real Estate” or “Triangle Real Estate Market.”
