Raleigh's Booming Tech Scene and Its Impact on Real Estate
Raleigh's Booming Tech Scene and Its Impact on Real Estate
Are you interested in Raleigh's booming tech scene and its impact on the real estate market here? Here is all you need to know about the tech and real estate here in Raleigh.
Raleigh is a southeast city that is sometimes overlooked. It is the capital of North Carolina and is a popular place for homeowners due to its booming economy, excellent educational institutions, and affordable housing market.
On the other hand, Raleigh is home to a large number of technology companies, including IBM, Cisco Systems, and Lenovo, making it a hub for innovation and entrepreneurship. With the growth of technology these days, the need for more housing has led to an increase in the demand for homes in Raleigh.
Technology is rapidly advancing, significantly influencing every industry, including real estate. The incorporation of innovative technologies in real estate is revolutionizing the way this industry operates and driving its success.
The real estate market is a cornerstone of the global economy, set to soar to approximately $729.4 billion by 2028, according to a Statista report. Once hesitant to embrace digitization, real estate is now actively engaging with cutting-edge technology trends.
The relentless advancement of technology is rapidly reshaping how real estate professionals interact with clients and conduct their business. Proptech, or real estate technology, is revolutionizing property transactions and management in multiple ways. In the coming years, technology will drive a significant transformation in the real estate industry.
Here is what you should know about Raleigh's booming tech scene and its impact on real estate.
Chapters
1. Raleigh Real Estate Market Stats
As of May 2024, Raleigh home prices were up 7.5% compared to last year. On average, homes in this area sell after about 17 days on the market, which is faster than last year, which was 53 days. According to the Triangle MLS, below are some stats on the current housing market as of June.
| Median Sales Price | $421,250 (3.7% increase) |
| Closed Sales | 640 (-2.0% decrease) |
| Active Inventory | 1,160 (14.9% increase) |
| Home Affordability | 77 |
The current housing market in Raleigh strongly favors sellers, with an imbalance of more buyers looking to purchase homes than there are homes available. Though many homes are still on the market, be prepared for higher prices and quick sales.
As of March 2024, the prices of homes in Raleigh have risen by 5.1% compared to the previous year. Homes typically sell within 16 days of being listed, so quick action is essential if you seek a home in one of Raleigh's prime neighborhoods.
Raleigh's status as a technology, education, and research hub is expected to drive significant economic and population growth through 2024. As a result, there will be high demand for housing, although the total number of homes available in March 2024 was 22% lower compared to last year.
2. Key Players in The Strong Housing Market
The two top key players in Raleigh's robust housing market are STEM (science, technology, education, and mathematics) jobs, which are on the rise. Raleigh also offers a great work-life balance due to outdoor activities, cultural venues, and great weather year-round.
Due to the presence of Research Triangle Park, many STEM jobs are available in this area, along with major universities that attract people seeking high salaries and quality education. Additionally, other STEM jobs offer better pay, leading to an influx of healthcare workers finding employment in top-notch hospitals.
Raleigh also offers numerous outdoor parks, walking trails, water activities, arts, sports, nightlife, and a thriving food scene. These factors have led many individuals to relocate to Raleigh for its lifestyle and opportunities, thereby impacting the real estate market.
Raleigh is highly sought after for many reasons, with the economy and abundant job opportunities being at the forefront. The rise of technology has made Raleigh even more appealing, thanks to the presence of the Research Triangle Park and the influx of major tech companies.
According to an article in the News and Observer, rising home prices in the area and the increasing number of rentals have ranked Raleigh as #6 on the list, showing that this area is a popular place to relocate to and live.
3. Tech Companies Coming to Raleigh
Since Research Triangle Park is the largest leading research and science park in North America, Raleigh continues to welcome large corporations from all over the world. This has caused a huge job market explosion over the last five years, and there is no sign of slowing down anytime soon.
North Carolina is also home to 12 Fortune 500 company's headquarter facilities, according to the latest Fortune 500 list. The top five companies remain Walmart, Amazon, Apple, CVS Health, and UnitedHealth Group. With Apple opening an east coast hub in the Triangle, the area is expanding drastically.
With such a large pool of talent and relatively low cost, it's not hard to see why many businesses are moving to this area. Many companies, such as Microsoft and Apple, have announced their headquarters relocation to Raleigh. These new companies will join other billion-dollar industries already located here.
The impact of all the new tech companies moving to Raleigh can be unknown, but most experts say the projects will stretch the market. With these large tech companies relocating here, it's good news for the market. They are bringing an influx of new jobs that have led to an increase in demand for housing, which is driving prices up and giving homeowners the benefit of significant appreciation on their properties. Still, it is also making it harder to get home.
If you are interested in the complete Major Employers Directory that contains companies located in Wake County and the Research Triangle Park, check them out here.
4. How To Navigate The Tight Real Estate Market
There are many questions about the influx of big technology companies and what their impact will be on the market. The market may be highly competitive, but here are some things you should know to navigate the tight real estate market.
- You should know the neighborhood and what type of location you like. Keeping up with the prices and demands of a certain area will help you when you are ready to buy or sell.
- Knowing what you can afford will help you find a house that fits your budget and save money to buy it.
- Get preapproved for a mortgage. The market is fast and competitive, so having this pre-approved mortgage will show how serious you are and offer you the financial resources you need.
- Hire a real estate agent. You can do all the research you want, but having a real estate agent will help you save time and money.
With and without the booming tech scene making its way to Raleigh, the real estate world can be hard to navigate. Knowing the housing market, trends, economy, and the evolution of the world around you all play a huge role in real estate. Having a trustworthy agent is a great way to keep up to date on the market so you can easily navigate without wasting time or money.
Numerous technologies will change the way homes are sold, bought, and managed in 2024. Those who fail to adapt may risk falling behind the competition. The real estate world is competitive, so keeping up with the new trends is essential for your business and your overall finances.
5. Raleigh's Tech Economy
Raleigh stands as one of the most sought-after cities in the US, boasting some of the largest businesses and most highly educated professionals globally. The job market in Raleigh has experienced a 3% growth over the past year, with a predicted future job growth of 44% over the next decade, surpassing the national average.
Cutting-edge platforms are rapidly emerging to streamline multiparty real estate transactions, saving valuable time and enhancing organization. These technologies encompass secure and legally compliant processes, as well as straightforward file sharing, all contributing to heightened efficiency and reshaping agent-client interactions.
Technology is poised to dominate the real estate landscape, introducing innovative tools and services that will reshape traditional industry practices. Staying abreast of these trends is imperative for maintaining a competitive edge in this dynamic sector.
The Wall Street Journal has ranked Raleigh as the fifth hottest job market in America, making it one of the best places in the country to launch a small business. With a median household income of $78,631, Raleigh is undoubtedly one of the nation's most affordable places to live. According to the U.S. Bureau of Labor Statistics (BLS), the unemployment rate for individuals 16 years and older in Raleigh is impressively low at 3.3%.
The city has demonstrated significant progress in recovering from the impact of the COVID-19 pandemic in 2020. The job market is poised for exponential growth, offering excellent prospects for job seekers. It is essential to note, however, that the poverty rate in Raleigh stands at 12.1%, slightly exceeding the national poverty rate of 11.6%. Additionally, the minimum wage in Raleigh aligns with the national average of $7.25 per hour.
Methodology
We used information from different sources and our data to create this guide on Raleigh's booming tech scene and its impact on real estate. There were various data to use, so we put them together to help you understand the tech world in Raleigh.
Above are a few sources we used to gather most of our information about Raleigh's booming tech scene and its impact on real estate.
FAQS
Is Raleigh becoming a tech hub?
Today, Research Triangle Park and its surrounding area, which includes Raleigh, have become one of the United States' foremost innovation hubs in areas such as tech, life sciences, agritech, and clean tech.
Why is Raleigh booming?
Raleigh is rising as one of the best cities in America, largely because of its increased investment in the local community's arts, culture, dining scene, and the area's natural amenities.
What is the biggest industry in Raleigh, NC?
Raleigh boasts a robust technology and research industry that propels innovation and economic growth throughout the region. The top sectors, technology and research, hold the spot for the largest leasing industries in the area.
Raleigh's Booming Tech Scene and Its Impact on Real Estate - The Bottom Line
Raleigh, part of the RTP area, is home to many of the nation's leading research universities and organizations. Due to this Triangle area, North Carolina ranks among the top three states in the country for bioscience employment and has been the global leader in vaccine research and manufacturing, among many other industries.
Due to all of these factors, Raleigh has become one of the fastest-growing and highly desirable tech hubs in America. This area is starting to bust at the seams with potential and possibility. North Carolina is experiencing its own tech gold rush, and with the growth, this area is bringing in newer technology supporting all these companies.
While new jobs and employment opportunities are coming to this area, so are the people and the population. The increase in population has led to an increased demand for housing. With the tech scene entering Raleigh, Raleigh's real estate market and the neighboring suburbs are about to become highly competitive.
If you are considering moving or selling, contact us or visit our website. Our team at Raleigh Realty is here to help you with any home buying or selling needs.
Ryan Fitzgerald
Hi there! Nice to 'meet' you and thanks for visiting our Raleigh Real Estate Blog! My name is Ryan Fitzgerald, and I'm a REALTOR® in Raleigh-Durham, NC, the owner of Raleigh Realty. I work alongside some of the best Realtors in Raleigh. You can find more of my real estate content on Forbes, Wall Street Journal, U.S. News and more. Realtor Magazine named me a top 30 under 30 Realtor in the country (it was a long time ago haha). Any way, that's enough about me. I'd love to learn more about you if you'd like to connect with me on Facebook and Instagram or connect with our team at Raleigh Realty. Looking forward to connecting!
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