Investors Add Competition in Triangle Real Estate
Real estate investors are responding quickly to North Carolina’s growing economy and soaring popularity.
North Carolina’s Research Triangle area real estate sees rising popularity among remote workers, tech professionals, and commuters. From Apple’s recent announcement about upcoming offices to the general rush of remote workers finding new opportunities in an area with a lower cost of living, workers are heading to North Carolina in droves. The Triangle housing market has stayed competitive throughout the year, with home values increasing and bid amounts skyrocketing.
However, data shows that it’s not just Zoom commuters and future Apple employees who are grappling for an existing home in the area. In the second quarter of 2021, Raleigh saw a 234% year-over-year increase in the portion of single-family home and condo purchases by institutional investors. Who are these investors, and how does their activity impact the housing market in Raleigh NC and surrounding areas?
Who are the investors?
A quick data dig shows that real estate investors, from iBuyers to Zillow to individuals buying up more than ten homes in a year, have become much more active in one of North Carolina’s most flourishing areas. Buyers like Opendoor and Zillow are playing a major role in increasing competition in the Research Triangle. Their interest comes in response to rising home values, continued strength in the market, and rising demand from both buyers and renters.
In addition to the volume of homes these investors have already scooped up, their impact on the market also stems from their loftier budgets. One Realtor.com report suggests that Charlotte has seen some of the steepest changes in the housing market due to investor activity, tightening up an already tight market.
Battling out other buyers was difficult enough in the RTP housing market due to low housing inventory, but coming up against investors with deep pockets in the bidding war for an existing home is virtually instant death for buyers. When you’re up against an investor with 100K over asking price to bring to the table, it’s tough to compete.
What’s next for buyers?
The economic growth and exploding popularity of North Carolina in the past few years has pushed many buyers to the edge of their patience. Now, Raleigh real estate investing activity and still-rising competition makes the prospect of buying an existing home in the Tarheel state feel all but impossible. While the housing market has begun to cool down in many parts of the U.S., it looks unlikely that things will get easier for North Carolina homebuyers any time soon as housing inventory count remains low.
Instead of joining in on the bidding wars and competitive frenzy, many buyers are turning instead to custom homebuilding. Swap the stressful process of over-compromising for existing homes that don’t quite meet your needs, and instead build a home of your own design.
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