Why Raleigh Multifamily Is a Buyer’s Market — And Not a Builder’s

Raleigh-Durham is digesting record apartment deliveries, but sales comps show investors buying well below replacement cost. Here’s why the Triangle is a buyer’s market in 2025.

The Raleigh-Durham multifamily market is working through its largest supply wave in history. More than 14,400 new apartments delivered in the past year, pushing vacancies above 11% and forcing concessions across new Class A lease-ups. On the surface, that looks like oversupply. But demand tells another story: the Raleigh-Durham market absorbed more than 11,600 units in the last 12 months, double the long-term average.

At the same time, construction has slowed dramatically. Starts peaked at 16,000 units in 2022 but are now down to fewer than 5,000. By 2026, that shrinking pipeline should set the stage for tighter vacancies and renewed rent growth. Sales comps already show properties trading around $225,000 per unit – well below replacement cost. Suburban B and C assets are holding occupancy better than luxury towers and providing immediate yield at attractive bases.

Compared with other Southeast markets, Raleigh-Durham offers a rare mix of strong demographics, powerful job growth, and discounted entry pricing. Charlotte and Nashville may deliver greater scale, and Richmond may look steadier, but the Triangle’s fundamentals point to one clear takeaway: in this cycle, it’s smarter to buy than to build. “In this cycle, patience pays — you can buy below replacement cost today in Raleigh, and be well-positioned when the fundamentals snap back,” said John Zemet, Chief Investment Officer at APG Companies.

APG Companies provides full-service advisory across site selection, 1031 exchange strategies, buyer and seller representation, and negotiation advisement. Our team leverages deep research and market knowledge to help investors navigate today’s cycle with confidence. Learn more at www.apgcre.com.