Triangle’s softening rental market: No deposits, waived fees, two months free rent
No deposits, waived fees, up to two months free rent.
These are just some of the special offers that apartment-hunters in the Triangle should expect, say observers, as rents dip across the region.
In Raleigh, the median rent (mid-point value) for a one-bedroom fell 2.3% to $1,270 in February, according to Zumper’s rent report released this week. Prices are down 7.3% year-over-year.
Rents for two-bedroom units are a little more steady, dropping just 1.3% to $1,550 last month and 1.9% year-over-year.
Out of 100 cities nationwide, Raleigh ranked as the 55th most expensive city to rent.
In Durham, the median rent for a one-bedroom is down 2% to $1,450 last month, Zumper found. But year-over-year, prices are up 3.6%.
Two-bedroom units fell 2.3% to $1,700, but are up 3% year-over-year. That ranked Durham as the 28th most expensive city, higher than Raleigh.
Easing prices are largely due to new supply hitting the market, Zumper’s analyst Crystal Chen said.
“Property owners are more incentivized than ever to prevent units from sitting empty,” she said in an email.
A post-pandemic construction boom saw some 10,922 apartments hit the Raleigh-Cary market in 2023, an earlier RentCafe study found. That’s a 3.8% jump in new stock and among the highest in the country — way above the national average of 1.9%.
Renters who are looking to move this year will see concessions, Chen said. For those who’d prefer to renew their lease, “they’ll likely see a minimal increase, if any,” she added.
Indeed, a number of move-in deals are currently on offer in Raleigh, Axios reported. Many of them are in new, amenity-rich buildings. Among them: one month free for two-bedrooms at Park and Market in North Hills; and two months free at The Signal in Seaborn Station.
In Durham, The Ramsey on Pettigrew Street is offering six weeks free if you move in by March 31.
The influx of new supply is also impacting Class C apartments, where rents are down 6% year-over-year, according to RealPage analyst Jay Parsons.
“Simply put: supply is doing what it’s supposed to do,” he posted on X, formerly Twitter, on Feb. 28. “New pricey apartments are pulling up higher-income renters out of moderately priced Class B units, which in turn cut rents to lure Class C renters, and on down the line it goes.”
Incentives are “a strong signal that we’re done seeing prices jump by as much as 30% in one year, like in 2021 and 2022,” added Derrick Thornton, a Realtor with Coldwell Banker Advantage in Northeast Raleigh and a board member of Raleigh Regional Association of Realtors.
“Rising inflation has caused many home buyers to become far more critical. Renters are no different.”
This story was originally published March 4, 2024 at 5:30 AM with the headline "Triangle’s softening rental market: No deposits, waived fees, two months free rent."
