The Triangle, which is the culmination of Raleigh, Durham, and Chapel Hill, is growing at a tremendous pace.
Though it's also been known for decades as the bed of high-tech research universities like Duke, NCSU, and UNC, the growing presence of large technology companies is nearly perpetual. Apple just announced a new campus in Morrisville that will bring in 3,000 jobs and billions in North Carolina investments. Additionally, Google announced a new campus in downtown Durham, bringing nearly 1,000 jobs to the Bull City.
With all the new campuses coming to the Research Triangle Park area, or RTP, there will be demand for large infrastructure projects in transportation, building, urban design, and real estate. We'll need supporting jobs in all service sectors to sustain an influx of people, and these people will need housing that's close to the things they care about. But with the seemingly crazy real estate market of the past few years, how can these people afford housing that fits their needs?
With co-living we can.
Co-living represents a new model for both people looking to move, and for real estate investors trying to build a portfolio. So, what is co-living? (You can read more here to understand it).
Assuming you understand how it works, co-living is growing tremendously.
With co-living, housing efficiency grows as the conversion to multiple "units" within a home creates a larger market for professionals seeking housing close to work and other activities. When you list your home on Alcove, your investment property will be filled with professionals who each pay their own portion of rent and utilities. This allows flexibility and affordability for them, and with our revenue-sharing model, greater returns for you.
Investing in rental real estate can net you solid cashflow in Raleigh-Durham. However, this cashflow has been lower than other markets due to low price-to-rent ratios (many not hitting the 1% rule). Because rents in Raleigh-Durham have stayed relatively low compared to the price of the homes being sold, rentals returns were suppressed. And while we don't believe this will go on forever, renting out a home traditionally (to a family of four), doesn't generate the best return for investors.
Co-living allows you to generate higher returns than traditional renting, sure.
But where in Raleigh-Durham should you be buying to get the best match for co-living? Frankly, we know anywhere within the city limits of Raleigh and Durham will bode well for returns, but more specifically, we'll list some areas that are great investments now and in the future.
Based on our data and research, these are the best places to buy investment properties in Raleigh-Durham include (in no particular order):
West Cary near I-540 (where the new Apple campus is being built)
RTP near highway 147 and Triangle Expressway
South Durham near Southpoint Mall
North Durham near Costco
South Durham - Hope Valley
Downtown Durham - near NCCU
downtown Durham - near Golden Belt
Northwest Raleigh - near Umstead Park
Northeast Raleigh - on the way to Wake Forest
East Raleigh - near Neuse River
South Raleigh - near Garner
South Raleigh - near I-40/440
These are just a few places in the Raleigh-Durham area that are great for investment properties.
If you're curious to learn more about why Alcove is a great option for real estate investing, read more here!