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RENT | DOWNTOWN MULTIFAMILY AVERAGE RENT 2015-2018 Average rent in downtown grew 9% in the past year as a major influx of supply from 2015-2016 was absorbed and few new units entered the market. Rent for Class A units also saw a 9% increase in the past year. Average Rent 2015

$1,600 $1,519

$1,400

$1,425 $1,432

$1,444

$1,389 $1,265

$1,200 $1,000 $990

$800

$851

Average Rent 2016

$1,344 $1,325

Average Rent 2017

$991

Average Rent 2018

$894 Source: Integra Realty Resources

$600 $400 $200 $0 Downtown Class A MSD

Greater Downtown Class B + C

Downtown Overall Rent

AFFORDABLE OPTIONS REMAIN IN DEMAND Low vacancy and rising rent indicate a strong demand for affordable options in and near downtown. With little existing supply in downtown built before 2000 and a rapidly increasing population in the city and region, most of the older apartments that may decline in value due to new supply will not likely be in the CBD. • 96.4% occupancy for Class B and C apartments, slight decrease from 2017 • 16% growth in rent for Class B and C units since 2015, though, flat in 2017

AFFORDABLE DOWNTOWN RELATIVE TO PEERS NATIONALLY Downtown Raleigh has a lower median apartment rent per square foot than several peer CBDs. Downtowns like Austin and Nashville, along with more established CBDs, have median rents well above $2.00 per square foot.

MEDIAN RENT PER SQUARE FOOT AMONG PEER DOWNTOWNS $5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $.50 $0

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LIVING | 29

2018 State of Downtown Raleigh Report  
2018 State of Downtown Raleigh Report