What housing recession? That’s why it’s still so expensive for buyers and renters in the triangle

RALEIGH, NC (WNCN) – Home prices in the Triangle continue to rise — for both renters and buyers.

According to a study, both one- and two-bedroom apartments in Raleigh cost more than 40 percent in July than they did a year ago. Another considers a Cary zip code one of the hottest homes in the nation.

One expert called the Triangle’s increasingly expensive rental situation “a perfect storm” two months ago, and things don’t seem to have changed much since then.

But how can housing costs continue to rise in the Triangle when larger-scale house prices begin to fall and homebuilders say the US could be in for a “housing recession”?

“We often talk about the housing market at the national level, but of course within it there are hundreds, even thousands, of smaller housing markets, all moving at different speeds,” said Hannah Jones, economic analyst at Realtor.com.

Jon Leckie, a data reporter for the site formerly known as Rent.com, says these falling home prices could actually bring relief to renters — eventually.

“Short story: If house prices go down, I think rents will go down,” Leckie said. “I think rents will follow house prices with a little lag.”

That hasn’t really happened yet. At least not around here.

The average one-bedroom apartment in Raleigh cost $1,840 in July — 42 percent more than this time last year. That increase is even higher — almost 45 percent — for a two-bedroom apartment costing $2,058, according to Rent.

Those averages are even higher than two months ago when a Raleigh one-bedroom was $1,564 and a two-bedroom was $1,927.

The website says rents have risen in every state except one — Idaho.

Raleigh is one of three communities that Rent designates as an overlapping city, with another — Greensboro — just off Interstate 40 due to this significant migration of all bedroom types.

A closer look reveals several North Carolina cities on Rent’s list.

A one-bedroom apartment in Greensboro is 74 percent more expensive than last year. Two-bedroom apartments are also significantly more expensive in Durham (54 percent), Fayetteville (43 percent), and Greensboro (43 percent).

Much of the higher prices tenants are facing could be due to higher interest rates on home loans turning potential buyers back into tenants. These prices appear to have peaked in June.

“In the short term, all of these levers that the[Federal Reserve Board]unwinds will only make housing more expensive,” Leckie said. “That will make rents more expensive. But I think things will kind of get worse before they get better.”

Realtor.com ranks 27511 in Cary as one of the hottest ZIP codes in the nation. In this area – which spans the area north of US 1 and US 64, east of Apex and west of Interstate 40 – properties spent an average of eight days on the market between January and June with a median selling price of $442,000.

ZIP code 27712 in Durham was in the top 30, while another in Burlington (27217) was in the top 45.

“They’re seeing even greater demand because they offer an alternative to expensive markets and offer buyers the opportunity to become homeowners even though prices are rising everywhere right now,” Jones said.

https://www.cbs17.com/news/local-news/wake-county-news/what-housing-recession-heres-why-its-still-so-expensive-for-buyers-renters-in-the-triangle/ What housing recession? That’s why it’s still so expensive for buyers and renters in the triangle

Dais Johnston

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