Rallying Residential in Raleigh
Before we dig into residential market trends in Raleigh, you may be wondering what Hurricane Florence’s impact was on the region. Click here to read an assessment provided by residential research firm Metrostudy on the storm’s impacts on North Carolina’s major homebuilding markets.
While recovery efforts are ongoing in the southeastern and coastal regions of North Carolina, little to no damage has been reported to new home construction in the state’s major markets. Raleigh is no exception; it continues to build on nearly a decade of post-recession market growth.
This sustained activity has attracted new regional and national players, as well as new professionals, to the homebuilding and development market in the Triangle. We sat down to ask Project Manager Mike Roselli about a few of the trends he sees that are important when building project schedules and budgets.
Well, everything is busy across most product types. And I am not a market analyst by any means. The first thing that comes to mind based on the project looks we are getting is the continued first-time homeowner boom in Wake County. The $400,000 and under starter product seems to be unable to keep up with demand.
Well again, with so much demand in the broader Triangle region, there is movement everywhere. To continue with first-time and entry markets, we see people trading longer commute times to be able to buy more house. For example, areas outside the beltline such as Zebulon, Angier, Wake Forest and Fuquay-Varina are increasingly hot. Increasing land prices are the driver for this pattern – the deals that make sense in this demographic only pencil where the land is still available and priced for entry and mid-level housing product returns.
The first thing I think about based on how we add value to projects is the sheer volume of projects coming through the review process. While it sounds relatively administrative, growing communities are inundated with so many project submittals that they are having hard time maintaining review cycles for comments and feedback. I’d recommend developers and builders work with their consultants to factor in this variable, especially when developing in a new community.
We’ve found that providing up-front due diligence for numerous potential development sites has been tremendously helpful to our clients to create more options with less hurdles. Our team helps clients identify the best development opportunities through means such as preliminary cost estimates and yield calculations. Our growing survey team is another secret weapon for clients.
We strive to reduce survey lead times during the due diligence process to get clients up and running quickly and with thorough information from which they can make educated purchasing, planning, and production decisions.