Transaction activity in the Raleigh Durham multifamiy sector picked up during the first quarter of the year, with sales volume exceeding $680M in the first quarter. In 19 property transactions, average sales per unit reached over $143,000 while average cap rates were compressed to 5.1%.
Annual effective rent growth is forecast to be 3.1% in years 2018-2021 in the Raleigh market. Annual effective rent growth is forecast to be 3.4% in 2018 in the Durham-Chapel Hill market.
Raleigh effective rents were reported at $1,062 per unit per month,providing a slight dip in the percentage growth rate per year. The average effective rate per square foot was $1.09 at the close of the first quarter. In the Durham-Chapel Hill market average effective rates per square foot held steady at $1.12.