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Thriving Tech Center Aids High-Income
Job Growth and Warrants Supply Wave
Highly educated renter base brightens outlook. Raleigh’s vacancy rate was near 7 percent at the onset of 2025 — the highest level since 2009 — due to elevated supply over the last two years. With another large completion slate scheduled for 2025, the market will be further tested. Balancing this influx, however, is solid demand. Net absorption is expected to set an annual record this year. Standout leasing will be driven by the metro’s highly skilled workforce, as approximately 45 percent of the population held a bachelor’s degree as of 2024. Raleigh’s Research Triangle Park will continue to attract both white-collar professionals and large businesses. As the area’s roster of tenants continues to grow, the limited land available for proximate residential development may drive long-term expansion within neighboring submarkets such as South and East Durham, as well as Northwest Raleigh. A limited 2025 pipeline in these three submarkets, with a combined 1,500 new units, should aid fundamentals at existing properties amid localized population growth. Elsewhere, significant office development in the North Hills of Northeast Raleigh will be accompanied by nearly 1,600 new apartment units in 2025.