Jon-Michael Brock

According to WalletHub's latest report, Cary ranks 3rd overall in the top real estate markets in 2024! The report evaluates metrics including home values, market days and building permit activity. Cary remains in the cheapest one-third of 300 cities included in the study for housing affordability, and when combining affordability with the broader economic environment, Cary places No. 5 in the country. Homeowners can also expect their value to increase by 1.3% annually, surpassing Zillow’s latest national forecast predicting 0.9% growth between July 2024 and July 2025. With a robust job market and a low unemployment rate of 3.8%, Cary also benefits from some of the lowest mortgage delinquency and foreclosure rates nationwide. July data from the North Carolina Department of Commerce shows that the Raleigh metropolitan statistical area, which includes Wake County, has 2.8% more jobs than it did a year ago. 

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The government-sponsored enterprise is forecasting rent growth of just 2.7 percent, according to its new midyear outlook. It also projects the vacancy rate to jump six percent, equating to a rental income boost of just 2.5 percent. For context, rental income growth is 20 basis points lower than the average on record from 2000 to 2022, according to RealPage. Freddie refers to its projections as "muted" growth. While Freddie notes the economy is healthy overall, the high supply of new units, pegged at a 40-year-high, is not meeting the multifamily demand. A couple of other elements leading to volatility are high interest and cap rates.

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Office to residential conversion is a capital intense investment at a time when existing multifamily properties face challenges in maintaining their own values. There's no easy answer. The real estate industry should give serious consideration to the benefits of a president who understands commercial real estate.

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