Over 60 years ago, in 1959, the North Carolina Research Triangle Park (RTP) was created to combat the state’s perceived ‘brain drain’ of graduates from its top institutions. Graduates of North Carolina’s top tier universities - Duke, the University of North Carolina at Chapel Hill and North Carolina State University - would move geographically to find jobs in the Northeast. The aim was to encourage home-grown talent to remain at home, simultaneously signalling to companies in the engineering, science and research spheres to come to North Carolina for the talent.
In 1965, IBM expanded into the Triangle setting the stage for the next 50 years of research and business in the area. Now, over 170 innovative companies have set up facilities and offices within the Triangle to harness some of America’s brightest talent, such as Cisco, Biogen Idec, Syngenta, Bayer CropScience, the US Environmental Protection Agency and many more.
The RTP, a commuter hub for more than 89,000 employees, has meant demand for housing in the area and within the confines of its three cities: Durham, Chapel Hill and Raleigh. Over the past 15 years or so, the Triangle has been attracting young professionals back to the cities. Consequently, there has been a rise in the development of disused spaces such as warehouses, new mixed-use developments, a rise in craft, independent and boutique retail, and a development of the restaurant scene.
The ascension of Raleigh is indicative of the positive effect the RTP has had on the area. With more skilled, high-paid workers in the area, the cities have reaped the benefits of better house prices, increased development and better amenities. Raleigh used to be the centre for the American Tobacco Company, with the city experiencing a high crime rate and abandoned factories, the city you seem today is a remarkable, prosperous difference.
Last year, the 41st annual report of the Urban Land Institute and PWC awarded Raleigh-Durham as the 2nd best place to live in the US. The report utilised a variety of factors, including technology sector jobs and real estate investment, to calculate their rankings. Mitch Roschelle, a PwC Partner notes that “even though we are late in the expansion cycle, volatility in global financial markets, coupled with global geopolitical instability continues to drive investors towards U.S. real estate. The asset class remains desirable as investors seek predictable cash flows from tangible investments”.
What does this mean for homebuyers in North Carolina? Raleigh, Durham and Charlotte all benefit from the RTP in a number of ways. Firstly, house prices int he Raleigh are have increased 10.7% YoY from 2019, standing at around $234,000. Over the last 5 years, house prices have increased by 35% in the area. With demand for the services and innovations of these technological, biochemical and computing companies forecast to increase over the next decade, Raleigh will likely see an increase in population, demand for housing and investment, so now is the time to buy in North Carolina.
Find the right investment for the future of you and your family in Raleigh with Propeterra. Contact Propeterra today to see how you could maximise your investment in the strong US property market.