We’re often asked what makes Durham a good place for real estate investment, so today we’re going over the three things that really make this area stand out when it comes to choosing a place to invest.
Equilibrium of the Market
Durham historically has a balanced real estate market which has provided safety and stability for investors. There are not too many buyers taking a small amount of inventory, which is what creates instability or price fluctuations in some of the other national markets. That stability is an important consideration.
Makeup of the Market
Durham and the surrounding areas are host cities to many fine universities and a great community college system. This attracts a lot of young people who earn more than the national average in salary. Their financial stress is also lower, which means you get a great pool of tenants to choose from. Another factor is that it’s a fun, dynamic area with a lot of energy. It has a great restaurant and food scene going on, there are a number of popular walking trails and the healthcare system is second to none. The Durham area also attracts retirees who provide good stability to the market and favorable tenancies.
Price Appreciation in the Market
Durham has not had the price fluctuations we’ve seen in other markets nationally. The prices have been stable and the values of properties have been protected. Most estimates anticipate that Durham prices will increase two and a half to three percent each year. This is important for two reasons. First, it allows your initial investment to appreciate. Second, it allows rental rates to increase. Rents typically go up two to three percent every year.
As always, we recommend you consult a professional accountant and work with a property manager when you’re buying investment property. If you have any questions, please contact us at Phoenix Property Management. We handle thousands of rentals in the Research Triangle area, and we’d be happy to work with you.