One major NC city is among 10 cities that’s primed for a real estate recovery.  The Raleigh/Durham area is likely to escape the commercial real estate scourge and transition soon to a bona fide recovery.  Raleigh has a vacancy rate of 14.7%, up 3.6 points from last year, 2008. 

A mix of government jobs, higher ed, health care, and technology has helped this progressive area pull off a neat trick: Population is growing at a healthy 3 percent rate, but the unemployment rate remains one of the lowest in the state. Vacancy rates will rise slightly in 2010 and some tenants will get a break on rent, but metro area residents may soon be wondering, what recession? (U.S. News)

Raleigh and its Cary suburb make up the fastest-growing metropolitan area in the country. According to the U.S. Census Bureau, the combined population of Raleigh and Cary grew to 1.1 million between July 1, 2007, and July 1, 2008—a 4.3 percent jump.

Raleigh has held up relatively well during the economic downturn, thanks to the city’s diverse economy. Industries with a strong presence in Raleigh include pharmaceutical and biotech, information technology, health care, clothing and apparel, and telecommunications. Major employers include the state government, North Carolina State University, IBM, Rex Healthcare, WakeMed Health & Hospitals, and SAS Institute.

A huge driver of the city’s economy is the Research Triangle Park, located between Raleigh, Durham, and Chapel Hill. Often compared to Silicon Valley, this science hub draws talent from the area’s major universities and is home to some 170 companies, most of which are involved in high-tech and biotech fields. Companies located in or near Research Triangle Park include Cisco Systems, GlaxoSmithKline, and IBM.

The Raleigh real estate housing slump hasn’t been as severe as in many other regions. In 2008, the median home sale price was $180,000, and home sale prices increased between 2007 and 2008 by an average of about 1 percent.   

Overall, Raleigh/Durham will make a great area to invest in buy and hold real estate.  Due to the dodging of the real estate price boom, the area will experience a mild reduction in home prices and will be one of the first to recover well. 

If you are interested in investing in this great area, be sure to sign up on our VIP buyers list so that you will be informed of new wholesale deals as they become available.