Google, Apple, and VinFast have all recently announced plans to expand into the Raleigh-Durham area, making the Triangle a hotspot for the tech industry. With an influx of tech workers and residents, the housing market in the area is becoming more and more competitive.
You may be wondering how such a competitive market will impact you. Let’s take a look at who’s moving in, how they impact the local real estate market, and what you can do to navigate the competitive real estate landscape.
Big Tech Companies Coming to the Triangle
It’s no secret that tech giant Apple is moving in and bringing job opportunities with it.
“Apple announced in April 2021 that it would invest more than $1 billion in a new campus in Research Triangle Park that would employ at least 3,000 employees over the next 10 years. The massive campus is planned for the Wake County side of RTP, straddling N.C. 540 near Cary and Morrisville.”– MSN
In 2021, Google also disclosed their big move in the Triangle. “Google announced plans Thursday to create a hub in Durham, North Carolina, for hundreds of engineers working on its Google Cloud products…The site will eventually support more than 1,000 jobs and be one of Google Cloud’s top engineering hubs.”
You’ve probably heard a lot about the Apple and Google moves, but did you know Vietnamese car manufacturer VinFast is setting up shop in Chatham County?
“The company has revealed plans for its first U.S. factory in North Carolina, where VinFast will build its VF 8 and VF 9 electric crossovers as well as batteries, creating what it says will be thousands of jobs.The plant will be built at the Triangle Innovation Point ‘megasite’ in Chatham County, North Carolina, on an approximately 2000-acre plot.”
Apple, Google, and VinFast coming to the Triangle is a huge win for the Raleigh-Durham area. The companies are expected to bring thousands of jobs and add billions of dollars to the economy.
But how will their presence impact the real estate market?
Tech Companies ‘Stretch’ Tight Triangle Markets
“The impact of the new Apple and Google headquarters on the Raleigh, NC, real estate market is still unknown, but experts say the projects will ‘stretch’ the market.”– Triangle Business Journal
On the one hand, the Apple, Google, and VinFast projects are good news for real estate. They’re having a significant impact on the Triangle real estate market. The influx of new jobs has led to an increase in demand for housing. And that’s driving up prices and giving homeowners the benefit of significant appreciation on their properties.
On the flip side, it’s also making home buying a little more difficult as buyers compete for the limited number of available homes.
The Triangle was already experiencing climbing prices in the wake of the pandemic. Limited supply and increasing demand saw to that. Now, as the tech companies become established in the area, they’ll be creating more and more jobs that lead to higher and higher demand for housing.
Could that continue pushing home prices up even more? Definitely. It also has the potential to increase the amount of new construction as homebuilders attempt to meet the demand.
One concern about the rising prices has to do with affordability. In other cities where big companies have moved in, they’ve sent housing prices soaring so high they became unaffordable for middle-income earners.The result was the creation of more of a luxury home market that caters to those only interested in higher end real estate.
In mid-2022, Realtor.com reported that Raleigh’s median listing price was $494,000, an increase of 21.2% over the previous year.
How to Navigate the Tight Real Estate Market
While there are still a lot of questions about how the influx of big tech companies will impact the Triangle, you can be ready to buy or sell in a market that’s as competitive as it’s ever been. Here’s what you can do:
1. Get to know the Triangle’s real estate market — and particularly, the neighborhoods you like.
Familiarize yourself with the neighborhoods you’re interested in. If they’re in and around the headquarters of the tech companies, know that the demand for homes in those areas is likely to grow exponentially.
It’s that increasing demand that drives prices higher. Keep up with the prices and keep track of any changes. When you stay on top of what’s happening in the neighborhoods you’re interested in, you’ll be in the best position to buy or sell at an opportune time.
2. Know what you can afford.
In a hot real estate market where hungry buyers are willing to pay much more than asking price to get the house they really want, it’s tempting to go beyond your budget so you can snag the house you’ve been watching.
But stick to what you can afford. It’s better to wait for a house that fits your family and your budget than to get in over your head. So, know what you can spend. And stick with it. You can be flexible on your financing or on the closing date, but don’t go beyond what’s affordable for you.
3. Get pre-approved for a mortgage.
If you find a home you want to buy in a neighborhood you’ve been keeping an eye on, be prepared to buy quickly by getting pre-approved for a mortgage. Getting pre-approved shows the seller you’re serious about buying and have the financial resources to back up your offer.
4. Hire a real estate agent.
It may be tempting to save money and time by buying on your own without the help of a real estate agent. But it’s not always easy to navigate the constantly changing housing market.
Your local real estate agents know the market inside and out and can help you make the right decision for your family. They’ll also likely save you time and money in the long run because they’ll take care of the details while you plan your move to the new home.
If you’re in the market to buy, sell, or rent in the Triangle, reach out to our team at Gaskill Realty. We can help you make the best decisions for your family in an ever changing housing market.