Key Takeaways:
- Meta announced its plans to join Big Tech companies like Amazon and Apple in The Triangle
- Economists worry that the influx of job opportunities and relocations might out-pace the real estate market
- Continued economic growth means good news for Triangle buyers and sellers alike
The Growing Job Market in the Triangle
As Meta, the parent company of Facebook, announced recently that they would be joining other tech giants like Amazon and Apple in the Triangle, economists express a wide range of predictions and opinions about how it will affect the current residents and the future of the Raleigh Area.
Meta’s decision to open an office here could be attributed to Google and Apple’s recent decisions to set up shop in the Triangle as well as the high level of education that’s present in our area. Big companies draw even bigger companies, foster more innovation and create an overall stronger and more competitive job market.
In addition, thousands of big-tech jobs means thousands more people making big-tech money to add cash flow to our local economy with increased spending at local restaurants, local shops, entertainment, etc.
On the other hand, it’s no secret that with an announcement like this comes the promise of thousands of jobs added to our market and therefore, thousands more people moving to an area that’s already growing exponentially. Some economists see the announcement negatively and predict that adding such a high level of competition to the job market will only make it harder for lower-income groups to build wealth and succeed long-term.
What Does This Mean for the Real Estate Market
Given that our area handled growth relatively well when RTP was first established, it bodes well for future growth as big companies continue to invest in building offices in the area. However, some economists predict that on top of the housing shortage that we were already feeling in the Raleigh area, adding another tech giant could mean growth that outpaces a healthy housing market.
The median home price in Raleigh currently sits just above $400,000 and it’s not out of the question to think that home prices could continue to rise significantly if not double in the next 5-10 years. While this presents challenges for buyers, it could mean great news for sellers as home equity will continue to rise and investments will continue to be lucrative over the next decade.
For people who are considering whether they should buy now or wait to see where the market goes in the near future, it adds a sense of urgency to buying as growth in the real estate market seems more sure than ever.
The Future of The Triangle
Huge tech companies are seeing employees securing housing ahead of their relocation to the Triangle Market and with the real estate being so fast-paced, many movers are choosing to live in rented housing versus purchasing a home because it’s easier to do virtually. This, in turn, affects the decision of whether new land will be developed into homes for sale or rentable housing to suit the growing market.
As investing in real estate continues to be one of the best ways to build long-term wealth, it’s more important now than ever for builders to create affordable, purchasable housing so that people can purchase homes that will grow with the economy.
It’s the hope of many residential builders that they might be extended similar tax incentives that companies like Meta, Apple, and Amazon have enjoyed that will make it more compelling to build affordable “starter homes.”