News Summary
The Raleigh-Cary metro area is projected to add nearly 5,884 new rental apartments this year, yet construction has dropped significantly by 44%. After a boom in 2024, when over 10,500 new apartments were built, the current slowdown marks a shift in housing dynamics. While the overall supply ranking improved, challenges like rising interest rates, material costs, and labor shortages are impacting new projects. Developers continue to invest in various projects, signaling ongoing growth despite the slowdown in construction activity.
Raleigh-Cary Metro Area Experiences Significant Drop in New Apartment Construction Despite Growth
The Raleigh-Cary metro area is projected to add approximately 5,884 new rental apartments by the end of the year, reflecting ongoing population growth and economic expansion. However, the pace of new apartment development has slowed considerably compared to recent years, marking a notable shift in the local housing landscape.
Steady Growth Amid a Contraction in Construction Activity
Following a robust post-pandemic construction boom that saw the area surpass cities like Boston and Los Angeles in apartment deliveries, the current construction pipeline has experienced a 44% decline.
In 2024, the Raleigh-Cary area delivered over 10,500 new apartments. This year’s projected figures represent a significant slowdown, with the number of newly completed or under-construction units falling by nearly half. Out of 369 metropolitan areas analyzed, Raleigh-Cary’s decline ranks as the 12th largest.
Despite this decrease, the area’s overall ranking for apartment supply improved from 24th to 20th nationally, indicating continued growth relative to other markets.
National Trends and Regional Contributions
Across the United States, new apartment construction remains below last year’s record levels but remains strong when viewed against historical averages. It is estimated that the country will jointly add more than 500,000 new rental units this year, driven significantly by the southern U.S., which accounts for over half of all new rental housing.
This regional dominance stems from ongoing job growth and economic activity in southern states, making construction and rental housing development highly active there.
Local Developments and Projects
Within the Raleigh-Cary area, several notable projects are underway or planned. In Raleigh, developers are adding about 2,150 new apartment units, though the figure is down from previous years. Cary is set to see the opening of the Meridian East Chatham, a 220-unit building, along with the Meridian Cary development, expected to open later this year with 195 units.
Other Triangle localities are also increasing their apartment offerings, including Knightdale with 1,289 units, Holly Springs with 593 units, Apex with 525 units, and Morrisville with 450 units.
Factors Behind the Construction Slowdown
Several economic and regulatory factors have contributed to the slowdown in apartment construction. Rising interest rates, increased material costs, and a labor shortage are making new projects more expensive and complex to execute.
Additionally, recent tariffs imposed on steel, aluminum, and lumber—by the federal government—have further increased construction expenses. Prices for aluminum have risen by 5.5% month-over-month and 22.8% year-over-year. Steel prices have increased by 1.5% monthly and 13.1% annually, while lumber and plywood saw a 0.5% rise month-over-month and a 4.8% increase annually.
These rising costs have led to project cancellations, delays, or scaling back of plans, impacting the overall construction pipeline.
Market Dynamics and Housing Preferences
Despite these setbacks, the multifamily housing market remains relatively resilient, particularly when compared to single-family home construction. The latter has experienced declines in most regions during the second quarter of 2025, mainly due to affordability issues, including high mortgage rates and a shortage of labor.
Developer Activity and Investment Trends
Developers such as Mungo Homes are continuing to invest actively in the Triangle market. Mungo Homes has land acquisitions and plans for at least 10 active or future communities. Notable projects include the 600-home Ovation at Sweetbrier subdivision and the 1,850-home Banks 20 development.
Meanwhile, approximately 35% of apartments in the Raleigh metro area are owned by private equity firms, the highest concentration nationally. This ownership structure has correlated with an increase in renters classified as “cost burdened”, indicating difficulty in affording housing.
Recent legal actions have targeted some major landlords over alleged collusion in rent increases, revealing ongoing issues related to property ownership and rent management within the region.
Future Developments and Strategic Projects
The local government and private stakeholders continue efforts to diversify housing options. A prominent upcoming project is Alston Yards, a $500 million investment aimed at developing a mixed-use area in west Cary. The project will feature hundreds of apartments, retail spaces, and a hotel, with construction scheduled to start in 2026.
Strategically situated near the proposed Apple campus in Research Triangle Park, Alston Yards exemplifies a major development aimed at supporting the region’s ongoing growth and attracting future residents and businesses.
Overall, while the pace of new apartment construction in the Raleigh-Cary metro area has slowed significantly, the market continues to adapt with new projects and strategic investments, maintaining its position as a key growth area nationally.
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Additional Resources
- News & Observer: Raleigh-Cary Metro Area Development News
- Wikipedia: Raleigh, North Carolina
- Axios: Private Equity Ownership in Raleigh
- Google Search: Raleigh Cary Housing Market 2025
- ABC11: Alston Yards Project in Cary
Author: STAFF HERE RALEIGH WRITER
RALEIGH STAFF WRITER The RALEIGH STAFF WRITER represents the experienced team at HERERaleigh.com, your go-to source for actionable local news and information in Raleigh, Wake County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the North Carolina State Fair, Raleigh Arts Festival, and the Hopscotch Music Festival. Our coverage extends to key organizations like the Greater Raleigh Chamber of Commerce and Visit Raleigh, plus leading businesses in technology and education that power the local economy such as Red Hat and NC State University. As part of the broader HERE network, including HEREAsheville.com, HERECharlotte.com, HEREGreensboro.com, and HEREOBX.com, we provide comprehensive, credible insights into North Carolina's dynamic landscape.
