What’s the hottest Triangle ZIP code for new apartments? Hint: It’s not in Raleigh.
As one of the fastest growing regions in the country, the Triangle is seeing a major uptick in new apartment construction.
But one ZIP code has outperformed others in fueling the surge: 27560, which encompasses the town of Morrisville.
This ZIP code alone built more apartments than entire towns and cities, including Cary and Chapel Hill, adding 2,625 units in just five years, according to a new RentCafe study.
That translates into a 44.5% supply growth.
“All of these newly built units are in the high end,” RentCafe’s Felicity Domentii said in an email. That’s because residents living there, on average, “earn almost twice the metro average.”
Close behind is 27607 in downtown Raleigh near North Carolina State University’s main campus. It saw 1,688 new apartments built over the same period, a 55% jump in supply.
Rounding out the top three is ZIP code 27610. It’s in Raleigh and includes portions in Knightdale, Garner and Clayton. It added 1,662 new apartments between 2018 and 2022. Only 34% of its newly built apartments fall into the “high-end” category, Domentii said.
Among the report’s other findings: While some neighborhoods in the Triangle may not be at the top of the list in terms of new apartment numbers because of original stock, they’re still seeing supply surge.
For example, ZIP code 27526 in Fuquay-Varina more than tripled its supply of apartments — from 563 in 2017 to 1,781 in 2022 — a 216% boost. That’s the fourth highest percentage growth in the nation.
Nationwide, Washington, D.C., dominated the top five with two ZIP codes — 20002 and 20003 — taking first and second places, respectively, with more than 14,000 total apartments built in the last five years.
Massive shortfalls remain
Some 10,922 apartments are on track to be built in the Raleigh-Cary metro area by year’s end — hitting a six-year peak and surpassing large hubs like Seattle and San Francisco, another RentCafe study found.
While inventory is edging up slowly and the market is starting to normalize, the Triangle is still facing a massive housing shortfall.
The Raleigh metro area alone needs at least 17,000 more units, according to a recent Zillow study.
However, there are bright spots for Triangle homebuyers, said Matt Fowler, executive director of Triangle MLS, a real estate listings platform.
“Particularly for those in the market for “more affordable, smaller housing” outside of the city,” he said. “The area is not uniform; it’s a collection of communities, each with their own demand and supply metrics.”
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