Mid-income Raleigh households gained over $153K in home value over decade, report says
Middle-income homeowners in Raleigh built $153,440 in wealth from home appreciation over the last decade, according to a new report from the National Association of Realtors (NAR).
That’s $31,400 more in wealth than nationwide for households making a median income of roughly $93,630 annually.
In Durham-Chapel Hill, it’s slightly lower at $140,740 – but still $18,670 more than nationwide. In Durham, the median income for middle-income earners is estimated at $77,650 annually.
“Higher income in the Raleigh metro area seems to be one of the reasons that homeownership rate for both low- and middle- income households is larger in this area than the national level,” Nadia Evangelou, NAR’s senior economist, said in an email to The N&O.
However, not everyone has the same opportunities to own homes. The data showed substantial variations and inequalities in homeownership rates across different income, racial and ethnic groups.
For example, while Triangle households saw wealth gains across all income levels, low-income homeowners in Raleigh were only able to build $114,520 in wealth on a median income of $29,630. Compare that to upper-income households that saw an increase of $178,370 on a median income of $203,840.
Among racial and ethnic groups, Asian homeowners accumulated the largest wealth gain at $260,930. Black homeowners experienced the smallest 10-year gain at $145,130 – but that was still $29,700 more than nationwide.
In Durham-Chapel Hill, low-income homeowners built $104,260 in wealth on a median income of $24,180, while upper-income households bumped their wealth by $170,440 on a median income of $173,190.
Black homeowners saw wealth gains at about $156,700. This means that homes owned by Black Americans appreciated faster in Durham compared to Raleigh and nationwide. Hispanic homeowners saw the smallest gain at $133,180.
For the report, NAR used the American Community Survey’s Public Microdata Sample to estimate the homeownership rate and the median home value of homes owned across the income spectrum and racial and ethnic groups at the national and metro level.
Building wealth through homeownership
Overall, local experts say they’re not too surprised by the findings.
“If the purpose of this study was to make the point that ownership of real property is a tremendous way to create wealth, absolutely,” said Stacey Anfindsen, an Apex appraiser who analyzes Triangle Multiple Listing Service (MLS) data.
“I mean, we in the business already know that.”
On the flip side, he said, the region is facing a growing housing affordability crisis after two-plus years of plummeting inventory and sky-high home prices.
“How are you going to get people out of the low [bracket] and into the middle with that kind of [median income]?” he said. “With house prices going up, it makes it awfully tough. It works for the middle and the high [earners], but not the low.”
Derrick Thornton, a realtor with Coldwell Banker Advantage out of Northeast Raleigh, also expressed concern.
“One of the unfortunate growing pains I foresee is homeownership rates across the board remaining stagnant or even decreasing,” he said.
Low income, Black or Hispanic households are likely to be hit the hardest, he said.
“Income for these households has not risen anywhere near the rate of home values,” he said.
The housing affordability index shows that the median income for the area is too low to qualify for a mortgage for a median-price home, Thornton said.
Looking forward, Maya Galletta, a Realtor at RE/MAX United Cary, said it’s critical to increase access to homeownership for all income levels. She’s seen the benefits firsthand.
“A Hispanic couple purchased a home from me about five years ago near downtown Cary with 10% down, five of which was a gift from their employer,” she said. “Today that home is worth $350,000 more than what they purchased it for. Think about how different life is knowing they have this nest egg.”
