Five Points: the Gentrifying Pocket Attracting Young Professionals

Home prices in Raleigh's Five Points neighborhood reached a median of $485,000 for single-family homes in June, according to Wake County deed records, a 22 percent jump from $398,000 the prior June.

The increase tracks with Red Hat's continued hiring at its downtown campus and the opening of new office space along Hillsborough Street, which together added 1,200 jobs in the past 18 months. Young professionals priced out of Cary and Apex now see Five Points as the nearest walkable option with direct bus lines to both the state capitol and Research Triangle Park employers.

Buyers cite the short bike ride to the North Carolina Museum of Art's evening concerts and the weekly produce stalls at the Raleigh Farmers Market on Person Street as daily conveniences that larger subdivisions lack. The same blocks also sit inside the city's new bike-lane network that connects directly to the Dorothea Dix Park expansion project, now two-thirds complete.

Renovation Permits Signal Investor Interest

Wake County issued 147 residential renovation permits in the 27605 zip code through June, nearly double the 92 recorded in the first half of 2024. Local contractors report most work involves converting 1920s bungalows into three-bedroom layouts with home offices, a layout that matches the needs of remote workers at nearby companies.

Charlotte-based investment groups closed on 18 small multifamily buildings along the Glenwood Avenue corridor since January, according to property filings. Those purchases pushed average rents for a one-bedroom unit to $1,650, still below comparable space in Charlotte's NoDa district.

Next Steps for Buyers

Prospective owners should review current listings on the Triangle MLS before Labor Day, when several new listings from estate sales are expected to hit the market. Checking flood-zone maps for the low-lying blocks near the railroad tracks remains essential before any offer.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.