property
Build-to-Rent Developments and What They Offer Tenants
New rental communities in Raleigh give tenants access to amenities and flexible leases while home prices climb past $425,000.
How we reported this
A 312-unit build-to-rent community opened on Six Forks Road in North Raleigh on June 15, with one-bedroom apartments leasing from $1,850 a month and two-bedrooms at $2,350.
The project arrives as median single-family home prices in Wake County reached $425,000 in May, up 6 percent from the same month last year, according to county assessor data. Rising mortgage rates near 6.8 percent have pushed monthly payments on a $340,000 loan above $2,200 before taxes and insurance, narrowing the gap between renting and buying for many households.
Two projects illustrate the shift. The Residences at North Hills includes a pool, fitness center and co-working lounge available to all tenants without extra fees. Across town, the Brier Creek Village rental community on Brier Creek Parkway added 180 homes in April with included lawn care and a dog park. Both sites sit within five minutes of major employers along the I-540 corridor.
Renter Costs Versus Buyer Payments
At the North Hills site, a three-bedroom unit rents for $2,900. The same floor plan purchased with 20 percent down at current rates would carry a mortgage near $3,400 monthly once property taxes and insurance are added. Tenants avoid maintenance calls and closing costs that average $8,500 in Raleigh, though they forgo equity buildup.
Wake County planning records show seven build-to-rent approvals filed since January, concentrated near Crabtree Valley Mall and the Six Forks corridor. Average rents in these communities run 12 percent below comparable older apartments in the same zip codes, developers told the city zoning board in May.
Next Steps for Local Renters
Prospective tenants can review floor plans and income requirements on the North Hills and Brier Creek websites or visit leasing offices this week. City housing counselors at the Raleigh Housing Authority office on Wilmington Street recommend comparing total monthly costs, including utilities that many build-to-rent operators now bundle into one bill.
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.