The 5 Best Places to Invest in Multifamily Real Estate in North Carolina in 2025!

North Carolina has emerged as one of the Southeast’s most compelling markets for multifamily real estate investment. With its diverse economy, growing population, and relatively affordable cost of living compared to many coastal states, the Tar Heel State offers investors a combination of stability and growth potential that’s increasingly rare in today’s market.

At PrimeX Capital, we’ve been actively tracking North Carolina’s multifamily landscape and have identified the five markets that present the strongest investment opportunities in 2025. Our analysis considers economic fundamentals, population trends, rental growth, development pipelines, and long-term appreciation potential to identify markets where strategic multifamily investments can deliver superior risk-adjusted returns.

1. Raleigh-Durham (The Triangle)

Economic Fundamentals

The Raleigh-Durham area, often referred to as “The Triangle” due to the three major research universities in the region (Duke University, University of North Carolina at Chapel Hill, and North Carolina State University), continues to lead the state in economic vitality:

•Job Growth: 3.2% year-over-year, significantly outpacing the national average of 1.8%

•Major Employers: Technology, life sciences, and education sectors dominate, with major employers including IBM, Cisco, GlaxoSmithKline, and SAS

•Research Triangle Park: The largest research park in the United States continues to expand, recently announcing a $1.5 billion innovation district

•Unemployment Rate: 3.1%, well below the national average

•Average Household Income: $89,000, the highest in North Carolina

Population Trends

The Triangle’s population growth remains robust:

•Population Growth: 2.3% annually, more than double the national average

•In-Migration: Consistently ranked among the top 5 metros for domestic migration

•Demographics: Strong millennial and Gen Z presence, with 38% of residents between 25-44

•Education Level: 47% of residents hold a bachelor’s degree or higher

•Projected Growth: Expected to add 250,000 new residents by 2030

Multifamily Market Metrics

The Triangle’s multifamily fundamentals remain strong despite new supply:

•Average Rent: $1,650 for a one-bedroom apartment, up 4.2% year-over-year

•Occupancy Rate: 95.3%, indicating strong demand despite new deliveries

•Rent-to-Income Ratio: 22%, indicating room for continued rent growth

•New Supply: Approximately 8,500 units under construction, representing 4.2% of existing inventory

•Absorption: Consistently positive, with new deliveries typically leasing within 6-9 months

Investment Opportunities

The Triangle offers several compelling investment strategies:

•Class B Value-Add: Older properties in established neighborhoods near employment centers

•Student Housing Conversions: Properties near universities that can be repositioned for student or young professional housing

•Suburban Garden Communities: Particularly in Wake Forest, Apex, and Morrisville

•Transit-Oriented Development: Areas along the planned light rail corridor

Neighborhoods to Watch

•North Hills: Mixed-use redevelopment has transformed this area into a live-work-play destination

•Downtown Durham: Ongoing revitalization has created strong rental demand

•Cary: Consistently ranked among the safest cities in America with excellent schools

•Morrisville: Proximity to Research Triangle Park drives strong rental demand

2. Charlotte

Economic Fundamentals

As the largest city in North Carolina and a major financial center, Charlotte’s economy continues to diversify and expand:

•Job Growth: 2.8% year-over-year, with particularly strong growth in financial services and technology

•Major Employers: Bank of America, Wells Fargo, Truist Financial, and Lowe’s headquarters

•Financial Sector: Second-largest banking center in the U.S. after New York

•Unemployment Rate: 3.4%, slightly below the national average

•Average Household Income: $84,000, second highest in the state

Population Trends

Charlotte’s population growth remains strong:

•Population Growth: 1.9% annually, well above the national average

•In-Migration: Significant influx from Northeastern and Midwestern states

•Demographics: Diverse population with strong millennial representation

•Education Level: 42% of residents hold a bachelor’s degree or higher

•Projected Growth: Expected to add 385,000 new residents by 2030

Multifamily Market Metrics

Charlotte’s multifamily market shows solid fundamentals:

•Average Rent: $1,580 for a one-bedroom apartment, up 3.8% year-over-year

•Occupancy Rate: 94.8%, indicating healthy demand

•Rent-to-Income Ratio: 23%, suggesting room for moderate rent growth

•New Supply: Approximately 10,200 units under construction, representing 5.1% of existing inventory

•Absorption: Strong but slowing slightly compared to previous years

Investment Opportunities

Charlotte offers several compelling investment strategies:

•Urban Infill: Older properties in gentrifying neighborhoods

•Suburban Value-Add: Particularly in high-growth areas like Huntersville and Matthews

•Workforce Housing: Addressing the growing affordability gap

•Mixed-Use Conversion: Repositioning older commercial properties in transitioning areas

Neighborhoods to Watch

•South End: Continues to transform with new development and strong rental demand

•NoDa (North Davidson): Arts district with growing appeal to young professionals

•Plaza Midwood: Gentrifying area with strong rental growth

•University City: Major employment center with UNC Charlotte driving demand

3. Asheville

Economic Fundamentals

Asheville’s unique economy blends tourism, healthcare, and a growing technology sector:

•Job Growth: 2.3% year-over-year, with particularly strong growth in healthcare and hospitality

•Major Employers: Mission Health (now HCA Healthcare), Biltmore Estate, and a growing craft brewing industry

•Tourism Impact: $2.6 billion annual economic impact from tourism

•Unemployment Rate: 3.2%, below the national average

•Average Household Income: $72,000, above the state average

Population Trends

Asheville’s population growth is steady but constrained by geography:

•Population Growth: 1.4% annually, above the national average but constrained by mountainous terrain

•In-Migration: Strong appeal to retirees and remote workers

•Demographics: Diverse age distribution with growing millennial and retiree populations

•Education Level: 39% of residents hold a bachelor’s degree or higher

•Projected Growth: Expected to add 45,000 new residents by 2030

Multifamily Market Metrics

Asheville’s multifamily market benefits from supply constraints:

•Average Rent: $1,520 for a one-bedroom apartment, up 4.5% year-over-year

•Occupancy Rate: 96.8%, among the highest in the state

•Rent-to-Income Ratio: 25%, indicating some affordability pressure

•New Supply: Approximately 1,200 units under construction, representing just 3.2% of existing inventory

•Absorption: Very strong due to limited new supply and geographic constraints

Investment Opportunities

Asheville offers several compelling investment strategies:

•Tourist-Oriented Housing: Properties that can accommodate both long-term rentals and short-term stays

•Workforce Housing: Addressing the significant affordability gap

•Boutique Multifamily: Smaller properties (20-50 units) that blend with the city’s character

•Senior Housing: Catering to the growing retiree population

Neighborhoods to Watch

•West Asheville: Gentrifying area with strong appeal to younger renters

•River Arts District: Former industrial area transforming into a creative hub

•South Slope: Growing brewery district with increasing residential demand

•Woodfin: Northern suburb with lower prices and good access to downtown

4. Wilmington

Economic Fundamentals

As a coastal city with a diverse economy, Wilmington offers unique investment opportunities:

•Job Growth: 2.0% year-over-year, with strength in healthcare, education, and tourism

•Major Employers: University of North Carolina Wilmington, New Hanover Regional Medical Center, and PPD (pharmaceutical research)

•Film Industry: Significant production facilities (“Hollywood East”) creating specialized employment

•Unemployment Rate: 3.6%, slightly above the state average but improving

•Average Household Income: $68,000, slightly below the state average

Population Trends

Wilmington’s coastal location drives steady population growth:

•Population Growth: 1.7% annually, above the national average

•In-Migration: Strong appeal to retirees and remote workers seeking coastal living

•Demographics: Balanced age distribution with growing retiree population

•Education Level: 36% of residents hold a bachelor’s degree or higher

•Projected Growth: Expected to add 60,000 new residents by 2030

Multifamily Market Metrics

Wilmington’s multifamily market benefits from geographic constraints and lifestyle appeal:

•Average Rent: $1,450 for a one-bedroom apartment, up 3.9% year-over-year

•Occupancy Rate: 95.7%, indicating strong demand

•Rent-to-Income Ratio: 24%, indicating some affordability pressure

•New Supply: Approximately 1,800 units under construction, representing 4.8% of existing inventory

•Absorption: Strong, particularly for properties with amenities appealing to both young professionals and active adults

Investment Opportunities

Wilmington offers several compelling investment strategies:

•Student Housing: Serving the growing UNC Wilmington population

•Active Adult Communities: Targeting the 55+ demographic without full senior services

•Workforce Housing: Addressing the needs of service industry and healthcare workers

•Vacation Rental Conversion: Properties that can serve both long-term and vacation rental markets

Neighborhoods to Watch

•Downtown Wilmington: Historic district with growing appeal to young professionals

•Midtown: Developing area with strong commercial growth

•Mayfaire: Eastern suburb with high-end retail and growing residential demand

•Carolina Beach: Coastal community with year-round appeal

5. Greensboro/Winston-Salem/High Point (The Triad)

Economic Fundamentals

The Triad region offers a more affordable alternative to the Triangle and Charlotte with a diversifying economy:

•Job Growth: 1.8% year-over-year, slightly above the national average

•Major Employers: Wake Forest University, Hanesbrands, BB&T (now Truist), and Honda Aircraft

•Manufacturing Renaissance: Advanced manufacturing creating higher-wage jobs

•Unemployment Rate: 3.8%, slightly above the state average

•Average Household Income: $65,000, below the state average but with lower cost of living

Population Trends

The Triad’s population growth is steady but accelerating:

•Population Growth: 1.2% annually, slightly above the national average

•In-Migration: Increasing migration from higher-cost markets

•Demographics: Balanced age distribution with growing university population

•Education Level: 32% of residents hold a bachelor’s degree or higher

•Projected Growth: Expected to add 120,000 new residents by 2030

Multifamily Market Metrics

The Triad offers some of the best value metrics in the state:

•Average Rent: $1,180 for a one-bedroom apartment, up 3.5% year-over-year

•Occupancy Rate: 94.2%, healthy but slightly below other major NC markets

•Rent-to-Income Ratio: 21%, indicating room for rent growth

•New Supply: Approximately 2,200 units under construction, representing 2.8% of existing inventory

•Absorption: Steady, with value-oriented properties performing particularly well

Investment Opportunities

The Triad offers several compelling investment strategies:

•Class B/C Value-Add: Significant opportunity to renovate older properties

•Student Housing: Serving Wake Forest, UNC Greensboro, and other institutions

•Downtown Revitalization: Urban properties benefiting from downtown investments

•Workforce Housing: Addressing needs of manufacturing and healthcare workers

Neighborhoods to Watch

•Downtown Winston-Salem: Significant revitalization with the Innovation Quarter

•Downtown Greensboro: Growing entertainment district driving residential demand

•Adams Farm (Greensboro): Suburban area with strong schools and amenities

•Kernersville: Strategic location between Greensboro and Winston-Salem

Investment Considerations Across North Carolina Markets

While each market has its unique characteristics, several factors apply across North Carolina’s multifamily landscape:

Regulatory Environment

North Carolina generally maintains a landlord-friendly regulatory environment:

•No statewide rent control measures

•Relatively straightforward eviction processes

•Reasonable property tax rates compared to many states

•Business-friendly local governments in most areas

Climate Resilience

Coastal and inland markets face different climate considerations:

•Coastal markets (Wilmington): Hurricane and flooding risks require appropriate insurance and building specifications

•Mountain markets (Asheville): Terrain and stormwater management considerations

•Piedmont markets (Triangle, Charlotte, Triad): Generally lower natural disaster risk

Affordability Advantage

North Carolina continues to benefit from its affordability compared to many coastal markets:

•Housing costs 20-40% below comparable Northeast and West Coast markets

•Lower cost of living attracting both residents and businesses

•Growing affordability challenges in the most desirable submarkets

•Opportunity for workforce housing in all major markets

Infrastructure Development

Several major infrastructure initiatives will impact multifamily values:

•Triangle: Planned light rail and bus rapid transit expansions

•Charlotte: Continued light rail expansion and airport growth

•Asheville: Interstate 26 connector project improving accessibility

•Wilmington: Port expansion creating logistics-related employment

PrimeX Capital’s North Carolina Investment Strategy

At PrimeX Capital, our approach to North Carolina multifamily investments focuses on several key principles:

Strategic Market Selection

We target submarkets with these characteristics:

•Job growth exceeding 1.5% annually

•Population growth exceeding 1.0% annually

•Diverse employment base with multiple growth sectors

•Strong educational institutions driving talent development

•Lifestyle amenities attracting and retaining residents

Oportunidades de valor agregado

We focus on properties where strategic improvements can significantly enhance value:

•Class B properties in A/B locations

•Operational inefficiencies that can be addressed through professional management

•Cosmetic and amenity improvements with proven ROI

•Properties with below-market rents and value-add potential

•Assets with scale (75+ units) to achieve operational efficiencies

Risk Mitigation

Our conservative approach includes:

•Stress testing investments across multiple economic scenarios

•Maintaining appropriate reserves for capital expenditures

•Focusing on markets with diverse employment drivers

•Implementing water and energy conservation measures to control expenses

•Securing long-term, fixed-rate financing when appropriate

Exit Strategies

We develop multiple exit pathways for each investment:

•Traditional sale after 5-7 year hold period

•Refinancing to return investor capital while maintaining ownership

•1031 exchange opportunities for tax-efficient transitions

•Potential for portfolio premium through strategic aggregation

Conclusion: North Carolina’s Multifamily Opportunity

North Carolina represents one of the most balanced multifamily investment markets in the Southeast, offering investors a rare combination of growth potential and relative stability. While each of the five markets we’ve highlighted has its unique advantages, all benefit from the state’s pro-business environment, quality of life, and continued in-migration.

For investors seeking multifamily opportunities in 2025, North Carolina’s diverse markets provide options for various investment strategies and risk profiles. From the high-growth, knowledge-economy centers of the Triangle to the more value-oriented opportunities in the Triad, the state offers compelling investment options for those who understand local market dynamics and implement thoughtful value-add strategies.

At PrimeX Capital, we continue to actively pursue multifamily opportunities across these North Carolina markets, focusing on properties where our operational expertise and strategic capital improvements can generate superior risk-adjusted returns for our investors.

Ready to explore multifamily investment opportunities in North Carolina? Contact our team at [contact information] or visit https://1primexcapital.com/ to learn more about our current offerings and investment approach.

This article is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Investment in real estate involves risk, and past performance is not indicative of future results. Potential investors should conduct their own due diligence before making any investment decisions. PrimeX Capital recommends consulting with a financial advisor regarding your specific situation before making investment decisions.