Raleigh was designated as one of the five star markets for consumer momentum in 2026 thanks to factors like job growth, steady in-migration and a diversified economy, according to a recent Placer.ai report.
Raleigh’s “relatively low median age and strong labor market” are, as stated in the report, key elements “fueling demand for premium dining and retail,” resulting in increased foot traffic at upscale mixed-use developments such as the $134M Smoky Hollow, located at North Hills Street, and the $191M Fenton urban village project.
Much of Raleigh’s economic success can be traced to its status as a hub for education, technology, life sciences and healthcare as part of the Research Triangle region, which also comprises Durham and Chapel Hill.
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The city’s 7,000-acre research park draws many young professionals to the area; the 2020 census stated Raleigh’s median age is 34.9 years.
The city is one of five metro areas that saw its population grow more than the average U.S. city between 2023 and 2024, according to the report.
Since 2020, the Raleigh-Cary metro area has grown by 10.2% to 1.6 million people, according to Axios. The Durham-Chapel Hill metro area grew 6.6% during that period to around 621,000.
“This combination of robust job creation, wage gains, and a growing pool of young, high-spending residents positions Raleigh as one of the most dynamic consumer markets in the Southeast heading into 2026,” Placer researchers said.
The research park is home to more than 300 companies that see approximately $6B of research each year. Apple and Google each have a $1B campus in the area.
However, not every commercial real estate sector is as well-positioned as retail for success in 2026.
For example, the Raleigh-Durham area has been grappling with a glut of postpandemic multifamily construction, which has pushed vacancy rates up and kept rents low.
While the metro region has fared better than much of the rest of the Sun Belt in vacancies, the number of new multifamily buildings is forcing more than half of Raleigh landlords to offer concessions to tenants. The concession rate for Raleigh landlords is about 45% higher than the national rate.
However, Rob Reid, residential managing director at Kane Realty, has a glass-half-full view of Raleigh's multifamily market, saying the concessions are a sign of a competitive market ironing out its kinks.
“Strong fundamentals attracted record development, and now we're working through that supply,” Reid told Bisnow. “It's healthy market dynamics.”
Reid said absorption has been strong, with net move-ins at “cyclical highs.” And, he said, concessions have been trending downward after peaking in Q4 2024.
“Developers saw Raleigh’s growth story and built to meet it,” he said. “Now, we’re absorbing that wave at record demand levels, further signaling the long-term vibrancy of the Raleigh multifamily sector.”
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