Housing construction across the country progressed more rapidly in exurbs and suburbs than in principal cities over a 10-year period (2013 to 2022). The renewed interest in suburban living can be attributed to several factors, including the impact of the pandemic and its aftermath. Larger living spaces in less-dense environments became a priority for many, even as it meant moving away from city cores. The urban exodus was further fueled by limited housing inventories and affordability issues, which have made it difficult for many to find suitable and affordable homes.
North Carolina follows the general trend, as the state’s suburban areas enjoy increased popularity. But principal cities are also holding strong to their appeal for both in-state and out-of-state newcomers.
Cities like Raleigh, Charlotte, and Durham stand out as major hubs of development, attracting new residents with their strong job markets and vibrant communities. Both Raleigh and Charlotte are excelling in accommodating the influx of new residents, faring much better than many other urban centers in expanding their housing markets.
Raleigh — drawing from its thriving tech industry, top-tier universities and rich cultural heritage — experienced a 12% population increase over a 10-year period, closely mirrored by the expansion of its total housing inventory by 18%. This translates impressively to over 15,000 single family homes and 16,000 apartments built in the city over the past decade.
Similarly, Cary, one of the principal cities in the Raleigh metro area, has undergone a decade of intense home-construction activity. Its total housing inventory increased by 28%, resulting in over 11,500 single family homes and nearly 4,000 new apartments. Cary has also seen its population rise by 24%, reflecting its appeal as a desirable place to live within the dynamic Raleigh metro region.
However, the fastest-growing place in the Raleigh metro area is actually a suburb, namely Fuquay-Varina. This charming and rapidly expanding town appeals to many due to its blend of small-town ambiance and modern conveniences. From 2013 to 2022, Fuquay-Varina registered an astonishing 73% growth in its total housing inventory. During the same period, its population swelled by an impressive 85%, indicating that the surge in housing construction was a direct and necessary response to massive demographic changes.
Most of the new inventory in Fuquay-Varina consists of single-family homes, reflecting the preferences of residents who value extra space. This is particularly relevant as 21% of the local population works from home, in need of larger living areas to accommodate home offices and other needs.
Apex and Knightdale are two other suburbs in the Raleigh metro area that have also excelled in new housing construction. Apex expanded its housing inventory by 73%, while Knightdale saw a 68% increase over the same 10-year period. These suburbs, like Fuquay-Varina, have benefited from the broader economic and demographic trends in the region, attracting new residents with their appealing mix of residential options, quality schools and proximity to Raleigh’s job market.
The nearby metro area of Durham-Chapel Hill concentrates most of its housing inventory growth in its main city, Durham, and, interestingly, in one of its outer suburbs, Mebane. Durham managed a 23% rise in its total housing inventory, adding over 15,500 single family homes and 8,300 apartments. Despite this growth, home prices in popular Durham increased by 75% during the analyzed decade, once again emphasizing the need for space in a city where currently 18% of the population works from home. With its large student population, on top of the residents working from home, the need for extra space can be pressing in Durham — fortunately, the city also increased its self-storage inventory by almost 50% over the past decade, to a total of 3.1 million square feet of space.
The small yet up-and-coming suburb of Mebane saw a 45% expansion of its total housing inventory, mirroring a 51% population growth. One of Mebane’s strongest points is its affordability compared to Durham. While a single-family home in Durham goes for over $316,000, a similar home in Mebane can be purchased for around $264,000. This price difference makes Mebane an attractive option for those looking to balance cost and proximity to the amenities of Durham-Chapel Hill.
Moving over to Charlotte, the Queen City is one of the top 10 large cities nationwide for housing inventory increases. We’re looking at an 18% enlargement of the total inventory, driven by the construction of nearly 27,000 single family homes and over 30,000 apartments from 2013 to 2022.
Charlotte’s economic prowess is a major factor behind its expanding population and housing market. However, we should also mention here the city’s commitment to expanding and improving its public transportation system has also played a crucial role. Enhancements in public transit have made previously less accessible areas more attractive for residential development, supporting the growth of housing inventory across a broader range of neighborhoods.
But as with the other metro areas, the highest growth rate in terms of housing inventory shows up in suburban areas. Waxhaw stands out as the fastest-growing area in the Charlotte metro region, reflecting the broader trend seen across North Carolina and nationwide. With an 83% increase in housing inventory, the town has added 2,700 new single-family homes to accommodate its rapidly growing population.
Waxhaw’s allure lies in its family-friendly environment, excellent schools and convenient access to Charlotte’s bustling job market, making it an ideal location for those seeking more space and a high quality of life. However, this quality of life certainly translates into higher costs: The average single-family home in Waxhaw touches on $450,000, compared to $313,000 in Charlotte. Other rapidly expanding suburbs in the metro area include Mooresville, Belmont and Davidson.
While suburban areas across North Carolina are expanding at remarkable rates, reflecting a national trend toward increased suburban living, the state’s large cities are also thriving. This dual growth pattern highlights the state’s robust economic health and its ability to attract residents to both urban and suburban environments. On a national level, the shift toward suburban expansion is evident, driven by factors like the search for more space and the appeal of a quieter lifestyle. However, North Carolina demonstrates that major urban centers can also perform excellently, maintaining their allure for newcomers.