At Zonda’s Raleigh Dealmakers event, industry leaders pointed to the region as one of the nation’s top markets to watch, fueled by durable employment growth and long-term demographic tailwinds. Raleigh experienced record household formation in 2025, supported by its steady pipeline from its university system and major health care employers and strong migration.
Economic Backdrop
That strength has translated into income growth, with median household income reaching approximately $99,000 in Raleigh compared with the $84,000 U.S. median. Still, while the economic backdrop remains favorable, housing is adjusting to a more normalized demand environment as affordability holds the market back. In fact, total sales have declined from peak levels and are flat-to-down compared to the past couple of years.
A More Balanced Market
As a result of slower sales, inventory levels have increased significantly, now up year over year and compared to 2019. Resale months of supply have climbed to roughly four. While that is not necessarily high, it does represent a more balanced market and is nearly double where it stood last spring. Days on market have also risen as buyers take more time to make decisions.
The good news for the building community is that the pricing gap between new and existing homes has narrowed dramatically, shrinking from an 18% premium historically to about 4% in 2026. This, combined with incentives, has helped new construction remain competitive but is also reflective of a change in product availability; the region has seen a structural pivot toward attached housing, with Raleigh’s attached share rising from 14% 10 years ago to 35% today.
What to Expect Next in Raleigh
Looking ahead, Zonda experts and local builder experts agreed that Raleigh’s growth story is intact, but the pace will be more measured in the near-term. Demand drivers, including a highly educated workforce, strong in-migration, and family formation trends, continue to support long-term housing needs. However, execution has become critical. Builders emphasized the importance of disciplined pricing, product positioning, and faster decision-making to manage carrying costs and maintain absorption.
The insights in this article were taken from Zonda’s recent Raleigh Frame presentation.
