Raleigh-Durham Real Estate Blog

(Business Week, 10/14/08)

Durham, the home of Duke University and the world’s largest Research Park (Research Triangle Park) has long shown itself to be insulated, to a large degree, from the ups and down in the national real estate markets. During the past 5 years, when many markets were seeing steep increases in home values, Durham stayed its slow and steady course. For the new investor, who was looking for quick cash, this didn’t make for exciting investment prospects , but buy-and hold investors appreciated the stability and cashflow opportunities in this area. Now, with many US markets plummeting and values on the decline, Durham looks very exciting to most investors. Although the number of home sales has decreased in recent month, values are still moving on their slow and steady path upward.

Why is this city so insulated from large swings? Well let’s take a closer look. Durham is:

1. A college town (home to no less than 3 colleges and universities – Duke, Durham Technical Institute, and North Carolina Central University)

2. Flanked on both sides by economically vibrant college towns (Chapel Hill and Raleigh)

3. Minutes from the ample government job opportunities in the state capital (Raleigh)

4. Home to Research Triangle Park, the world largest research park and countless biotech, healthcare and IT companies (large and small)

5. Home to 6 hospitals

6. A haven for start-ups

These items offer a very healthy supply of employment opportunities. Companies have taken note of the low cost of living and corporate tax incentives as well. These companies want to locate in a city where they can retain their talent and offer a positive quality of life on the average wage. As a diverse town with a relatively low cost of living and a wealth of activities for both families and singles, Durham is the ideal place for this. For this reason, the city benefits from a consistent influx of new corporate relocation to the area.

Cashflow opportunities on rental property are still widely available. Average rents versus purchase price support positive net cashflow in most areas of the city. This applies to certain new construction as well, which in many locales is very difficult to cashflow in year 1.

For more information on this vibrant and growing town, and the Businessweek ranking on the safest cities for the recession, visit:

http://tinyurl.com/DurhamRecessionProof

and

http://tinyurl.com/DurhamRecessionProofRanking

In the end, it looks like, in this race, the turtle does beat the hare.

--Tiffany

www.tiffanyelder.com