Building Costs Per Square Foot in the City of Raleigh (NC), USA

Residential Construction Market Analysis in the City of Raleigh (NC), USA

Newly Built House in Raleigh 234 Lynwood LN NC27609 – 5 Bedrooms and 8 Baths with 3 Attached Garages on Gross Floor Area 5,772 sqft – Built in 2022 – Price $3,150,000

Building costs are 3% above the national average in the City of Raleigh in North Carolina. The basis of the American dream is to be a homeowner, and one of the best cities to do it is Raleigh, North Carolina. The prices are not unreasonable, and you can get very good properties without having to go into debt for years. For that reason, we will dedicate an article to this modern state that comes with a unique boost in recent years and shows no signs of stopping growing.

From the construction outlook to information on current property values, upcoming residential construction projects, and upcoming market trends, you’ll find all the information you need here.

Raleigh (NC) Construction Outlook

Raleigh’s construction outlook is one of the most beautiful in the entire region. Its buildings are modern, recently renovated or built in the last few years, so it breaks away from the dated style found in other North Carolina cities.

It has some big buildings, not so similar to the skyscrapers of cities like New York or Chicago, but with good size and with aesthetic designs of the last years. In downtown Raleigh is where you will find more buildings since this trend is changing on the outskirts of the city.

In neighborhoods like Atlantic, there are mostly townhouses or condominiums, in Glenwood, there are also these properties as well as single-family homes and some luxury homes. For all this, Raleigh is a place where you can find any type of property that you like.

There are not many regulations regarding the type of construction or the height a building can reach, so architects and investors in the real estate market can let their imaginations run wild. This is good information in case you want to buy a lot to later build a property from scratch, or if you want to modify an existing one.

Raleigh (NC) Housing Market Analysis and Forecast

Raleigh’s real estate market is growing faster than Charlotte’s (also a North Carolina city), so you shouldn’t take your eyes off the positive changes that are happening in this city. In fact, experts in the field say that Raleigh currently represents a safer place to invest compared to the rest of North Carolina.

To give you an idea, this year there was a 12% increase in the prices of residential properties at a general level. Some properties saw increases of over 20% this year, although this depended on the area and the type of property.

Some experts assure you that between now and October 2023 the values ​​of single-family homes may increase by 24%, so if you were contemplating buying a property of this style, now is the time. This increase is estimated to occur due to the growing demand today to buy houses for families in Raleigh.

Houses take an average of 40 days to sell. This means they are listed on the market for that period before someone buys or reserves them. The properties that sell the fastest are again single-family homes since they are sold in an average of 38 days.

So that you know more about the cheapest and most expensive values ​​​​of Raleigh, we will talk a little about those prices. The most expensive properties are found in Glenwood, where the average price exceeds one million dollars. In Atlantic, you will find the cheapest properties since the average does not exceed $260,000.

Raleigh (NC) Average House Price (Median Home Price)

The median home price in Raleigh (NC) is $395,000, which is 8.8% more than it was during October 2021. Do not forget that the median home price is obtained from the value of the properties listed in the real estate market of the city, so in reality, prices can vary a lot. They can be lower or higher prices depending on the current state of the property, the type of property it is, and the area in which it is located.

In the case of Raleigh, the area does not affect much unless it is a luxury neighborhood, since the rest are very similar neighborhoods. Yes, it can vary greatly depending on the type of property it is. For example, the single-family home has a median value of $445,000 which is 8% higher than it was last year. These properties are priced that way because single-family homes are in high demand in Raleigh, so owners know they can get more money for them.

Townhouses have an average value of $340,000 and are up 13% compared to last year. The annual peak in townhouse value occurred during April when it reached $359,000. However, a super extreme spike is not expected shortly.

In the case of condo/co-op properties, their average value is $297,000 and although it is lower than that of the properties mentioned above (mainly due to their characteristics), it is the type of property that had the highest percentage increase. This year its value increased by 14% and this trend is expected to repeat itself next year.

Proposed Residential Building Projects in Raleigh (NC)

Raleigh is a city that is growing and is pushing to become a more regionally recognized city. For this reason, in most real estate projects, this search for improvement and modernity can be identified in the planned constructions.

For example, in downtown Raleigh there are some super modern building projects, to join the other recent ones that already make up the city’s skyline. These buildings exceed 20 floors and have a large number of apartments, the vast majority of which are residential. These buildings have glazed exteriors or colors such as light blue, which contrast with the monotony that exists in other more old-fashioned cities.

In Oakwood, North Hills, and North Raleigh there are projects for single-family homes manufactured. These are made with wood and some other insulating material and are intended for middle-class families to buy. They have an average value of $300,000 and have 4 bedrooms, a spacious garden, and a garage.

In Glenwood, there are some luxury home projects, although they are not like the typical mansions you would expect to see. They are similar in size to the average single-family houses, with 4 rooms or a couple more, but they stand out for their modern designs and different functionalities that provide more comfort. Also, Glenwood is an expensive neighborhood so it makes sense for a luxury project to happen there.

Under Construction and Nearing Completion. Newly Built House in Raleigh 1121 Kingwood Drive NC27609 – 5 Bedrooms and 5 Baths with 2 Attached Garages on Gross Floor Area 4,919 sqft – Built in 2022 – Price $1,825,000

Building Costs Per Square Foot for Single Family Homes in the City of Raleigh (NC), USA

Building costs are 3% above the national average in the City of Raleigh in North Carolina.

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Raleigh City ranges from $355.24 per sqft to $544.56 per sqft, with the average being $419.23 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Raleigh City ranges from $215.90 per sqft to $330.94 per sqft, with the average being $254.78 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Raleigh City ranges from $139.57 per sqft to $211.98 per sqft, with the average being $163.40 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Raleigh City ranges from $101.86 per sqft to $156.20 per sqft, with the average being $120.21 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Raleigh City ranges from $82.68 per sqft to $126.62 per sqft, with the average being $97.49 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Raleigh City ranges from $65.21 per sqft to $95.95 per sqft, with the average being $76.92 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.