Raleigh Real Estate Market 2026: Great Economy, Complicated Market

Raleigh is one of the strongest job markets in the Southeast. Unemployment: 3.0% as of December 2025 — among the lowest of any major metro. Median household income: $96,066 (2023 Census). The Research Triangle's tech and life sciences economy has made Raleigh a reliable destination for employers and educated workers.

PropertyIQ scores Raleigh a 43 out of 100 as of February 28, 2026.

This tension — a strong economy with a below-average real estate score — is worth understanding.

Why the Score Is 43 Despite the Economy

Inventory is growing faster than demand: 4,345 homes for sale, up 15.18% year over year as of February 2026. New construction is a significant driver — Raleigh saw 715 new construction home sales in November 2025 alone, one of the highest new-construction rates among mid-size metros. Builders responded aggressively to the Raleigh demand story, and that supply is now competing with existing inventory.

Overvaluation Has Built Up

Raleigh is 27.4% overvalued relative to local fundamentals as of February 2026. The income needed to buy at current prices is approximately $118,269. Even with a $96,066 median income, there is a meaningful affordability gap. Strong employment attracted strong price appreciation, and now prices have run ahead of what the local income base can comfortably support.

What Is Working

Home values are rising: +2.06% year over year as of February 2026. Price cuts are moderate at 14.81%. The pending-to-active ratio is 0.6468 — nearly two-thirds of listings have buyers. Zillow forecasts 1.5% near-term appreciation as of December 2025.

The Pattern

Raleigh is in a similar position to Charlotte (scored 39): a high-growth metro where rapid population and job inflows drove home prices to levels the local income base is straining to support. Until inventory is absorbed or prices adjust further, the score reflects a market in transition — not distressed, but not yet favorable enough to score above average on current supply-demand conditions.

PropertyIQ score as of February 28, 2026. Listing and inventory data as of February 1, 2026. Rent and forecast data as of December 2025. All data for informational purposes only.