Multifamily Market Overview Q1 2025 | Durham, NC

Market Overview

Durham’s multifamily market posted solid momentum in Q1 2025, with net absorption reaching 3,066 units—up from 2,652 in the previous quarter. This occurred despite a modest rise in vacancy to 12.25%, largely driven by a surge of new deliveries. Asking rents edged up to $1,547 per unit, while cap rates rose to 5.53% as investor caution grew. With over 8,400 units under construction and more capital continuing to flow into the market, Durham remains an attractive destination for developers and institutional investors. Migration patterns, job creation, and sales activity—including several marquee transactions—signal long-term confidence in the region’s housing fundamentals.

About Lee & Associates

Lee & Associates offers full-spectrum real estate advisory services with a strong emphasis on regional expertise and strategic insights. Its Durham team delivers straightforward, data-rich reporting on key trends in absorption, pricing, and development. Known for capturing both high-level market dynamics and submarket detail, Lee's reports are trusted by owners, brokers, and developers for real-time visibility into evolving conditions. The firm’s local specialists combine proprietary research with national benchmarks, helping clients navigate investment opportunities and make timely decisions.