Apple announced plans to construct a campus and technology hub in the Research Triangle, investing over $1 billion and adding at least 3,000 new jobs to the region. Wake County was chosen as the location for Apple's latest research and development campus. An investment of this magnitude has the potential to transform the Triangle by creating high potential jobs and providing long-term economic gains. Apple will also create a $100 million fund to help schools and community programs in the Raleigh-Durham area and across the state.

In March, Google announced that Durham would be the home of a new cloud computing engineering center. The hub is intended to be one of Google's top engineering hubs, and it might bring over 1,000 jobs to downtown Durham over the next few years. Apple and Google chose the Triangle area due to the high concentration of top-tier academic institutions, diverse economies, relative housing affordability, and high quality of life.

The entry of Apple and Google in the Triangle will have several benefits for the community and the real estate sector:

Housing

Without question, developments like Google's new engineering hub in Durham and the stated high wage targets are a massive win for the Triangle and speak volumes about the competence that already exists. The Triangle will undoubtedly see a price hike in the market, and property values will continue to grow.

When Amazon announced its HQ2 development in the D.C area, the initial reaction of housing markets in the vicinity was speculative. This was despite the fact that Amazon had indicated that its move into the region would take ten years. According to recent research by Realtor.com, the region's initial price spike calmed after two years, and the Raleigh and Durham real estate markets may soon have a similar response.

Real estate markets across the Triangle continue to heat up with little inventory and steady demand. Research by the National Association of Realtors on the industry average for granted single-family permits over the last 20 years discovered that 1,440 approvals in Durham and 4,640 approvals in Raleigh and Cary would be required to reach the historical average, suggesting a balanced housing market. With the entry of Google and Apple, even more developments will have to be permitted.

While short-term increases in housing costs are expected, given previous precedents such as Amazon's HQ2 in D.C. and patterns that surfaced during the global coronavirus pandemic, housing affordability in the long haul is likely to be determined by the actions of urban leaders. Urban leaders will have to leverage the positives of economic growth against population growth with a strategic mindset.

Job Opportunities and Commerce

When these big tech companies enter the Triangle market, it will further reinforce the existing clustering. This will be critical as the clustering will generate momentum leading to more businesses arriving, startups arising, developing, and attracting more talent to the Triangle. The more this happens, a virtuous cycle will be created, and the Triangle's commerce sector will only get better.

According to data analyzed by Nadia Evangelou, a senior economist at the National Association of Realtors, an estimated 3,000–5,000 total direct and indirect jobs could be generated in each of the first three years as Apple levels up their campus to full employment.

When computer science and engineering students in the Greater Triangle area start looking for jobs, they are most likely to first consider tech employment options at Google or Apple. There will be more outstanding options for student employment and professional engagement now that the enterprises are so near to the higher learning institutions.

Community and Infrastructure Development

The financial investments derived from Google and Apple's activities in the area will translate into property tax revenues which might be used to support welfare services, infrastructure development, and education. All of these things will need to expand in tandem with the expected population expansion. And with community development, property values around the Triangle will continue to soar, resulting in a booming real estate sector.

According to the North Carolina Department of Commerce, Apple's jobs are expected to pay an average of $187,001 a year.  In comparison, Wake County's average yearly wage is just under $64,000, implying that Apple alone will bring in an extra $550 million in payroll dollars every year. Apple is also estimated to bring in more than $1.5 billion for the state annually. Businesses around the Triangle will benefit from the domino effect induced, leading to a beneficial impact on the state.

Google's expansion into communities across the country is part of the company's aim to invest heavily in workplaces and data centers to foster long-term economic recovery. The entire state stands to gain from billions of dollars invested in North Carolina and the Triangle due to the commitments made by Apple and Google.

Contact Chatham Homes Realty

According to CBRE Group, Inc., the Raleigh-Durham area is already experiencing tremendous expansion due to migration from larger cities. In 2020, 23% of new Raleigh residents will have relocated from New York City, and 32% of new Durham residents will be from New York. As these digital companies attract new talent from big urban regions to the Triangle market, those numbers will continue to rise.

As the supply chain challenges caused by COVID-19 continue to resolve, housing development will begin to pick up. Taking advantage of the market might just be the moment to consider buying or selling a house. You may be able to sell your existing home and build a new one or upgrade it, or you may choose to downsize. The flood of new purchasers may result in a significant increase in the value of your home.

Whatever option you choose, the market is showing no signs of faltering. It is an ideal moment to buy or sell real estate. Here at Chatham Homes, we are ready to facilitate your entire buying or selling process through the help of our dedicated, friendly, and professional team spread across Chatham and Wake counties. Reach out to us today.

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