Raleigh, North Carolina, along with other Southern cities like Austin and Atlanta, has recently been highlighted as the top U.S. cities for young professionals seeking career opportunities and affordable living, according to a ranking by The Wall Street Journal.
The top metro, Raleigh, North Carolina, is the top destination for new graduates due to its strong job market and vibrant cultural scene. It is home to a hotbed of research institutions like Duke University. Science and tech companies like Gilead Sciences, Cisco Systems, and MetLife have opened new offices in the area, calling for new talent, according to the article.
This is among the primary reasons BuildLabs is launching a manufacturing facility in Nash County, North Carolina—just 45 minutes from Raleigh and Durham. When it came to location, I had my eye for some time on the Research Triangle, the region home to three Tier-1 research universities, as well as other colleges, HBCUs, and institutes. Given our high-tech approach to design and construction, this makes the area a hotbed for quality talent that could support the next chapter of BuildLabs. Our company is here to bridge the quality craftsmanship of the past with the innovative and sustainable building practices of the future. I couldn’t think of a better location with a better local workforce.
As the cofounder of a family-owned and operated private company, there was another, more personal reason for the choice of a North Carolina location. As I told the Rocky Mount Telegram: Chugh’s son is attending the University of North Carolina at Chapel Hill. Chugh said he accompanied his son while he was looking at colleges and liked what the area had to offer. “That was the trigger point for me saying, ‘We’re going to build here in North Carolina,’” he said.
But the WSJ’s positive outlook about Raleigh is somewhat tempered by more localized headlines about rising real estate costs in the area.
Back in New York, I’m a resident of the Hamptons where I’ve headquartered my company and raised my family for the past decade-plus. After 10 amazing years in business, I’ve developed a new company mission: to use our unique building methodologies to benefit affordable housing initiatives in the East End of Long Island. I am beyond humbled to have built top-notch custom residences for a high-end clientele, as this has allowed me to sustainably grow this company without any external funding. But now it’s time to ensure that the BuildLabs solution pays it forward. I’ve met with East Hampton town officials about scalable building methods as well as turning to innovative solutions like ADUs (accessory dwelling units), which my company specializes in.
This newly ignited mission also drove our decision to create a new presence beyond New York. We want to democratize the home-building and custom home ownership experience for all Americans, not just Hamptonites, and establishing BuildLabs in the Mid-Atlantic region is just one step to our grand vision. No matter how vibrant an emerging city is, its status as a promising hub for young professionals is unsustainable long-term if the real estate market is out of control, and not adding up the way it has for previous generations.
And as local news sources report, housing affordability is becoming an issue in Raleigh and other North Carolina towns and cities. A recent report by the urban planning firm Demographia indicates that Raleigh's housing market is becoming increasingly unaffordable, with a median multiple of 5.1. This figure reflects the ratio of median house prices to median household incomes, suggesting a growing disparity between earnings and housing costs.
Further, the North Carolina Housing Coalition reports a 17% increase in fair market rents for moderately priced two-bedroom units over the past five years in both Mecklenburg and Wake counties, where Raleigh is located. Even smaller regions, such as Nash County, are experiencing substantial increases in real estate values, pointing to a broader trend across the state.
While Raleigh offers promising career prospects for new graduates, the escalating cost of housing presents a significant challenge, mirroring trends seen in other fast-growing Southern cities, like Austin and Nashville. I admit I’m a builder and not a financial advisor, but it’s widely known that housing costs should account for about 30% of an individual’s gross income, which includes rent or mortgage payments; as well as homeowner association fees and utilities.
If this percentage of the pie continues to balloon, the future of homeownership and affordable living for the next generation is doomed. And as a father of two teenage sons, I simply can’t sit back and shrug. I’m using my platform as an entrepreneur to ensure that amazing American cities like Raleigh remain a vibrant and high-performing hubs for young professionals via affordable housing solutions.
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