I Raleigh again CharlotteIn North Carolina, the metros have grown the most over the past five years, with population growth of 11.53% and 8.81%, respectively (the US average was 2.94%).
Raleigh also had a 64.2% increase in its median price, while Charlotte saw a 76.9% increase (the US average was 46.9%).
One could consider North Carolina an epidemic situation, as well the likes of Texas, Florida, and Arizona. But I think over time, it has more potential for growth than is realized.
Let’s take a look at everything North Carolina has to offer.
The Business Tax Climate
A 2003 study published in Journal of National Taxation found that “corporate income taxes have a significant negative effect on employment, while sales and personal income taxes do not.”
If this is true, the business friendly tax environment should continue supporting job growth over time. And if the local economy grows, so is the local market.
Let’s take a look at the corporate tax situation in every state. Here’s a nice picture made by the Tax Foundation:
You will notice I am A few states have no corporate income tax rate. Unfortunately, although this includes investment, it does not paint the whole picture of the corporate tax landscape.
“No Business Tax Fee” Is Not the Whole Picture
These states do not charge corporate income tax:
- Nevada
- Texas
- Washington
- In Ohio
- Wyoming
- South Dakota
- North Carolina (by 2030)
However, Nevada, Texas, Ohio, and Washington also enforce what is known as a “gross receipts tax.” This tax on the company’s gross sales, excluding deductions for its business expenses, such as cost of goods sold.
This can benefit companies with high profit limit while penalizing companies for More narrow profit margins. It can also hurt startups, which have low profitability thresholds at the beginning. Or these companies can pass these taxes on to the consumer, as shown in this image:
On the other hand, in Nevada and Ohio, these prices are lower when you start. Ohio also recently implemented new thresholds that will be exempting many small businesses from this tax. This means things are looking up for Ohio.
North Carolina already has a low corporate tax ratesitting by 2.5%. And by 2030, the federal corporate tax rate will drop to 0%. This it would put North Carolina in the same category as South Dakota and Wyoming, which are states with no corporate income tax or gross receipts tax.
Interestingly, Wyoming’s population only grew 0.13% per year from 2008-2023 from total migration. The US average was 0.27% per year, and more the timeSouth Dakota saw an increase of 0.51%, and North Carolina saw an increase of 0.84%. (If you’re curious, Florida had the highest population growth rate, at 1.29% per year from 2008-2023).
If the company’s tax position was perfect that it was what is needed in order to increase the number of employers and, therefore, the number of workers in the area, Wyoming and South Dakota should have seen greater growth than North Carolina (and these states are not even the fastest growing five states). We naturally know there is more to the story.
Employers need access to an educated workforce so that increase. In fact, in each university’s new patent, researchers estimate 15 other jobs are created outside the university in the local economy.
So next, we’ll look specifically at the number of colleges that offer the largest share of STEM degrees in each state.
Colleges Offer Large Share of STEM Degrees
After downloading college scorecard data from US Department of EducationI filtered out all universities that do not offer four-year degrees, small universities, and universities that are not in the inner city or nearby area. I wanted to track only the major institutions is available inside or near major municipal centers.
Next, I calculated the percentage of STEM degrees awarded to recent graduates. Then, after sorting from the highest percentage of STEM degrees to the lowest, I kept only the top half of institutions. For anyone curious, the average percentage of STEM degrees given to this set of major institutions about 22%.
Then, I easily summarized the number of four-year universities remaining in each state that was necessary more than 22% of its students graduate benefit STEM related degrees. Here are the results (states that do not have colleges eligible for these criteria are excluded, such as Wyoming):
Notice how California, New York, and Texas are at the top, three of the four most populated (the other is Florida).
As a side note, I would also like to point out that Ohio has one of these universities rather than North Carolina. Thiscombined with Ohio’s affordability and its business-friendly tax environment, makes it an excellent long-term investment destination.
Last strike against Ohio for me personally its high property tax rate. But on the Kentucky side Cincinnati (literally across the river) looks very attractive, as you can benefit from the growth of the city without the high cost of property and property taxes.
North Carolina Colleges: The Research Triangle
By far, North Carolina has one of the most business-friendly tax havensand with 2030, it will be comparable to South Dakota and Wyoming, with no corporate income tax or receipts tax. However, unlike South Dakota and Wyoming, North Carolina has many prestigious universities that produce many STEM-focused students.
Three of these universities everything in the combined equation (actually, one major metro). North Carolina State University, Duke University, and the University of North Carolina at Chapel Hill do what is known as The Research Triangleincluding i the greatest of all a research park in America and home to many technology companies.
Check out Raleigh’s employment numbers over the past decade:
Investor Friendly Agent in Raleigh’s Real Estate Market
It always helps to get information from a professional hiker. We were working with him Katie Rotherreal estate agent working with investors, in the Research Triangle (Raleigh-Durham-Chapel Hill) market segment.
Here are a few highlights Katie covered in her new report:
What areas are seeing the most growth in the Triangle?
“In the next five to ten years, places like Pittsboro, Sanford, Hillsborough, Lillington, Angier, and Benson are being shown. strong the price is going up and will continue look at the growth.
Within 15 minutes of downtown Raleigh, cities like Cary, Apex, Wake Forest, North Raleigh, and Knightdale are also thriving, with more amenities and housing developments. Even outlying areas, such as Wendell, Zebulon, Clayton, and Benson, are becoming more attractive to buyers and investors, as they offer affordable housing and more space.
To grow for a long time and to appreciatei am especially focused on areas like Sanford, Fuquay-Varina, Holly Springs, and Pittsboro, as they show great potential for the future. The Triangle has a little something for everyone, from the vibrant city life of Raleigh and Durham to the suburban charm of places like Cary and Apex, as well as quiet, growing communities further afield.
How do buyers and sellers navigate this market?
“In today’s fast-paced and competitive market, buyers and sellers rely heavily on their agents to guide them through the complexities of buying and selling a home. Whether price navigation, negotiations, or market-specific processes, having an experienced agent it makes all the difference.
For consumers:
- Understanding Costs: Many buyers have questions about due diligence fees and earnest money deposits, especially if they are new to the property or home buying process. Agents are important in explaining these upfront costs and ensuring that buyers are comfortable with their investment.
- Home Inspection: Buyers often look to their agents for advice about inspections—what to expect, what to prioritize, and how to handle repairs or emergencies that arise during the process.
- Market Strategy: As competition is high, agents help buyers make strong offers, prioritize needs versus wants, and identify homes that are the best value for their budget.
For sellers:
- Pricing and Marketing: Sellers rely on their agents to recommend competitive listing prices and market their properties effectively to stand out in a crowded market.
- Preparing for sale: Agents help sellers decide on pre-sale improvements and staging to attract buyers and increase offers.
- Special offers to negotiate: From handling multiple offers to answering compensation questions, agents ensure sellers to be informed and control throughout the process.
For both buyers and sellers:?
- Agents are the go-to resource for navigating tricky questions about compensation, contracts, and market trends. Whether you are a first-time buyer or a seasoned seller, a trusted agent can make the process smoother, more informative, and less stressful.”
Final thoughts
Mine personal The interpretation of the data is that the region’s high number of well-educated students, as well as one of the best business locations in the nation, will continue to drive growth in the Raleigh metro area for years to come.
Would you like to see a data-driven breakdown of the best places in the Raleigh-Durham area to invest? Let me know in the comments. If enough people are interested, it will justify spending time collecting and analyzing data.
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A Note About BiggerPockets: These are the views expressed by the author and do not necessarily represent the views of BiggerPockets.
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