Population growth in Winston-Salem exceeds the national average. Over the past five years, Winston-Salem’s population has increased by 3.8%, compared to 1.9% growth nationally. Winston-Salem’s affordability and population growth will likely lead to long-term demand for housing as more manufacturing and logistics-focused players move into the market.
Over the past year, net deliveries of multi-family properties in Winston-Salem have totaled 1,320 units, which is far above the market’s historical annual average and has outpaced demand. In addition, 160 units are under construction in the market. Once those units deliver, the market’s vacancy rate will likely decline modestly.
The fundamental balance between supply and demand has supported moderate rent gains over the past 12 months. Asking rents among the market’s apartment communities have grown 2.7%, compared to annual rent growth of 1.1% a year ago. Rent gains are expected to increase modestly in the medium term.
Winston-Salem’s population growth has helped drive demand for apartments. Net absorption in Winston-Salem has totaled ~1,500 units over the past year, which is about double the market’s historical annual average.
As demographic trends brought new demand for Winston-Salem’s apartments, developers raced to build more supply, pushing vacancies higher. Most recently, 1,320 units have been delivered over the past year, and the market’s vacancy rate has risen to 7.4%, still below the national 7.7%.
Over the longer term, job growth in Winston-Salem’s manufacturing and trade, transportation, and utilities sectors and the region’s robust education infrastructure should continue to support additional demand for multifamily housing. The metro’s geographic position and access to major roadways, including interstates 40 and 85, have strengthened its importance as a Southern logistics and transportation hub. Large players in the aeronautics and EV manufacturing space have continued to expand near the Piedmont Triad International Airport region, with the likes of Honda Aircraft committing to long-term operations in the region.
Wake Forest University and its medical school, as well as Winston-Salem State University, provide a steady stream of diverse talent for the metro’s workforce and are an important source for the region’s economy. Their presence has contributed to the success of the Innovation Quarter, an adaptive reuse of Winston-Salem’s former tobacco factories and warehouses that has grown into a district focused on research and development. The mixed-use development is home to more than 90 companies employing over 3,600 workers. These workers contribute to the steady demand for multifamily housing.
The Piedmont Triad region’s infrastructure, access to skilled labor, and proximity to other markets should keep economic growth consistent in the near term. These qualities, along with the state’s business-friendly environment, will likely continue attracting a diverse set of employers as well. As more employers make Winston-Salem their home, multifamily housing demand is expected to increase.