For a local landlord in Raleigh, the rental market’s rapid shift toward private equity (PE) investment is becoming undeniable. Today, roughly 41,000 units in the Raleigh-Cary metro are owned by PE firms, the highest share of any U.S. market.
This change has unfolded alongside one of the country’s most aggressive multifamily construction cycles, with large new communities rising from downtown Raleigh and Durham to Cary and Morrisville. North Carolina, as a whole, now has approximately 132,600 PE-owned units, nearly one in five statewide.
As a local operator deeply familiar with these conditions, our team at RTP Properties NC Inc. has been tracking data, legal developments, and on-the-ground effects affecting landlords in our region. Our goal with this report is to break down what’s changing, what it means for independent owners, and how to stay competitive in a market increasingly influenced by institutional players.
Continue reading to see how private equity is reshaping Raleigh’s rental landscape and what local landlords should be doing now to adapt.
Key Takeaways
- About 41,000 apartment units in the Raleigh–Cary metro are now PE-owned, giving institutional investors significant influence over pricing and operations in the region.
- Institutional owners raise the competitive bar through data-driven pricing and standardized systems, shaping renter expectations around speed, transparency, and digital service.
- Regulatory scrutiny is increasing, with RealPage litigation and “junk fee” actions signaling compliance risks tied to opaque pricing and algorithmic rent-setting.
- Independent landlords can still win on service, using clear communication, transparent fees, and reliable maintenance to stand out in a market defined by scale.
Private Equity Acquisitions: Scale and Scope
Private equity now plays a major role in the Raleigh-Cary rental market. Roughly 34.8 percent of local apartment units are under PE ownership, a higher share than metros such as Atlanta, Austin, Charlotte, and Denver. The metro footprint in these figures includes areas like Apex, Wendell, and Wake Forest.
Nationally, PE firms have expanded rapidly, with 62 percent of their apartment holdings acquired since 2018, and 42 percent since 2021, especially in Sun Belt markets. In Raleigh-Cary, the properties most commonly involved are larger multifamily communities that align with big-capital acquisition strategies.
On the national stage, leading PE apartment owners include Blackstone, Greystar, Starwood, Related, and Cortland.
Impact on Local Landlords
For independent landlords, the biggest immediate impact of PE ownership is competition. When roughly one-third of local units are operated by institutional owners, their standardized systems and data-based pricing influence renter expectations and market norms.
Technology is part of this shift. Even small landlords are adopting tools like Rentvine, Buildium, and Hemlane to streamline leasing, payments, communication, and market research.
Tenant expectations are evolving as well. In markets with a large institutional hold, renters become accustomed to online portals, faster response times, and transparent policies, but they are also increasingly aware of add-on fees.
Meanwhile, regulatory scrutiny is growing. RealPage-related litigation, federal attention on junk fees, and North Carolina’s settlement with Cortland over pricing software all signal that opaque pricing and algorithmic rent-setting come with compliance risks.
How Private Equity Changes the Rental Landscape
PE firms often follow a value-driven operating model: acquire, manage aggressively for revenue and fee growth, and exit after repositioning the asset. In case studies from other Sun Belt metros, PE-owned properties saw rent increases that outpaced local averages following acquisition.
Standardized management can streamline processes, but tenant accounts across multiple markets have also described maintenance delays, hidden fees, and stricter enforcement policies. Regulators have challenged some of these practices, such as alleged junk fees and RealPage-linked price coordination, though the companies involved have denied wrongdoing.
In the Triangle specifically, North Carolina’s settlement with Cortland has already shaped how certain pricing tools can be used, showing that legal outcomes can directly influence local management approaches.
Opportunities for Independent Landlords
Although this may seem like a losing game for independent owners, they still have meaningful advantages. PE portfolios have drawn criticism in several markets for surprise fees and uneven responsiveness, which opens a lane for smaller landlords to differentiate themselves through reliable service, transparency, and community presence.
Local planning conversations in the Triangle also continue to explore more diverse housing types (like duplexes and townhomes), creating spaces where small and mid-sized investors may fit naturally. Raleigh leaders have also acknowledged a 37,000-unit housing shortage, alongside projects accounting for roughly 3,000 new units. These statistics show that demand isn’t fading.
By pairing upfront pricing, predictable service, and tenant-focused relationships, small landlords can compete effectively even as institutional ownership grows.
Adapting for 2025 and Beyond
The most sustainable path forward is a hybrid mindset: match the professionalism of institutional systems while keeping the local, human touch. The record shows more landlords of all sizes are turning to proptech for efficiency, and small operators can do the same. At the same time, it’s wise to do the following:
- Avoid opaque fees in light of ongoing FTC actions.
- Document independent rent decisions if using pricing tools.
- Make fee schedules and service expectations highly visible.
- Track local competition, especially given the differences between Raleigh and nearby markets like Durham.
Modern operations paired with transparent, tenant-friendly management can position local landlords for strength in an increasingly institutional market.
FAQs
1. How is private equity affecting the Raleigh rental market?
Private equity firms now own tens of thousands of apartment units in the Raleigh–Cary metro, influencing rent pricing, property management practices, and overall market competition.
2. Do private equity landlords charge higher rent in Raleigh?
Rent impacts vary, but PE owners often use data-driven pricing and revenue tools that can contribute to faster rent increases or added fees, especially in high-demand submarkets.
3. Are rent-setting algorithms like RealPage legal in North Carolina?
Rent-setting software is under scrutiny, with ongoing lawsuits and a state settlement involving Cortland. Landlords using similar tools should stay compliant and document independent pricing decisions.
4. How can small landlords compete with private equity in Raleigh?
Independent landlords can stay competitive by focusing on transparent fees, responsive maintenance, digital convenience, and stronger tenant relationships.
Leveraging Service to Compete with Scale
Raleigh’s rental landscape is now shaped by an uncommon mix of heavy private-equity ownership, steady construction, and evolving regulatory scrutiny. While large firms can influence pricing and processes, independent landlords still hold a significant advantage through responsiveness, transparency, and consistent service.
By operating professionally, avoiding opaque fees, and prioritizing reliable maintenance and communication, local owners can earn renewals, referrals, and long-term stability even in a market defined by institutional scale.
RTP Properties NC Inc. helps Raleigh-area landlords navigate these changes with informed guidance and hands-on support. Ready to strengthen your rental operations and stay competitive? Contact us today to get started!