Raleigh, NC vs Denver, CO: Which Is the Better Investment?
Compare Raleigh (cap rate 5.7%) vs Denver (cap rate 5%). Rent, appreciation, vacancy, and market health analysis.
Raleigh Price
$410K
Denver Price
$580K
Raleigh Cap Rate
5.7%
Denver Cap Rate
5%
Raleigh Rent
$1,950/mo
Denver Rent
$2,400/mo
Raleigh Growth
2.4%
Denver Growth
1.5%
| Raleigh | Metric | Denver |
|---|---|---|
| $410K | Median Price | $580K |
| $1,950/mo | Median Rent | $2,400/mo |
| 5.7% | Cap Rate | 5% |
| 4.5% | Appreciation | 2.8% |
| 3.8% | Vacancy | 6.1% |
| 474,069 | Population | 715,522 |
| 2.4% | Pop. Growth | 1.5% |
| 7/10 | School Rating | 6/10 |
AI Comparison Verdict
Raleigh, NC
Good Investment
RecommendedDenver, CO
Neutral
Raleigh ($410K median, 5.7% cap rate) vs Denver ($580K median, 5% cap rate). Raleigh offers lower entry costs with 2.4% population growth, while Denver provides higher appreciation with 2.8% appreciation. Raleigh scores 63/100, outperforming Denver with stronger cash flow potential.
Summary
Raleigh ($410K median, 5.7% cap rate) vs Denver ($580K median, 5% cap rate). Raleigh offers lower entry costs with 2.4% population growth, while Denver provides higher appreciation with 2.8% appreciation. Raleigh scores 63/100, outperforming Denver with stronger cash flow potential.
Bull Case
- 1
Raleigh, NC: Strong population growth of +2.4% annually drives sustained rental demand and reduces vacancy risk, creating favorable conditions for landlords.
- 2
Denver, CO: Strong population growth of +1.5% annually drives sustained rental demand and reduces vacancy risk, creating favorable conditions for landlords.
- 3
Raleigh, NC: 4.5% annual appreciation combined with principal paydown creates compelling total returns even with moderate cash flow.
- 4
Denver, CO: 2.8% annual appreciation combined with principal paydown creates compelling total returns even with moderate cash flow.
Bear Case
- 1
Raleigh, NC: Rising interest rates increase carrying costs — a 1% rate increase on a $328K loan adds ~$273/month to mortgage payments, compressing cash flow.
- 2
Denver, CO: Rising interest rates increase carrying costs — a 1% rate increase on a $464K loan adds ~$387/month to mortgage payments, compressing cash flow.
- 3
Raleigh, NC: Increasing new construction permits could add supply, pushing vacancy above the current 3.8% and pressuring rents downward.
- 4
Denver, CO: Increasing new construction permits could add supply, pushing vacancy above the current 6.1% and pressuring rents downward.
Key Risks
- !
Interest rate risk: refinancing in a higher-rate environment could eliminate positive cash flow on leveraged properties, requiring additional capital reserves.
- !
Interest rate risk: refinancing in a higher-rate environment could eliminate positive cash flow on leveraged properties, requiring additional capital reserves.
- !
Local economic concentration risk — downturn in primary industries could rapidly increase vacancy and reduce rental rates.
- !
Above-median crime index (42) in certain neighborhoods may impact tenant quality, insurance costs, and property appreciation trajectory.
Final Verdict
Raleigh, NC edges ahead in our analysis. Raleigh scores 63/100, outperforming Denver with stronger cash flow potential. Ultimately, the best choice depends on your investment timeline, risk tolerance, and portfolio allocation.
Compare Alternatives
Analyze Your Own Investment
Run a full AI-powered comparison of Raleigh, NC vs Denver, CO with detailed Decision Scores and personalized recommendations.
Try LargeKite AI — Compare NowGet Weekly AI Investment Insights
Decision Scores, market analysis, and opportunities — delivered every Monday.
Free forever. No spam. Unsubscribe anytime.