The TAG team sat down with BETTER’s COO, Ian Lipman, to discuss what’s really happening with housing supply and population growth, and how these trends are reshaping development in metro areas like Durham.
Let’s get into it
Why Nc's Metro-Area Housing Supply Still Feels Tight
In today’s market, buyers increasingly desire quality, updated, move-in-ready homes.
To meet that demand, the Triangle has added thousands of condos, townhomes, and apartments in the last decade.
But there’s still a significant gap in the market: single-family inventory.
Large portions of the single-family home market in the Raleigh-Durham area are nearing 100 years old.
Ian Lipman told TAG, ‘a lot of these houses (in downtown Durham) were built in the 1920s…the quality of the housing supply has been deteriorating over time.’
For many buyers, that means:
- Older systems and costly maintenance
- Outdated layouts that don’t fit modern lifestyles
- Renovation costs on top of already high purchase prices
Lesson from Durham: Housing supply problems in NC aren’t purely shortages. They are about a mismatch between what exists and what people actually want.
The Land is There, but is it Buildable?
Another part of the story is land availability in established cities, and how build-ready that land actually is.
On paper, it can look like there’s plenty of ‘vacant land’ in our metro areas.
In reality, many urban lots are not ready for a builder to pull permits and start construction.
‘Not build-ready’ often means things like:
- No utility access (water, sewer, or both)
- No real street access or frontage
- Major off-site work before a home can be built (extending roads, utilities, and proper prep)
All of that accessibility and infrastructure has to be improved before building can begin, while sellers often price land based on what a future new home might sell for, even when the lot still needs tens of thousands of dollars in prep work.
That combination can lead to:
- Inflated land prices that don't make sense for builders
- Costly set prep that eats into already thin margins
- Slower delivery of new homes, even when demand is strong
On top of that, Durham’s land is foundationally expensive; not because we’re out of it, but because of how the city was developed.
As Ian shared with us:
‘Durham was built after the advent of the car, so the city never built up; it built out. Properties have huge backyards, which means we run out of usable space faster than somewhere like New York City or Boston’.
Lesson from Durham: In metropolises built out instead of up, like Durham, large lots create the illusion of available land, but when that land isn’t build-ready or affordable to develop, housing supply tightens fast.
By-Right Development & Creative Infill in Durham
Before developers look to the outskirts of our cities for usable land, there’s still opportunity right inside our urban cores, even in desirable locations like the walking distance of downtown areas of Raleigh, Durham, and Charlotte.
BETTER has been leading the charge on ‘by-right’ projects in Durham.
Unlike traditional development, which relies on large tracts of land and multi-year rezoning processes, by-right development uses land that already works within the existing city framework.
Ian tells TAG:
‘Traditional development means big rural tracts, rezoning petitions, public hearings, and years of infrastructure work before a single home is built. By-right development doesn’t work like that. We’re working inside city limits, on land that already has utilities and is build-ready, turning backyards and side yards into buildable lots’.
Here’s a quick look at why Durham’s small-lot, by-right approach is reshaping North Carolina’s urban housing supply.
Category | Traditional Development | By-Right / Creative Infill |
Location | Rural or edge-of-city 10–20 acre tracts | Inside established cities (Durham, Raleigh) |
Zoning Needs | Requires rezoning, public hearings, and town hall meetings | Uses existing zoning —> no rezoning required |
Timeline | 1–2 years of planning + infrastructure before building | Weeks to months (lots already have utilities + street access) |
Infrastructure Needs | Water/sewer extensions, new roads, stormwater systems | Existing utilities and road access are already in place |
Scale | 50–200+ lots | 1–10 lots |
Impact on Supply | Adds volume but pushes growth outward | Adds units inside the city where demand is highest |
Typical Outcome | New suburban subdivisions | Backyard splits, ADUs, duplexes, small-lot homes |
Who Benefits? | Large national builders | Local homeowners, small developers, downtown-focused buyers |
Ian further recounts:
‘For land that originally didn’t have any additional value other than being someone’s backyard, the City of Durham sees the opportunity. They’re allowing homeowners to monetize that land as a solution for the lack of housing density and inventory in city limits.’
Lesson from Durham: Solving NC’s supply problem requires creative use of land that’s already there.
From Supply to Strategy: What This Means for Investors
According to a recent 2025 Talent Everywhere report, Millennials and Gen Z are seeking homes in walkable neighborhoods with transit access, modern amenities, and flexible, tech-friendly design.
With Experian’s recent projections that 50% of millennials and 48% of Gen Z renters will become homeowners by 2029, it only makes sense to cater to these buyers.
That’s why infill development inside cities like Durham, Raleigh, and even Cary is becoming more relevant; it puts homes where younger buyers want to be.
Common Misconceptions About Development
BETTER’s vantage point on this subject is unique, largely because of its creative, accessible approach for new and seasoned investors.
Ian broke down two common misconceptions about urban development for investors, both catering to either side of a pendulum swing:
Misconception #1
Development is only for big players
Reality: It’s a learnable process with the right real estate partners
Misconception #2
‘How hard can it be?’
Reality: Many sites look good on paper, like we mentioned earlier, but fail in due diligence.
The middle ground between these two misconceptions is the sweet spot.
Ian’s advice? ‘Don’t be scared of development, but don’t run full-force into it either’.
And with real estate partners like BETTER, you can be sure that you’ll have advice and direction along the way.
Lesson from Durham: Real estate investing is a team game! Smart development requires humility, planning, and the right partners.
TAG’s Role: NC Valuation Insights for a Changing Landscape
At Triangle Appraisal Group, we help investors, builders, lenders, and homeowners make clear decisions in a real estate market that is constantly shifting with infill growth, zoning changes, and changing buyer preferences.
Here’s how we support you:
Residential Expertise across 40+ Carolina Counties: Appraising homes across NC and SC since 2008
Proven experience through major market shifts: From the 2008 crisis to the COVID boom to today’s recalibration, we’ve seen how value moves in every cycle.
As-is and ARV appraisals: For builders and investors who need ROI clarity before starting a project
Land appraisals: Essential in a market where many ‘buildable’ lots still need costly prep work.
Quick turnaround times: Reports are delivered 3-5 business days after inspection
Over 400 partnerships across the industry: Trusted by many local and national lenders, AMCs, and private lenders
Active involvement with NC investor community:
Strategic partnerships with NCREIA and TREIA keep us close to our clients’ needs.
TAG Tip: If you’re planning a build or renovation and want an appraiser’s perspective on ROI or renovation choices, reach out any time. We welcome those calls and want to be a resource for you, even if you’re not ready to order an appraisal yet.
Durham shows how a city can evolve, meet modern buyer needs, and still keep its spirit intact.
With the right partners, smart zoning, and a little creativity, communities can grow without growing apart. For valuation guidance that keeps pace with that change- TAG us in!
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Thanks for reading! We love sharing insights from the TAG team, and we’re always looking to connect with others who are passionate about real estate, marketing, and community.
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