North Carolina's Research Triangle, where some of the Country's most prominent universities are located, is One of the fastest growing economies in the US, Outpacing Seattle, Dallas and Nashville in 2023. 60 years ago, we were the second poorest state in the Country. We were dependent on tobacco. We manufactured billions of cigarettes a year. We manufactured furniture. Now look at what's going on here. In the past decade, tech giants like IBM, Apple and Google have invested billions in the region. A growing biotech scene is rivaling even that of Boston, and companies aren't the only ones taking Notice. New York's like zero sum game winners and losers. Chapel Hill, for me was like completely the opposite. The fact that people genuinely wanted to see other People happy like that was so cool. That was like, all right, that's a place I want to Live. We have considered at times, you know, should we pick Up and move to this or that closer to somebody in the Family or whatever? And the answer has been usually a Pretty quick no. Cnbc visited Chapel Hill, Raleigh and Durham to find Out why some Americans and companies are trading big Cities like San Francisco, Boston and New York for This North Carolina pocket. So why are they …. That looked like she was doing that on purpose? That's the hot tub competition. No. It's diving. This is Randall Borror and his wife, Starla, and four Kids.
The harder we watch, the faster you go. Is that how it works? You still got to sit at the table. No, Ben doesn't want any. Right. Randall was lured to Durham in the 90s by family And a job at IBM. Today. He oversees hiring and finances at the UNC Chapel Hill Hospital's cardiology department. Unc is growing and we have multiple locations around The state. When I first started working here, we Didn't have nearly that many. Besides UNC, Chapel Hill, Duke University and North Carolina State University also call the Triangle home. There's actually eight colleges and universities there In total, and they all surround Research Triangle Park, or RTP, the largest research park of its kind in North America. It was created in 1959 by a cooperative Effort between governments, businesses and Universities as a way to lure companies to the talent Pouring out from these schools. This helped diversify the state's economy, which Ranked nearly last at the time. Cnbc ranked the state fourth when considering economic And job growth in 2024. I don't think it can be underestimated. The influence of Research Triangle Park had on the Growth of this region, and we still have companies Wanting to move in here into Research Triangle Park or In this area, at least to me, that's a big part of the Story. 15 years ago, ten years ago, you go to the university Here and you you go to Boston, or you go to New York Or San Francisco after college, if you want to work in These high tech fields.
Now, those jobs, those companies are coming here. Because of RTP's tech hub status, the area has become The nation's 10th fastest growing region since 2020. I said that I would have absolutely no problem staying In the Raleigh area for really, probably the rest of My life. Yeah. Wow. The Borror's eldest son, Luke, attends NC State in Raleigh about a 30 minute drive away from Durham. The main reason I decided to go to NC state was the Research opportunities on campus. I went to school at Research Triangle High School Right in the heart of Research Triangle. So I saw all the biochemistry and chemistry related Areas around and I didn't want I didn't feel a need to Leave the Raleigh Durham area. If Luke does stay after college, he'll likely benefit From a number of factors. For one, these Stem jobs pay well, and the triangle's Median household income is about $87,000, or around 20% higher than the national average. And the region boasts a lower unemployment rate than The rest of the country. In June 2024, Raleigh was named the most promising job Market for recent graduates. I've experienced it firsthand in this job just we're Always hiring faculty. We've got job posts open at least one or 2 or 3 Consistently. Housing has really blown up everywhere Lately, but compared to big cities and places like California, it's not bad at all. This wasn't a sidewalk here. This was just. This was all a thin dirt path with the Trees all grown out here. It's not been a boom or bust kind of a field.
The exception is that, in 2008-9 period where they, The builders, basically stopped building for a few Years and now the build, the the building boom is Back. While the region is still small in comparison to some Of the most urban in the country, accessibility has Not been an issue. Its main airport was named the Fastest growing top 50 airport in the country in 2023. For families that have relocated here whose parents Still may be in the northeast or in the Midwest, they Can get here. They can get, you know, go and see their Family on the weekend. How's it going? Hey, Mike. Hi, CC. Hello. We'll get in around, like, 545, 6:00 for the day. Ready to rock. Even though I'm getting in even earlier And staying sometimes even later than my investment Banking life. The experience, the atmosphere quite Different. Alex Brandwein owns a bagel shop in Chapel Hill, North Carolina less than a mile from campus. He worked in finance in New York City for seven years Before moving to Chapel Hill to pursue his MBA in 2018. The timing was a perfect storm. We signed the lease on February 14th, 2020. I graduated, uh, the world went upside down a few Weeks later. I've never had an idea of opening a bagel Shop that was never even the end goal. Official taste test. I'm Loving UNC. I'm loving Chapel Hill. And my one question is, where's the bagel shop? Good morning guys! What's going on? Opening a business in the middle of the pandemic was
Risky, but the triangle had a major advantage over Bigger cities. We've had delays with construction, we've had delays With permits. And this community goes above and beyond To actually support you. Even other competitors, they're giving you little tips And tricks about how things go here. And I'd never seen anything like that. Chapel Hill is considered a suburb of Durham, which is Ranked one of the top cities to start a business in. In July 2024, CNBC ranked North Carolina as the second Best state for business based on its economy, diverse Workforce, and pro-business environment. It was ranked first in 2023 and 2022. There is an opportunity to come here and set yourself Up and find incredible success. There's businesses that have been here for 40 years And established themselves. While at school. Alex joined UNC Chapel Hill's startup accelerator Innovate Carolina to help get his bagel shop off the Ground. Hey, Alex. How are you? They were a big, big part of it. Like, introduced me to mentors. Introduced us to, like, how to, like, actually become An LLC and, like, how to create that. We bring bagels once a month. Beyond a helpful community, North Carolina's corporate Income tax, at 2.5%, is the lowest in the nation and Is set to be reduced to zero by 2030. The state also has a flat income tax. That means new businesses can reinvest more of their Money. Brandwein's has already expanded in size and is
Adding a catering component to the business. As the science and tech scene develops, it creates Opportunities for other businesses to thrive. When the state goes out and recruit businesses and the Impact doesn't stop there, you can see it when you Drive through the streets, etc. There are all kinds of new businesses. The downtown's expanding their new residential Developments. Et cetera. Tech's impact on the region can't be understated. Many companies are making big investments like meta, Novo Nordisk, Amazon and Apple, although the phone and Computer giant, which committed $1 billion in 2021, Has slowed its progress by at least four years. Unlike big cities like Boston and San Francisco, There's an expansive amount of land, which is key for Large manufacturing. And overall, North Carolina's job market is forecast To grow faster than the majority of other states. Raleigh saw some of the greatest increases in Employment among metro areas between November 2022 Through 2023. Young professionals are moving here. They're moving here to to raise families, but they're Moving here because of the quality of jobs that are Available. Companies are figuring out that they need To be here for the talent, and the talent is Following. But while there is a healthy amount of job growth, Especially in the construction sector, employment has Slowed since 2022, according to state economists. While companies are putting down roots and investing, VC funding is still far from that of California or New York. Interestingly, Raleigh had an explosive second
Quarter in 2023 as several major deals were closed. The full year numbers, however, were much lower, and Though an area like San Francisco is more expensive, The pay is also higher, sometimes 40 to 50% higher for Comparable jobs. Of course, we are going to be lower on our wages Because of that cost of living advantage. 10% lower. Still, some risks could hinder further growth. The car dependent triangle is lacking in public Transportation infrastructure. A commuter rail plan was shelved in 2023, though the US Department of Transportation awarded the region a $25 million grant to fund a bus transit hub in 2024. We're not like Manhattan, where everything's right There together. You've got downtown Raleigh and North Hills, and Durham is 30 minutes from Raleigh, and you Have all these pockets of where people live. The interstates and the major roads in the triangle can Get very, very clogged. The region has tried to develop some mass transit that Has not happened. So I would say structurally transportation would be a Deterrent. But other than that, I think the triangle Is well positioned. And though housing is cheap relative to bigger metros, The cost has appreciated in part because of the Growing tech scene. Chapel Hill home prices were up 23.4% in June 2024 from the prior year. If you talk to enough people around here, you'll hear People complain about housing prices, especially in Chapel Hill. Since Covid, everything's gone up in Price because I think it's the same everywhere. We're not Dallas, we're not Austin.
We don't have these sexy big buildings. But not everyone is looking for that type of lifestyle. Hence the reason some stay. I always describe New York as high highs, low lows, but For me it was the community I never like felt. At least not for me. There's so much opportunity just in this market that We want to be sure we're growing in a way that feels Right, and to just open up so many of them and not Have that connection and that community feel. For me, that wouldn't necessarily be a success. I feel like you can have both here. You can be really successful. It's super exciting. It's really cool. So yeah, definitely. Congratulations. Thank you. Appreciate all your guys support. Absolutely.
