After spending 36 years in rural Virginia, Michael and Jane Lyons were ready for a big change. Armed with a low seven-figure budget, the couple wanted a lively, walkable city for their retirement. They chose Durham, NC, bypassing the usual Sunbelt hotspots.
“We were looking for cities with lots of amenities,” Michael tells Realtor.com®. “We were looking for good health care, we were looking for restaurants, entertainment, museums. Durham has all of that.”
The Lyons conducted extensive research and initially considered larger regional hubs such as Raleigh, NC, but were deterred by suburban sprawl and heavy traffic.
When the couple learned of the development of a new luxury high-rise, The Novus, in the heart of downtown Durham, they jumped at the chance to purchase their next home – four years before the building was completed.
For Michael and Jane, their new $1.8 million, two-bedroom, 2.5-bathroom, 2,300-square-foot condo with high-end amenities and smart home technology was worth the wait.
“I feel like I’m living on a cruise ship,” says Michael. “It’s that level of convenience.”
The 27-story tower consists of 54 condominiums and 188 rental units and features a resort-style swimming pool that is heated in the winter and cooled in the summer. a plunge pool; a steam room; a spa; pickleball pavilion; two fitness centers; a pet park with grooming stations; an outdoor kitchen with pizza oven and grill; an outdoor theater; and co-working spaces.
Beyond the physical bells and whistles, Jane says safety and a sense of community were paramount. The Novus’ underground parking, private access and circle of high-profile neighbors — from retired Wall Street executives and Freddie Mac executives to practicing local doctors — made the move a no-brainer for the Lyons.
Other things the couple liked included Durham’s walkability, manageable traffic, and access to over 100 restaurants and entertainment options within walking distance.
“It’s hard to explain the atmosphere you get in downtown Durham,” says Michael. “It’s intergenerational and intellectual. It’s inclusive and fun in every way.”
Far from being outliers, the Lyons are part of a broader trend of wealthy homebuyers flocking to the mid-sized southern hub. Immortalized in the 1988 sports comedy “Bull Durham,” the city attracts newcomers with its mix of cosmopolitan flair and small-town charm.
“The diversity in Durham is incredible,” says Michael. “It’s like New York.”
Key figures for the luxury market
Realtor.com’s April luxury report ranked Durham as the third fastest-growing emerging luxury market in the country.
Back then, the city in the heart of the Research Triangle — North Carolina’s technology and education hub anchored by Duke University, UNC-Chapel Hill and NC State University — saw nearly 24% year-over-year growth in million-dollar listings.
Homes for sale priced at $1 million or more accounted for over 16% of the market, with the entry point into the elite bracket – the top 10% – at $1.24 million.
“For about $1.2 million to enter the luxury category, a buyer from a coastal metro area gets top universities, major medical centers, quick airport access and a walkable core,” says Realtor.com’s senior economist Anthony Smith. “That combination is hard to achieve, and the subway has built on it.”
Notably, new construction is playing a large role in this shift, accounting for nearly a third of all luxury properties in Durham in July, up from about 30% in April.
The Rise, Fall and Rebirth of Durham
Durham’s emergence as a center for luxury real estate might come as a surprise to anyone who hasn’t set foot there in a few decades.
In the 19th and early 20th centuries, Durham was known as the tobacco capital of the world and was home to the headquarters of the American Tobacco Co. and the duke the family cigarette empire.
In fact, Durham’s nickname “Bull City” comes from the tobacco brand “Bull Durham,” which is manufactured in the area and marketed with the image of a bull.
When Durham’s tobacco and textile mills closed in the 1980s, Durham experienced a dramatic economic decline, ushering in an era of poverty and urban decay. The once bustling manufacturing center was littered with abandoned warehouses.
Durham’s renaissance began in 1994 with the opening of the Durham Bulls Athletic Park. Over the next few years, Downton’s revitalization accelerated as historic tobacco warehouses were converted into mixed-use spaces with apartments, offices and restaurants.
The opening of the Durham Performing Arts Center in 2008 and the subsequent restoration of the Carolina Theater drew thousands of visitors back to the empty downtown, breathing new life into the metro and revitalizing its economy.
As living conditions improved in Durham, demand for quality housing grew, driven by the Research Triangle’s strong employment base, further bolstered by recent corporate expansions from tech giants such as Google and Apple.
“Duke, UNC-Chapel Hill, their associated health systems and the life sciences presence in Research Triangle Park serve a large population of high earners tied to institutions rather than a single industry cycle,” Smith says. “Corporate relocations continue to replenish this pipeline.”
Emily Barkeran agent with Hodge & Kittrell Sotheby’s International Realty, agrees that interest from local luxury buyers is being driven by Duke and new tech jobs. Durham’s appeal is enhanced by its proximity to a major airport and access to outdoor recreation.
“There has been significant investment in downtown Durham over the last 10 to 20 years, which is now evident as more people invest in luxury real estate and call Durham their home or second home,” explains Barker.
Tower Life in Durham
Zac VuncannonVice President of Investments at Global Holdings Management Group, and Zach PragerFounder and CEO of Ternstone Holdings, the team behind the Novus Apartment Tower, saw an untapped opportunity in Durham’s evolving market, buoyed by high-earning professionals and wealthy retirees moving to the city.
Prager, who attended Duke and has now moved to Durham after living in New York City most of his life, says the city’s growing reputation as a cultural capital with world-class restaurants and acclaimed venues is among its greatest strengths.
“Within 15 minutes you can walk around the city,” Prager tells Realtor. “That means you have the Performing Arts Center seven minutes away. We always joked that you could come from New York, buy tickets to ‘Hamilton’ from New York, fly in, stay in a hotel, have dinner and see the show, and then fly back for less money than you would have to pay in New York City.”
Big developers like Global Holdings, which Prager points out can “invest anywhere in the world,” were watching closely for Durham’s resurgence.
“If you look at the data, you can see why people are starting to invest in the market and believe that’s where the market is going,” says Prager. “You’re seeing this huge movement of people from gateway cities … to secondary cities. It has to do with the cost of living, it has to do with the quality of life.”
According to the developers, newcomers moving to Durham from larger cities crave a sense of urban community amid a largely suburban landscape that forms the Research Triangle.
“As more and more people moved to the Triangle from other markets—New York, Washington, D.C., Chicago, for example—they became accustomed to a certain lifestyle that they really didn’t want to give up,” Vuncannon says. “And here The Novus offered the opportunity to literally grab the best location in the city center.”
Success story
The vision of a boutique condominium tower with state-of-the-art wellness facilities in a prime location worked: more than 20 contracts were signed while the previous building on the site was still being demolished.
“The demand was there from day one because people bought on their promise,” says Vuncannon.
Originally, condos in the building ranged from under $1 million to over $4 million. However, once construction began, unit prices increased by 20%. The project recently set regional records, with retail sales reaching $5.25 million and a penthouse resale reaching $5.65 million this summer.
While previous high-rises in Durham relied primarily on out-of-town buyers buying second homes, about 80% of buyers in Novus Triangle are residents upgrading their primary homes.
“We really created a gateway market, a gateway city building. And it was less of a ‘We believe if we build it, they will come,’ and more of a ‘We believe that the people who are here are interested in this type of housing,'” Prager says.
For the developers, final confirmation came when several initial tenants of The Novus decided to purchase.
“It’s not just someone who wants to buy because it’s a luxury building,” Vuncannon says. “It’s someone who wants to adopt this lifestyle permanently.”
