After spending 36 years in rural Virginia, Michael and Jane Lyon were ready for a big change. Armed with a low seven-figure budget, the couple set their sights on a vibrant, walkable city for their retirement. They chose Durham, NC, bypassing the usual Sun Belt hot spots.
“We were looking for amenity-rich cities,” Michael tells Realtor.com®. “We were looking for good healthcare, we were looking for restaurants, entertainment, museums. Durham offers all of that.”
The Lyons conducted extensive research and initially considered larger regional hubs such as Raleigh, NC, but they were put off by the suburban sprawl and heavy traffic.
When the couple learned of a new luxury high-rise tower, The Novus, under development in the heart of downtown Durham, they jumped at the chance to purchase their next home—four years before the building was finished.
For Michael and Jane, their new $1.8 million two-bedroom, 2.5-bathroom, 2,300-square-foot condo equipped with high-end finishes and smart home technology was worth the wait.
“l feel like I live on a cruise ship,” says Michael. “It’s that level of amenities.”
The 27-floor high-rise made up of 54 condos and 188 rental units features a resort-style swimming pool heated in winter and cooled in summer; a plunge pool; a steam room; a spa; pickleball pavillion; two fitness centers; a pet park with grooming stations; an outdoor kitchen with a pizza oven and grills; an outdoor theater; and co-working spaces.
Beyond the physical bells and whistles, Jane says security and a sense of community were paramount. The Novus’ underground parking garage, private access, and coterie of high-caliber neighbors—ranging from retired Wall Street executives and Freddie Mac administrators to practicing local physicians—made the move a no-brainer for the Lyons.
Other items that appealed to the pair included Durham’s walkability, manageable traffic, and access to over 100 restaurants and entertainment venues within an easy stroll.
“It’s hard to explain the vibe that you get in downtown Durham,” says Michael. “It is multigenerational, intellectual. It’s inclusive, it’s fun in every regard.”
The Lyons are not outliers but rather part of a broader trend of affluent homebuyers flocking to the midsized Southern hub. Immortalized in the 1988 sports comedy “Bull Durham,” the city draws newcomers with its blend of cosmopolitan flair and small-town charm.
“The level of diversity in Durham is incredible,” says Michael. “It’s like you would find in New York.”
Luxury market metrics
The Realtor.com April luxury report ranked Durham as the nation’s third fastest-growing emerging luxury market.
At the time, the city at the heart of the Research Triangle—North Carolina’s technology and education hub anchored by Duke University, UNC-Chapel Hill, and NC State University—posted a nearly 24% year- over-year growth in million-dollar listings.
For-sale homes priced at $1 million or higher accounted for over 16% of the market, with the entry point into the elite tier—the top 10%—sitting at $1.24 million.
“At roughly $1.2 million to enter the luxury tier, a buyer coming from a coastal metro gets top-tier universities, major medical centers, quick airport access, and a walkable core,” says Realtor.com senior economist Anthony Smith. “That combination is hard to come by, and the metro has built around that.”
Notably, new construction plays a huge role in this shift, representing nearly one-third of all luxury listings in Durham as of July, up from roughly 30% in April.
The rise, fall, and rebirth of Durham
Durham’s rise as a luxury housing hub might come as a surprise to anyone who has not set foot there in a few decades.
Throughout the 19th and early 20th centuries, Durham was known as the tobacco capital of the world, home of American Tobacco Co. headquarters and the Duke family’s cigarette manufacturing empire.
In fact, Durham’s nickname, “Bull City,” comes from the “Bull Durham” brand of tobacco produced in the area and marketed with the image of a bull.
When Durham’s tobacco factories and textile plants shuttered in the 1980s, Durham experienced a dramatic economic decline that ushered in an era of poverty and urban blight. It left the once-bustling center of manufacturing littered with abandoned warehouses.
Durham’s renaissance began in 1994 with the opening of the Durham Bulls Athletic Park. Over the next few years, the revitalization of downton accelerated as historical tobacco storage facilities were transformed into mixed-used spaces, including housing, offices, and restaurants.
The arrival of the Durham Performing Arts Center in 2008, followed by the restoration of the Carolina Theatre, drew thousands of visitors back to the emptied downtown, breathing new life into the metro and giving its economy a boost.
As living conditions in Durham improved, demand for high-end housing grew, fueled by the Research Triangle’s strong employment base, bolstered further by the recent corporate expansions of tech giants such as Google and Apple.
“Duke, UNC-Chapel Hill, the health systems attached to them, and the life sciences footprint in Research Triangle Park sustain a large population of high earners tied to institutions rather than a single industry cycle,” says Smith. “Corporate relocation keeps replenishing that pipeline.”
Emilie Barker, a broker at Hodge & Kittrell Sotheby’s International Realty, agrees that local luxury buyer interest is driven by Duke and incoming tech jobs. Durham’s appeal is further enhanced by its proximity to a major airport and access to outdoor recreation.
“Substantial investment has been made in downtown Durham over the last 10 to 20 years, which is apparent now as more people invest in luxury properties and call Durham home, or their second home,” Barker explains.
Tower living in Durham
Zac Vuncannon, vice president of investments at Global Holdings Management Group, and Zach Prager, founder and managing principal of Ternstone Holdings, the team behind The Novus apartment tower, saw an untapped opportunity in Durham’s evolving market energized by high-earning professionals and wealthy retirees moving into the city.
Prager, who attended Duke and has now relocated to Durham after living in New York City most of his life, says the city’s growing reputation as a cultural capital with top-rated restaurants and celebrated performance venues is among its greatest strengths.
“Within 15 minutes, you can walk the city,” Prager tells Realtor. “That means that 7 minutes away, you have the Performing Arts Center. We used to joke that you could come from New York, you could buy tickets to ‘Hamilton’ from New York, fly in, stay in a hotel, get dinner, go see the show, you can fly back for less than you’d have to pay in New York City.”
Major developers like Global Holdings, which Prager points out “can invest anywhere in the world,” sat up and paid attention to Durham’s resurgence.
“If you look at the data, you can see why people would start investing in the market and believing that’s where the market’s going,” says Prager. “You’re seeing this huge movement of people from gateway cities … to secondary cities. It has to do with cost of living, it has to do quality of life.”
According to the developers, newcomers relocating to Durham from larger cities are craving a sense of urban community amid a largely suburban landscape making up the Research Triangle.
“As more people from other markets—i.e., New York or Washington, DC, or Chicago—moved to the Triangle, they were used to a certain lifestyle that they really didn’t want to give up,” says Vuncannon. “And that’s where The Novus presented an opportunity to literally get the best site in downtown.”
Success story
That vision of a boutique condo tower with the latest wellness features in a prime location paid off: More than 20 contracts were signed while the previous building on the site was still being demolished.
“The demand was there from Day 1 because people were buying on the promise of it,” says Vuncannon.
Originally, condos in the building ranged from under $1 million to over $4 million. However, once construction got under way, unit pricing appreciated 20%. The project recently set regional records with individual sales reaching $5.25 million and a penthouse resale fetching $5.65 million this summer.
Notably, while earlier high-rises in Durham relied heavily on out-of-town buyers purchasing second homes, roughly 80% of shoppers at The Novus are Triangle residents upgrading their primary homes.
“We were truly bringing a gateway market, a gateway city building. And it was less of a ‘We believe if we build it, they will come,’ and it was more of a ‘We believe the people that are here are interested in this type of living,'” says Prager.
For the developers, the ultimate validation came when several initial renters at The Novus decided to buy.
“It’s not just someone wanting to buy because it’s a luxury building,” says Vuncannon. “It’s someone wanting to embrace the lifestyle permanently.”
