Why Are ITB "Inside the Beltline" Houses So Expensive?

Written by Chip Barker — Raleigh Real Estate Agent specializing in Inside the Beltline (ITB) neighborhoods including: Five Points, Hayes Barton, Budleigh, North Hills and surrounding neighborhoods. Updated 2026-05-20

Why Are Houses ITB So Expensive?

If you live in Raleigh, or follow any realtors in the area, you have probably heard about “ITB,” or “Inside the Beltline.” Homes in these neighborhoods often cost much more than homes in nearby suburbs, or houses between 440 and 540. But why?

ITB homes in Raleigh are expensive because land is limited, demand is high, neighborhoods are established, lots are often larger, homes have appealing architectural character, and buyers value proximity to downtown Raleigh, shopping, parks, top schools and employment. Many people are willing to pay more so they can spend less time driving and more time enjoying the city. 

ITB neighborhoods have very few empty lots left, which means buyers compete for the homes that are available. In many cases, builders buy older houses, just for the land, and replace them with larger luxury homes, called in-fill homes.  Older homes spanning multiple lots based on a recorded plat of an older neighborhood (called ghost lots) are even more desirable to builders and developers because it is easy to divide that parcel into the separate lots and build new homes on each of the new lots.  

People love the character of ITB neighborhoods. Areas like Five Points, University Park, The Village District (formerly Cameron Village), Forest Park, Boylan Heights, and Hayes Barton are known for mature trees, historic homes with interesting architechtural details, quiet streets with sidewalks, unique local businesses and easy access to the extensive Raleigh Greenway trail system. These neighborhoods feel different from newer suburban developments, and that charm adds value. 

Raleigh’s growth has also pushed prices higher.  Thanks to the breadth of industry in the area, more people are moving here for jobs in technology, healthcare, education, and government. Many new residents come from larger cities where housing costs are even higher, so Raleigh homes still seem very affordable to them. 

Finally, supply and demand play a major role. More people want to live ITB than there are homes available. When demand is high and inventory is low, prices rise. 

For many buyers, living ITB is about more than just the house — it is about lifestyle, convenience, and long-term value. 

To begin your search for your new Inside the Beltline Home, or keep an eye on homes selling near you https://chipbarker.com/itb-inside-the-beltline-homes-for-sale 

Chip Barker’s University Park & ITB Experience

• Licensed since 2005 and a full time Real Estate Broker since 2012
• 300+ total homes sold
• 50+ sales in ITB zip codes
• Resident of ITB neighborhoods since 1998
• NCSU graduate - Accounting
• Finance background with Nortel Networks for 17 years