People said that charleston sc real estate is one of the most promising real estate markets in the US. This claim seems not that far from the truth. According to the National Association of Realtors, the real estate market in this area has performed well, even during the COVID pandemic. It even is included in the top ten list of the real estate market that grows bigger post-COVID pandemic.
The trust in Charleston real estate market’s promising growth also comes from Realtor.com. They predict that Charleston would be the main destination for the customer to find affordable property in bigger cities in 2021. With all these good signs that many experts see, it is not wrong if we believe that the real estate market in this area will show more growth in the next few years.
Furthermore, many factors show the promising growth of charleston sc real estate. For example, Charleston Regional Business Journal explained that affordable housing, job availability, and local economic growth are the factors that cause the real estate market to become much better.
BiggerPockets also ranked Charleston as the top seven best cash flow markets in 2020. This area has a low unemployment rate. Furthermore, the population growth also reaches double-digit, which also affects the gross rental yields which reach almost 10%.
Now, to understand more about the real estate market in Charleston, we have collected information that you can use as a reference. We will see from various perspectives to reach the conclusion that gives us insight into what is happening and will happen in the real estate market in Charleston. Let’s start!
Charleston, SC Population Growth
According to the United States Census Bureau, more than 73% of the counties in the United States experienced an unbalanced number of deaths and birth rate in 2021. Many of them have more deaths than births. In 2019, the death rate reached 45%, while in 2020 reached 55%. According to this data that was released in March 2022, it shows a significant growth in mortality rate.
The forecast for population growth even shows the worst result. According to Economic Modeling Specialists Intl (EMSI), by 2030, we will experience the phenomenon called Demographic Drought. It started with the last baby boomers that turn 65 years old. Then, by 2034, they also estimated that the number of adults will be more than children.
Based on the data above, we can estimate that the population growth in many cities and counties in the United States will decrease. If that happens, the demand for housing will also fall. That can slow down the real estate market growth, especially after the hit during the pandemic. How about the Charleston area?
Fortunately, Charleston shows a much better situation than the data above. According to the Census Bureau, Charleston experienced more births than deaths in 2021. It happens in all three metropolitan Charleston metro areas. Furthermore, there is also a positive sign for the migration rate to this area. So, we can expect a good charleston south carolina real estate market growth.
The Census Bureau stated that the population in the Charleston metro area has grown by 10,000 people in 2021. It is a 1.3% growth rate compared to the nationwide population growth rate which is only 0.1%. The estimation number of the population in the metro area in 2021 for Charleston is 813,052.
That data makes us ask this question. Why is Charleston an attractive destination for people to move in? This city is the center of business. Therefore, many investors and entrepreneurs join actively in this area’s development. Because of that, the job availability becomes much higher than in other areas close to this city.
More jobs mean more chances for people to live and work in Charleston. Thus, it attracts more people to move to this city. And, if we see it from a real estate market perspective, it means there are more demands for its product.
Charleston SC Real Estate Market
Due to the high population growth rate, the real estate market in Charleston also shows good condition. According to the Charleston Trident Association of Realtors, by November 2021, the median price of homes in the Charleston area has increased by 14.4% year-over-year.
Moreover, the inventory supply is also in good condition. By the 3rd quarter of 2021, the supply rate can only last for less than one month. It means the demands for housing are so high. We also see that the construction project could supply the demand for housing.
Because of the high demand, it also affects the median prices for a single-family home in Charleston. The median home price charleston sc has increased by 16%. Currently, the median price of a house in this area is $363.700. Does it seem higher than the standard housing prices?
It does seem expensive. However, if you compared it with the national average median price of a single-family home, we can see a positive sign. The average median price in the US is $374,900. As you can see, it is below average. That means it is reasonable to say that many people decided to move to Charleston because of the housing affordability.
Let’s see what other data providers said about the Charleston real estate market. The first one is Zillow. Zillow stated a positive sign of the Charleston real estate growth.
- According to the Zillow Home Value Index (ZHVI) the value of a house is $443,483 by November 2021. This number shows an increase of 23.2% compared to 2020.
- Looking back at the past five years; we can see that the increase shows an even more significant number, which is 54%. It is the sign of a positive situation for the investor to start the property investment in this area.
According to the Charleston Trident Association of Realtors, the inventory supply has increased by 47% by November 2021. This number was received after comparing it with the year-over-year method. The supply period is about 0.9 months, which matches the data from other organizations. Is it a good number?
That length is 50% lower than the same time in 2020. That means two things: the construction project was going slower than what is supposed to be. On the other hand, it also shows the increase in demand for housing in Charleston. The real estate market has a better future if we took a look from this point only.
Realtor.com also has released information regarding the median price of charleston sc real estate. It is about the location or neighborhood for investment. So, among 60 neighborhoods in Charleston, the most expensive one is South of Broad. The median price for a single-family home in this area easily reaches $2 million. This area is also known as the elite area. Therefore, it is normal to have that kind of price.
How about the most affordable one? In Charleston, the most affordable neighborhood is Ardmore-Sherwood Forest. The median price is only $305,000. It is lower than the average median price of a house in the Charleston area.
As you can see, you have two options: the area where you can buy a house for investment or a living place. You might need to prepare everything beforehand for that. However, we believe that you will get the best property that you need. How about the living conditions in Charleston?
Cost of Living in Charleston SC
Other than charleston sc real estate market condition and the price of the property, the living cost is also an essential factor that we consider to see the real estate market situation in Charleston. Affordable housing prices, most likely make the living cost much lighter for you who move to this area.
According to PayScale, the cost of living in Charleston is almost the same as the national average. They show a 0% difference, which means you will need a similar amount of income. PayScale stated that you should get at least $25,695 a year to live comfortably in Charleston.
Every month, you need to spend around $3,680.12 with rent for living in Charleston with your family of four. If you live alone, you only need about $1,053 per month. Therefore, this city is the best choice for you who plan to rent a house rather than buy or own it.
WalletHub also stated that Charleston is the best market for you who want to rent a property. It has a high rating for marketplace activity. Therefore, you have a better chance to get the best quality property at the most affordable rental fee. The high rental activity also means that you will get more options of property you can choose for your living place.
Charleston SC Real Estate Market Forecast
According to Maison Real Estate, four trends will happen in real estate charleston sc. They are:
- Decrease in Property Supply
The decrease in property supply is clearly shown this year, with 741 properties available in February 2021 becoming only 347 in 2022. Therefore, the trend will keep going at least until 2024. This will become a challenge for a property developer to provide more buildings for the people that keep increasing every year.
Furthermore, the availability will also get shorter. Next year, the property inventory rate will only last at least 25 days. It will become shorter as the demand is much higher than the speed of the property construction.
- Full-time Residents with Family
There will be a high flux of groups of families coming to Charleston for living permanently. Most of them will come from New England, Chicago, and Ohio. The family from Atlanta and Charlotte will also join the group.
Therefore, it affects the type of property that will be in high demand in the future. The vacation home will most likely have low demands. However, a house with outdoor living space and a family-friendly environment will be in high demand.
- House as An Office
Many people also will turn their house into an office. Or, they provide a space where they can work at home. This will increase economic growth while increasing the demand for a house with more spaces. Therefore, it will become a challenge for interior designers and contractors to create homes for sale in charleston sc match that demand.
- Lower House Selling Rate
One of the most interesting forecasts is the low selling rate. People who already got the property and moved and live in Charleston will most likely don’t want to sell their house. It is so comfortable to live in this city which makes them want to stay for more years.
The profit from selling a house will be absorbed later by the new people that buy the house. Therefore, it is worth keeping for much longer until you get the promising value for your property.
Charleston SC Real Estate Market FAQs
- Will Charleston real estate market slow down?
It will even increase and be more active in the next few years because more people come to Charleston which increases the demand for property.
- Is Charleston a Buyer’s Market?
The demand for property is higher than the supply.
- When is the Best Time to Buy Property in Charleston?
January, because it has fewer buyers, means lower competition.
- Do I Buy or Rent Property in Charleston?
Buying is the best choice. The property value in this area is considered high. Moreover, the development of the business environment is also high. So, you will get a job where you can stay for much longer in Charleston. Thus, buying is preferable.
With so many changes during the pandemic and other problems in other areas, Charleston remains unaffected. It means the charleston sc real estate is stable and strong to survive the crisis. The economic growth is also promising. Many jobs are available for anyone who moves to this city. That means the real estate market activity will be much higher than in 2021. So, if you want to invest in property, start it now in Charleston.