Investment Insights/Trends For The Charleston Real Estate Market

Charleston, South Carolina is one of the most historic, beautiful cities anywhere in the United States. As is the case with all real estate transactions, it’s a good idea to understand the current trends going on in the area. Whether you’re looking to buy or sell a home or you’re monitoring different areas for investment purposes, real estate is a trend-driven industry. With that in mind, let’s take a look at Charleston, SC.

Population Growth

There are two groups currently flocking to Charleston, SC, leading to a major boom in the city’s population. While some cities see a boom in a single age group, Charleston is currently experiencing a population boost in both baby boomers and millennials. Older people are moving to Charleston because of the quality of life and the climate, while millennials are attracted to the area because of the growing economy.

What does that mean for you? Most baby boomers are looking to downsize. Now that their children have reached adulthood and moved out on their own, they no longer need three to four bedrooms and spacious living areas. Additionally, millennials who are often just getting a start in life are looking for smaller options with minimal costs. If you have a smaller home, the influx of these two age groups provides a great potential customer base if you want to sell.

Job Market

While baby boomers are looking for a place to retire, the wave of younger people moving to Charleston is looking for jobs. Fortunately, Charleston has no shortage in that department. Home to a thriving tech scene, Charleston, SC experienced a 1.3% growth in jobs last year as median household incomes increased by roughly 6.2%. Major industries in Charleston include technology, automotive, aerospace, life sciences, logistics, and info tech.

While many cities are facing a decrease in jobs due to the ongoing pandemic, Charleston seems to be trending upward in employment opportunities.

Good For Renters

Even though rent has increased in Charleston, SC by roughly 9% over the last year, it’s still considered a good market for renters. 47% of homes in Charleston are occupied by renters, and 53% of those properties rent for between $1,001 and $1,500 per month. The pro-renter market is largely driven by the imbalance between the housing inventory and the demand for it.

Real Estate Market

A 2020 report by Forbes predicted that Charleston, SC would be one of the hottest real estate markets in the country going forward, and that’s certainly been proven true. The housing inventory in Charleston is limited just like the rest of the country. That means that Charleston is also a hot seller’s market at the moment.

The value of homes in Charleston has increased by more than 11% over the last 12 months. That means that things are great for investors and sellers, who regularly receive multiple offers on their home. However, for homebuyers, the competitive market means higher prices.

If you’re looking to purchase a home in Charleston, SC, you should probably plan on paying more than the asking price right now. Additionally, you’ll want to act quickly when you find the right home, as it will probably receive multiple offers.

There is little expectation that the housing market in Charleston will change over the next 12 to 18 months. With that in mind, Charleston remains a great market for investors or homeowners who want to sell their property for a profit.