The latest region we’re keeping an eye on for real estate investment opportunities is South Carolina: an emerging hub for diverse job opportunities, affordable home prices, and high rental rates.
The state is slated to be particularly lucrative for multifamily real estate in 2024, thanks to its growing economy and increased influx of young professionals, families, and retirees alike. Let’s explore the details of the state’s financial potential so you can understand how to best benefit as an investor in the region!
2024 real estate: Why South Carolina?
South Carolina’s real estate market is growing quickly. With a plethora of available jobs in manufacturing, technology, and healthcare, young professionals are flocking to the state’s urban areas with their families in tow, on the hunt for multifamily rentals with good rates and high property value.
Beyond the young-professional-and-family demographic setting up shop in the urban centers, South Carolina is simultaneously welcoming a rush of retirees who are drawn to the state for its coastal and inland communities. This means multifamily real estate is in hot demand for cities and suburbs alike, with a major focus on the following regions.
Charleston
With a 9.9 percent vacancy rate and recent blue- and white-collar job growth, Charleston is one of South Carolina’s most populous cities, and one of the highest-ranking when it comes to multifamily real estate investments. Major conglomerates like Boeing, Volvo, and Bosch have recently expanded into Charleston, and growth in imports at the Port of Charleston means there are more openings than ever in logistics and warehousing.
Charleston also has a rich history and vibrant culture, which means tourists and new residents alike are constantly flocking to the region, and its proximity to the coast successfully attracts retirees and remote workers on the hunt for a new, relaxing environment.
Columbia
As South Carolina’s capital and largest city, Columbia hosts a booming economy and growing population. It’s home to the University of South Carolina, which means the city has a constant stream of students and government employees alike—a.k.a., new residents consistently looking for a place to live.
Columbia’s real estate market is moving quickly to keep up with the demand. With a 9 percent vacancy rate and an average monthly rent of $1,270 for a one-bedroom, Columbia is one of the most affordable multifamily markets in the state.
Greenville
Greenville is another hotspot for multifamily investors, thanks to its affordable property prices, high rental rates, and steady stream of new residents. A hub for some of the nation’s most lucrative automotive organizations like BMW Group and Michelin, many young professionals are moving to Greenville to level up in their careers and settle their families in a safe, affordable area. Couple that with revitalization efforts in downtown Greenville, which has helped offices and retailers expand, and you’ll understand why the city’s population has grown by over fifteen percent since 2010.
A diverse economy, a rising population, and a high quality of life
Charleston, South Carolina
Each South Carolina city we highlighted has its own unique appeal, but in general, people are flocking to the southern state for its diverse economy, rising population, and high quality of life.
The state’s economy is thriving thanks to job openings in automotives, aerospace, healthcare, and technology, but the real key here is diversity. A wide variety of industry types means South Carolinians will be more resilient to economic fluctuations; if one sector is struggling, they’ll have an easier time pivoting to something more lucrative.
A plethora of career opportunities isn’t the only reason people are moving to South Carolina. The state is also attractive for its low cost of living, favorable climate, and high quality of life. Think: vibrant communities, diverse culture, and tons of opportunities to be entertained. Couple that with access to outdoor activities and the coast, and there’s something for everyone in South Carolina.
South Carolina real estate: Robust housing market, affordable property prices, and high rental rates
Now that you understand why Americans are attracted to South Carolina, let’s figure out what the appeal is for investors in 2024.
A hot housing market
South Carolina’s housing market indicates a strong demand for homes, thanks to its steady population growth, diverse job opportunities, and favorable climate. A robust housing market typically means a healthy economy and stable property values, making it highly attractive to real estate investors.
Practical property prices
Cities like Greenville, Columbia, and Charleston tend to offer relatively affordable property prices compared to the rest of the U.S. The combination of affordable housing and a high quality of life makes South Carolina an appealing destination for multifamily real estate investors—like us! Affordable property prices allow investors to achieve property ownership more easily and may also attract buyers from more expensive housing markets seeking better bang for their bucks.
High rental rates
South Carolina’s high rental rates means there’s a stronger demand for rental properties, which is music to the ears of multifamily investment. High rental rates incentivize aspiring renters to consider relocating to South Carolina, further stimulating the housing market and contributing to economic growth in the region.
Keep learning
From population growth and job diversity to a bustling economy and a higher demand for rentals, South Carolina is one of the #1 states to keep an eye on when it comes to real estate investment opportunities in 2024. To delve deeper into South Carolina’s appeal and explore how Leapfrog Funds utilizes the state’s market to optimize returns for our investors, get in touch with us today.
Your South Carolina Real Estate Cheat Sheet:
- Average rent prices in Charleston for one-bedroom: $1,990/month
- Average rent prices in Columbia for one-bedroom: $1,270/month
- Average rent price in Greenville for one-bedroom: $1,410/month
- YOY increase (as of March 2024): 6.5%
- South Carolina property tax rate: 0.57%
- Is 2024 a buyer or seller’s market in South Carolina? The rise in housing demand and population growth means South Carolina is a seller’s market for 2024. However, buyers can still benefit from these increased sales and available housing options.
- The next predicted market crash in South Carolina: N/A! Experts don’t predict any crash. Instead, the numbers point to a long term sustainable growth.
Continuing the conversation on value-add strategy
Value-add strategies can offer attractive opportunities for real estate funds, especially if you’re an investor looking for a balanced risk level, high-return investment designed to adapt.
To ensure you understand how value-add strategy brings you benefit as an investor, contact us today.
