MARKET SNAPSHOT
Apartment development in the Charleston metro area is experiencing a significant slowdown, with the volume of units under construction at the end of 2024 down 43% year-over-year. New completions are projected to decline by more than 73% in 2025, reflecting a sharp reduction in construction activity. Developers initiated just over 900 new units in 2024—a 72% drop in apartment starts—indicating fewer future deliveries and easing supply pressures through late 2025.
New unit completions in 2025 are expected to decline further from the record-breaking levels of the previous year, with development concentrated in four of the nine metro submarkets. Daniel Island, Charleston’s affluent suburb, will lead with nearly 500 new units, followed by Johns Island/West Charleston (393 units), Downtown Charleston (314 units), and Summerville/Goose Creek (304 units). As major projects near completion and financing challenges persist, supply constraints are anticipated to intensify in 2026 and 2027, further limiting new inventory and supporting market stabilization.
Charleston’s rental market saw a moderate increase in demand in 2024, with steady absorption throughout the year. Approximately 3,430 units were absorbed, reflecting a 26% year-over-year increase compared to 2023. However, this demand was unable to fully offset the record-breaking completions in 2024, resulting in a 100-basis-point decline in occupancy rates, which settled at 92.0% by years end.
Looking ahead, new unit completions in Charleston are expected to decline sharply in 2025, dropping by 73% from 2024 levels and reaching its lowest volume since 2015. Provided economic conditions remain stable, the multifamily market is anticipated to gradually stabilize over the course of the year. Among Charleston’s nine submarkets, occupancy rates are expected to remain unchanged in four, while slight declines of 10 to 90 basis points are projected in the other five. Overall, the metro’s average occupancy rate is forecast to decline a modest 10 basis points to 91.9% by the end of the fourth quarter of 2025.
The Charleston apartment market is reflecting broader trends seen across many primary and secondary Sun Belt markets, with rent growth facing downward pressure due to a surge in unit completions. In 2024, a record-breaking 5,550 new units were delivered across the metro—the highest annual total of this century. This influx of supply led to the first year-over-year rent decline in a decade, albeit a modest one, with average effective rent decreasing by 0.1% to $1,752 per month in Q4 2024.
Despite overall new supply challenges, some submarkets experienced notable rent growth. Both Downtown Charleston and Mt. Pleasant, the metro’s two most expensive submarkets, recorded a strong 3.2% annual increase in rental rates, reaching $2,606 and $2,245 per month, respectively. Conversely, submarkets such as Johns Island/West Charleston, Daniel Island, West Ashley, and Summerville saw rent declines ranging from -0.7% to -3.5% year-over-year, reflecting the uneven impact of new supply across the metro.
The outlook for 2025 is increasingly optimistic, with positive rent growth anticipated across all submarkets by the second half of the year. At the market level, annual rent growth is forecasted to rebound to 1.1% in Q3, with further acceleration to 2.2% by Q4, bringing the average monthly rent to $1,790. North Charleston is expected to lead the metro in rent growth, with a projected 2.8% annual increase by year-end, supported by a major slow down of development activity in this submarket.
12-month period ending November 2024
Charleston’s economic outlook remains strong, with the addition of 6,800 new jobs in 2024, representing a 1.6% expansion of the employment base. The multifamily market is poised to regain momentum, supported by steady job growth across both blue- and white-collar sectors and a consistent influx of new residents drawn to the region’s economic opportunities and high quality of life. A key driver of economic growth is Google’s $2 billion investment in two new data center campuses, which is expected to further stimulate the local economy, generate employment opportunities, and drive housing demand.
While a surge in new apartment supply has weighed on occupancy rates over the past few years, a significant slowdown in the pace of unit completions is expected to alleviate supply pressures in the latter half of 2025. New completions are projected to decline substantially, with new supply concentrated in just four submarkets: Daniel Island (497 units), Johns Island/West Charleston (393 units), Downtown Charleston (314 units), and Summerville/Goose Creek (304 units). With a more balanced pace of deliveries, market fundamentals are set to improve, supporting a projected 2.2% increase in rents for the broader Charleston market by Q4 2025. As Charleston solidifies its position as an advanced manufacturing hub and expands its emerging technology sector, the metro’s strong economic fundamentals and improving supply-demand balance make it an increasingly attractive destination for multifamily investment, presenting promising opportunities in the years ahead.
