MARKET SNAPSHOT

2025 Charleston Forecast

2024

FORECASTED ANNUAL CHANGE

2025

$1,752

Q4 AVG. EFFECTIVE RENT

2.2%

FORECASTED ANNUAL CHANGE

$1,790

Q4 Avg. Effective Rent

92.0%

Q4 AVG. OCCUPANCY

-10 BPS

FORECASTED ANNUAL CHANGE

91.9%

Q4 Avg. Occupancy

5,552

2024 COMPLETIONS

3,298

10 Yr. Avg. Annual Completions

1,502

2025 COMPLETIONS

3,432

2024 NET ABSORPTION

2,713

10 Yr. Avg. Annual Net Absorption

2,215

2025 NET ABSORPTION

Source: CoStar
Key Market Themes for 2025
  • NEW SUPPLY PRESSURES TO EASE AS 73% DROP IN UNIT COMPLETIONS IS ANTICPATED FOR 2025

    Multifamily construction in Charleston has slowed significantly, with new starts down 72% and completions expected to decline by 73% in 2025, marking a substantial pullback in development activity.

  • RENT RECOVERY IN SIGHT FOR THE CHARLESTON APARTMENT MARKET

    Following a subdued performance in 2024, rent growth is set for a rebound, with rents forecasted to rise by 2.2% by year end 2025, reaching an average of $1,790 per month.

  • OCCUPANCY RATES EXPECTED TO STABILIZE IN 2025

    After falling to 92.0% in 2024 due to record-breaking completions, Charleston’s average occupancy rate is expected to stabilize at 91.9% in 2025. Limited new supply and steady demand are set to rebalance the market, paving the way for occupancy gains in 2026.

2025 SUPPLY TRENDS

MULTIFAMILY STARTS DECREASED IN 2024

MULTIFAMILY STARTS DECREASED IN 2024

2023: 3,291 units > 2024: 916 units

Annual Increase of 2,375 units or -72%

10 Yr. Historical Annual Average: 3,349 units

UNITS UNDER CONSTRUCTION TRENDING BELOW THE 10 YEAR AVERAGE

UNITS UNDER CONSTRUCTION TRENDING BELOW THE 10 YEAR AVERAGE

3,050 units under construction as of December 31st 2024

10 Yr. Historical Annual Average Units UC: 5,321

43% Lower than historical average

UNIT COMPLETIONS PROJECTED TO DECREASE IN 2025

UNIT COMPLETIONS PROJECTED TO DECREASE IN 2025

2024: 5,552 units > 2025: 1,502 units

Annual Decrease of 4,050 units or -73%

10 Yr. Avg. Annual Completions: 3,135 units

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.

2025 RENT & OCCUPANCY TRENDS
ANNUAL RENT GROWTH & OCCUPANCY
OCCUPANCY TRENDS

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.

RENT TRENDS

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.

Submarket Rent & Occupancy

2024 INCOME & EXPENSE ANALYSIS

12-month period ending November 2024

CLICK TO VIEW FORECAST DATA

INCOME

INCOME
Income AssumptionsValue / UnitYear Change (%)
Occupancy (%)91.40%-0.1%
Rental Income / Occupied Unit$1,651.614.1%
Recoverable Expenses / Occupied Unit$72.868.3%
Other Income / Occupied Unit$86.42-3.6%
Total Income / Occupied Unit$1,810.893.9%
Operating Income
Rental Income$1,509.654.0%
Recoverable Expenses$66.608.2%
Other Income$79.00-3.6%
Total Income$1,655.253.8%

EXPENSES

EXPENSES
Operating ExpensesValue / UnitYear Change (%)
Payroll$151.665.3%
Marketing & Advertising$30.035.1%
Repairs & Maintenance$95.64-2.3%
Administrative$44.10-0.8%
Management Fees$43.872.6%
Utilities$82.381.5%
Real Estate & Other Taxes$204.433.1%
Insurance$90.0023.9%
Other Operating Expensees$6.19
Total Operating Expense$748.304.9%
Net Operating Income$906.952.9%
Please note that the income and expense data presented in this section is sourced from trusted third-party data providers and does not reflect the entire market. While we strive for accuracy, our firm does not provide any warranty or guarantee regarding the reliability or precision of this information. We recommend users exercise discretion and professional judgment when interpreting and utilizing this data.
MARKET OUTLOOK

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.

Disclaimer: This multifamily forecast incorporates data from reputable third-party sources, including Costar, Yardi Matrix, the U.S. Census Bureau, the U.S. Bureau of Labor Statistics, and ESRI. While we make every effort to ensure accuracy, we cannot guarantee the reliability of the projections provided. Forecasts are inherently subject to change due to evolving market conditions, economic factors, and unforeseen events. We strongly encourage users to conduct independent due diligence and consult with an MMG Advisor before making any investment decisions based on this information.

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