average rent
average occupancy rate
ytd sales volume
YoY rent change
yoy occupancy change
individual transactions
QUARTERLY DEMAND
YTD: 1,491
QUARTERLY COMPLETIONS
YTD: 1,974
Average Monthly Mortgage Payment
Average Monthly Rent
In the most recent quarter, Charleston’s rental market showcased its resilience with a solid 94.0% occupancy rate, despite a year-over-year decline of 120 basis points. However, the market noted a 30-basis point uptick from the last quarter, pointing to renewed demand for Charleston rentals. Class A units led in occupancy at 94.5%, followed closely by Class B and Class C units at 94.0% and 93.8%, respectively. Submarket occupancy ranged from 93.0% to 94.6%, with North Charleston/Goose Creek and West Ashley standing out. Projections for the next year forecast a steady occupancy rate around 95.0%, highlighting Charleston’s market resilience and signaling readiness for potential growth.
In Q3 2023, Charleston’s rental market stood out for its resilience, posting a 3.6% year-over-year growth in rents, matching its pre-pandemic annual growth rate. The market outperformed its southeastern neighbors, led by Class A units observing a 2.4% annual increase. Class B and Class C units followed at 2.2% and 0.7%, respectively. The Downtown/Mount Pleasant/Islands submarket led in annual rent growth at 2.4%, with West Ashley close behind at 2.3%. These figures reaffirm Charleston’s rental market’s enduring appeal and growth potential, even amidst broader economic fluctuations.
| Submarket | Average Occupancy | Annual Occupancy Change | Average Monthly Rent | Annual Rent Change |
|---|---|---|---|---|
| Downtown/Mount Pleasant/Islands | 94.1% | -1.9% | $2,209 | 4.2% |
| West Ashley | 94.6% | -0.6% | $1,667 | 4.1% |
| North Charleston/Goose Creek | 94.6% | -1.1% | $1,494 | 4.5% |
| Summerville/Northwest Charleston | 93.0% | -1.1% | $1,608 | 1.2% |
| Charleston-North Charleston, SC | 94.0% | -1.2% | $1,779 | 3.6% |
Units Under Construction
Units UC Delivering In the Next 4 Quarters
In the early months of 2023, the Charleston apartment market witnessed a slower pace in transaction activity. Data from MSCI Real Capital Analytics revealed that only six properties were traded in the first three quarters, resulting in a trade volume of $254.5 million, a sharp 71.7% drop year-over-year. However, the silver lining is a 10.6% surge in the average price per unit, which climbed to $253,500. Despite the dip in transaction volume, the market’s affordability and solid economic fundamentals continue to attract investors.
* Trailing 4Q average PPU
* Preliminary Data from RCA – Individual transaction $2.5M +
In August 2023, the Charleston-North Charleston, SC metro area witnessed a remarkable net gain of 18,000 jobs compared to August 2022, signifying an impressive 4.5% increase in employment. Consequently, the unemployment rate saw a notable decline of 100 basis points compared to the previous year, reaching a remarkable low of 2.1%, significantly below the national benchmark of 3.9%. Among the sectors, the professional and business services industry stood out with the most substantial job gains, adding 5,000 positions, which represents a remarkable 7.8% expansion. This sector’s growth was further fueled by the leisure and hospitality industry, which experienced a robust expansion of 5.8%, adding 3,100 jobs to the workforce. These positive trends underscore the region’s strong economic momentum and thriving employment prospects.
August Annual Jobs Created
August 23 Employment growth
August 23 Unemployment rate
3.9% us may rate
| Sector | Change from May 2022 to May 2023 | Percent Change |
|---|---|---|
| Professional and business services | 5,000 | 7.8% |
| Leisure and hospitality | 3,100 | 5.8% |
| Education and health services | 2,900 | 6.3% |
| Trade, transportation, and utilities | 2,100 | 2.9% |
| Government | 1,600 | 2.4% |
| Manufacturing | 1,500 | 4.9% |
| Mining, logging, and construction | 1,300 | 6.0% |
| Information | 700 | 8.2% |
| Other services | 300 | 1.9% |
| Financial activities | (500) | -2.6% |
Charleston, South Carolina, is a magnet for out-of-state renters, offering a blend of warm weather, affordable housing, and abundant job opportunities. With a cost-of-living index of 98.3, Charleston proves to be more budget-friendly than the national average. Additionally, Charleston provides significant cost savings in various aspects of life. When compared to nearby Chapel Hill, NC, Charleston offers cost reductions in areas such as transportation (2.8% average savings) and healthcare (11.8% average savings). Moreover, Charleston residents typically experience substantial savings of 28.9% on housing expenses compared to Chapel Hill. Currently, the median home price in Charleston is $430,200, showing a 2.1% decrease year-over-year. It’s worth noting that the average monthly mortgage payment of $3,084 in Charleston exceeds the average rent of $1,779, making renting a viable and financially attractive choice for residents. Charleston truly shines as a captivating option in the southeastern United States.
98.3
$3,084
97.2
116.0
90.7
$430,200
Despite nationwide cooling, investor enthusiasm for the Charleston apartment market remains unwavering. In Q3 2023, an impressive 7,780 housing units are currently in various stages of construction, with approximately 3,989 units scheduled for completion over the next four quarters. The notable influx of new construction, set to be largely absorbed by late 2024, raises minimal concerns. This upcoming inventory will be strategically dispersed across multiple submarkets, with Downtown/Mount Pleasant/Islands and Summerville/Northwest Charleston leading the way, contributing 1,497 and 1,675 units, respectively. On the whole, the occupancy rate in Charleston is expected to maintain stability, although there may be a slight softening in rent growth. Charleston’s favorable economic outlook signals enduring resilience and potential for expansion, painting a promising picture for the future.
