Why Invest in the Rental Market in Charleston?
- The Charleston-North Charleston region presents a unique set of opportunities making it one of the strongest Rental Investment Markets in the US.
- Evaluation of the Rental Investment Opportunity in Charleston focused on the following key factors:
1. Rental Market
2. Real Estate Market
3. Regional Economy
Rental Market
- Charleston Ranked as one of the top seven best cash flow markets (Biggerpockets)
- Potential Gross Rental Yields of nearly 10% (Roofstock.com)
- Rents in Charleston have increased by 15% year-over-year (Roofstock.com)
- High demand to move to Charleston creates a consistent imbalance between demand for housing and supply.
- Charleston Region needs about 7,500 new housing units to keep up with population growth but hasn’t reached that level of construction since 2006 (Charleston Regional Business Journal)
- 48% of the households in Charleston are renter-occupied (Rentcafe)
- Charleston is one of the best markets for renters in the US – receiving high ratings for activity in the marketplace, affordability, and quality of life (Wallethub.com)
Real Estate Market
- Charleston ranked #8 Hottest Housing Market 2023 by US News & World Report’s list of hottest housing markets in the US.
- Buy-and-Hold investors should note that Charleston Housing Market projected to remain in the top 10 for the next 3-5 years (Charleston Regional Business Journal)
- Charleston made the List of the fastest growing cities in the US in 2022-2023 (US News and World Report). Population of Charleston is forecast to grow 25% in the next 10 years.
- Housing Affordability Index (HAI) for Charleston is 147 – which is a good measure for a high demand area like Charleston (SouthCarolina.hometownlocator)
Regional Economy
- GDP in Charleston-North Charleston area has grown by over 60% in the last 10 years to $50.7B (Fed. Reserve Bank St. Louis)
- Unemployment is just 2.9% (US Bureau of Labor Statistics)
- Leading industries include aerospace, automotive, info tech, life sciences and logistics along with large public sector employers Joint Base Charleston military facility and Medical University of South Carolina (Charlesetoncountydevelopment.org).
- Between 2015-2020, high tech employment in the metro area soared by nearly 24%, compared to 9% nationwide (The Centersquare.com)
- Last Year Median Household Incomes increased 9.68% (US Bureau of Labor Statistics)
- 4th Largest Port in US (Charlestoncountydevelopment.org).
