The multifamily market in Charleston, South Carolina, has continued to shift in order to keep up with the area’s changing demographics.
Throughout 2014, there was strong activity, and industry experts estimate that momentum will continue through 2015. Rent growth and occupancy rates have continued to increase, showing that the region has healthy market conditions. As occupancy continues to rise and new units are constructed, the supply may out-pace future demand.
Some of the changes include a rising retiree population and an increase in new jobs in the area. Empty-nesters and millennials are ideal target populations, as these renters will shape the future of the multifamily market through new developments to meet the new residents’ needs.
To keep up with the changes, construction activity has reached its highest levels. Residential growth is driving suburban developments, and rental rates have continued to escalate as well.
Experts expect the demand for multifamily homes to remain strong. Occupancy is estimated to stay high even though there will soon be more supply to meet the demands. Unfortunately, short-term absorption may not be able to keep up with deliveries of the units.
Further details are available in the Q2 2015 Charleston Multifamily Market Report online.