Demand for housing created by public sector employment has led to the recent addition of Columbia, South Carolina as one of the 23 markets served by online real estate investment management firm HomeUnion.
"The continued growth and stability in Columbia's labor, due to the presence of active and retired military personal as well as the civilian staff that supports the bases, combine to provide a solid economic base for SFR (single-family residential) investments," Don Ganguly, CEO of HomeUnion, said. "This solid labor base with its strong rental demand supports the high cash flow yields that our investors are seeking as an alternative to the bond and equity markets."
In the last year, 1,600 public sector jobs were added in Columbia.
Vacancy rates for single-family rental properties in Columbia are projected to reach 6.7 percent at the end of the year, down 80 basis points from 2014. Rental prices are projected to grow 3.5 percent to $1,142 per month.
HomeUnion has recruited Lauren Taylor to serve as the real estate professional in charge of Columbia's HomeUnion offerings. When establishing a new market, the company hires a real estate professional who has knowledge of the area.
Properties in HomeUnion, which has been in operation since May 2014, typically range in price from $65,000 to $225,000. The properties offer annual returns to investors from 4.5 percent to 14 percent, depending on leverage. The company's headquarters are in Irvine, California.