Strong Occupancy And Room For Rent Growth
- Charleston ranks #3 nationally in quarterly revenue growth (+4.2%), per MPF Research.
- Inventory of 40,000 units. An occupancy of 91.9% and average rent of $858/month ($0.88/SF).
- Strongest quarterly absorption pace in 5 years.
- Strong recent rental increases, especially for communities in infill neighborhoods.
- Slowing job creation is a concern, but recent data suggests re-kindled growth.
- Temporary over-supply in pockets as development continues.
- Burgeoning dining/hospitality scene downtown, prompting high-end construction rumors.
- Rising homebuyer interest rates will help retain renters.
2013 Mid-Year Market Recap
The Charleston apartment market is stable, growing, and primed for mid- and long-term rental increases, especially in infill locations because of its strong, diverse economy and significant barriers to entry. Short-term, there are pockets of over-development, particularly in Mount Pleasant, but continued job growth and thus absorption will ease these concerns.
Jobs create apartment demand and the growth of jobs had slowed in Charleston in recent months. For instance, from August 2011 to August 2012, MPF reports 10,200 jobs were created, but from July 2012 to June 2013, the local economy grew by only 3,300 jobs, and over half of these (1,900) were in June 2013 alone. This job creation was the likely catalyst to a late surge in apartment demand and rental increases as reported by MPF.
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