During the pandemic, the Greater Charleston area became a relocation destination. Nearly 24,700 people moved to the area causing average effective rent to increase 46.4 percent from 2Q20 to 3Q23. Demand peaked in 2021 reaching 5,384 net move-ins, setting a new record for the metro. Charleston has continued to grow since.
Boasting one of the highest annual job growth rates in the nation, the local Charleston economy expanded 4.5 percent from August 2022 to August 2023, according to the Bureau of Labor Statistics. Specifically, the professional and business sector spearheaded the growth with the addition of 5,000 jobs during that period.
Charleston’s business friendly atmosphere has caught the eye of multiple companies, and many have set their sights on expanding within the area. Thus far in 2023, eighteen companies have announced plans to either relocate to Charleston or expand their existing presence.
Most notably, Fortune 500 science and technology company, Leidos, announced in July that it is investing $31.7 million to establish a new South Carolina operation in Charleston County. Over time, 170 new jobs will be created.
Looking ahead to 2024, Greater Charleston is projected to have exceptional net absorption and deliveries. About 2,000 more units are forecast to come online in 2024 compared to the record-setting year in 2021, when 3,717 units were delivered. The increase in inventory is underpinned by the economic growth the metro has been experiencing. Multifamily complex, Founders Yard Apartments, is the largest development slated for completion in 2024, adding 341 units to the West Ashley submarket.
Though the Founders Yard Apartments project will deliver the most units, the majority of construction is taking place in the Downtown/Mount Pleasant submarket, with over 1,200 units projected to come online in 2024.
– Berkadia Research