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Charleston SC Real Estate Update - 2024


Comprehensive Real Estate Report: Charleston, SC


Executive Summary

Charleston, South Carolina, is experiencing a dynamic shift in its real estate landscape, marked by burgeoning zip codes, evolving crime rates, ambitious economic development plans, and significant demographic changes. This report delves into these critical aspects to provide a holistic view of Charleston's real estate market, offering valuable insights for potential investors, homebuyers, and policymakers.


1. Popular and Fast-Growing Zip Codes

Charleston's real estate market is characterized by a diverse array of ZIP codes, each with its unique growth trajectory. Notably, the ZIP codes with the fastest-growing rent prices, as reported by Stacker using Zillow data, include 29420 and 29418 in North Charleston, 29466 and 29464 in Mount Pleasant, and 29455 on Johns Island (Live5News.com, 2022). These areas have seen a significant uptick in rental rates, indicating a surge in demand and potential for future growth.


Moreover, the fastest-growing cities in South Carolina for 2024, as per Saturday Night Science's analysis of the Census's American Community Survey, include Bluffton, Hardeeville, and Fort Mill (HomeSnacks.com). While not all within the immediate Charleston area, their growth can have a ripple effect on the surrounding regions, including Charleston's own 29483 in Summerville and 29063 in Irmo, which top the list for rapidly increasing rent prices.


More neighborhoods and zip codes information are here


2. Crime Rate and Trend

The crime landscape in Charleston has shown a promising trend of reduction. According to The Post and Courier, gun violence did not leave Charleston untouched in 2023, but the area has seen a general decline in crime rates from the historic highs during the COVID-19 pandemic (PostandCourier.com). North Charleston, in particular, has witnessed a decrease in murders from 36 in 2021 to 29 in 2023. This positive trend is indicative of effective law enforcement strategies and community engagement.


Furthermore, the chance of being a victim of violent crime in Charleston is 1 in 227, with a rate of 4 per 1,000 inhabitants, while property crime stands at a rate of 22 per 1,000 inhabitants (MikeandLauraTravel.com). These figures, while not negligible, suggest a relatively stable environment when compared to national averages.


3. Economy and Development Plans

Charleston's economic roadmap, One Region, is a strategic plan designed to guide the metro area's growth over the next decade. It emphasizes six action areas: affordability, infrastructure, and quality of place, which includes traffic, broadband access, and the housing market (Live5News.com, 2023). This plan underscores the region's commitment to sustainable growth and economic resilience.


The South Carolina Department of Transportation's announcement of the next phase of its $2 billion infrastructure project further cements the state's dedication to improving connectivity and accessibility (CharlestonBusiness.com). Such large-scale investments are likely to bolster the real estate market by enhancing the overall appeal of the region.


Additionally, Charleston County Economic Development is actively working to attract new business, support existing industry, and improve the business climate. With more than $6.9 billion in capital investment and over 39,000 jobs created, Charleston County is frequently ranked among the top in the state for economic activity (CharlestonCountyDevelopment.org).


4. Demographic and Population Growth Information

Charleston's demographic profile is evolving rapidly, with significant population growth in certain areas. Bluffton, for instance, has seen a staggering 173.3% growth since 2010, while Hardeeville's population has increased by 169.6% (HomeSnacks.com). These figures reflect a broader trend of people moving to South Carolina for its favorable living conditions and economic opportunities.


The city of Charleston itself has been recognized as one of the "Fastest-Growing Places in the U.S. in 2022-2023," according to U.S. News & World Report, which measures net migration and population growth over the past five years (ABCNews4.com). This influx of residents is a testament to the area's attractiveness and potential for further real estate development.


5. Business Incentives in Charleston, SC

Charleston's business environment is characterized by a supportive tax and incentive structure that enables companies to minimize operating costs and maximize return on investment. The region offers a variety of incentives that make it an attractive location for businesses:


  • Low to No-Cost Training
    Companies in Charleston can benefit from workforce recruiting and training programs available to qualifying companies. These programs are designed to enhance the skills of the workforce and ensure that employees meet the specific needs of their employers (CRDA, n.d.).

  • Competitive Incentives
    The state of South Carolina offers a range of incentives to reduce or even eliminate corporate income taxes. Additionally, there are numerous local and state sales tax exemptions that further reduce the cost of doing business in Charleston (CRDA, n.d.).

  • Tax Credits
    New and expanding companies can take advantage of tax credits that provide significant tax advantages, further encouraging business growth and expansion in the region (CRDA, n.d.).

  • Statutory and Discretionary Incentives
    Charleston County provides statutory incentives that companies can claim directly when filing state corporate income taxes. These include property tax abatement, sales tax exemptions, job tax credits, corporate headquarters credit, and research & development credit. Discretionary incentives, which are negotiated with Charleston County and the state, depend on the capital investment, hiring, and payroll involved in new projects or expansions. Businesses may qualify for Fee-in-lieu of taxes (FILOT) or Job Development Credits (Charleston County Economic Development, n.d.).

6. Job Growth and Employment Information

  • Employment Statistics
    As of December 2023, South Carolina had nearly 2.3 jobs for every resident jobseeker, a ratio significantly higher than the national average of 1.4. This indicates a robust job market and a high demand for labor in the state (CNN, 2024).

  • Workforce Development
    The state has strategically addressed workforce challenges through its network of technical colleges and workforce development programs. These institutions are adapting to generational and technological shifts by offering a variety of classes and increasing apprenticeship opportunities (CNN, 2024).

  • Labor Market Dynamics
    The Charleston region boasts a growing pool of over 400,000 skilled workers, with a civilian workforce that grew three times faster than the U.S. average from 2017-2022. The education and workforce training system in Charleston continues to produce technically-skilled workers in fields such as engineering and information technology (CRDA, n.d.).

  • Unemployment Rates
    South Carolina's unemployment rate was 3% as of December, showcasing a strong recovery from the pandemic's peak unemployment rate of 11.7% in April 2020. The state's rapid reopening and status as a "drive-to state" contributed to a quicker economic recovery compared to the national average (CNN, 2024).

7. Major Employers and New Business Movements


  • Existing Major Employers
    Charleston's economy is supported by a diverse range of industries, including aerospace, automotive, information technology, life sciences, and logistics. The region is home to multinational corporations and fast-growing startups that leverage the skilled workforce and competitive business environment (CRDA, n.d.).

  • Recent Business Relocations and Expansions
    Several companies have recently announced plans to establish or expand their operations in Charleston County, contributing to job creation and economic growth:
    • Ignite Digital Services: Plans to establish headquarters with a $966,426 investment, creating 135 new jobs.
    • Defense Engineering Services (DES): Expansion with a $2.5 million investment, creating 45 new jobs.
    • Neal Brothers Charleston, Inc.: Expansion with a $9.48 million investment, creating 10 new jobs in the first year.
    • Interloop: Expansion with a $100,000 investment, creating 32 new jobs over five years.
    • MOONDOG Animation Studio: Growth with a $90,000 investment, creating 20 new jobs in five years.
    • IronLink Logistics: Establishing operations with a $16.45 million investment, creating 250 new jobs.
    • Carpenters Woodworks and Restoration: Expansion with a $1.54 million investment, creating 20 new jobs (Charleston County Economic Development, n.d.).


8. Large Residential and Commercial Development Projects

  • Battery Park and Navy Yard Charleston
    One of the most ambitious projects in North Charleston is the development of Battery Park and Navy Yard Charleston. This 50-acre riverfront project aims to create a central business district with over 23 acres dedicated to public spaces and parks. It is expected to house more than 1,400 residential units and a variety of commercial uses. The Navy Yard Charleston plan is a redevelopment project on the northern end of the former naval base, projected to encompass approximately 3.5 million square feet of commercial and residential space, including over 2,600 residential units across 85 acres. These combined projects, totaling around 135 acres, are set to bring housing, jobs, businesses, and more to the area (CHStoday, 2023).

  • Mixed-Use Developments in Historic Districts
    In downtown Charleston's historic districts, two mixed-use buildings are in the works. The first, located at the old Days Inn site near Meeting Street and Horlbeck Alley, will feature a new hotel with retail and residential space. The second, situated on King Street near the I-26 overpass, will consist of two buildings with hotel units, residential, and retail space. Both projects are currently undergoing the City’s Architectural Review process (Live5News, 2023).

9. New Construction Communities and Major Builders

  • New Construction Homes and Communities
    The Charleston area is seeing a high demand for new homes, with limited land available for new construction. Builders often delay listing properties until permits are obtained, which means there is more inventory available for those who wish to build from the ground up. Newly finished move-in-ready homes, sites under construction with 2-4 months remaining, and proposed construction homes with a build time of 5 months or more are available for potential homeowners (Search for Charleston Real Estate, 2023).

  • Toll Brothers Communities
    Toll Brothers, a luxury home builder, offers a variety of communities in the Charleston area. These communities are designed to fit various lifestyles and include luxury smart home features and limited warranties. Toll Brothers at Verdier Pointe, Riverbend by Toll Brothers, and Forest Edge by Toll Brothers are some of the communities that provide new construction home options in the surrounding Charleston area (Toll Brothers, 2023).

10. Real Estate Listing Inventory and Price Trend Information

  • Market Conditions and Price Trends
    The Charleston Trident Association of Realtors® reported that 1,122 homes sold in February at a median price of $257,500. This reflects a 12% decrease in sales volume compared to the previous year and a 7% rise in median sale price. Inventory has declined by nearly 11% over the last 12-month period, with 4,917 homes listed as “active” for sale in the Charleston Trident Multiple Listing Service (CTMLS) at the end of February (Charleston Trident Association of Realtors®, 2023).

  • Housing Market Forecast for 2024
    The South Carolina housing market is expected to continue its growth into 2024. Charleston, in particular, is forecasted to experience a growth of 0.4% by April 30, 2024, with a slight dip to 1.6% by January 31, 2025. Despite the minor decrease, the overall trend remains positive, signaling stability and potential for real estate development in the area (Norada Real Estate, 2023).

  • Recent Sales and Inventory Data
    The Charleston housing market is somewhat competitive, with homes receiving an average of 2 offers and selling in around 62 days. The median sale price of a home in Charleston was $571K last month, up 6.7% since last year. The median sale price per square foot in Charleston is $305, up 5.5% since last year (Redfin, 2023).

Conclusion

Charleston, SC, presents a compelling case for real estate investment and development. The region's fast-growing zip codes, declining crime rates, robust economic and development plans, and significant demographic shifts paint a picture of a city on the rise. Stakeholders in the real estate market would do well to consider Charleston's potential for growth, stability, and prosperity.


Charleston, SC, presents a compelling case for businesses looking to relocate or expand. The region's business-friendly incentives, robust job market, and diverse industrial base create an environment conducive to economic growth and development. With a strategic focus on workforce training and a proactive approach to business attraction, Charleston is poised to continue its trajectory as a leading destination for businesses in the Southeast.


Charleston's real estate market is robust, with a mix of large-scale developments and new construction communities that cater to a diverse range of preferences and lifestyles. The market trends indicate a steady increase in median sale prices, despite a slight decrease in sales volume and inventory. The city's growth, coupled with its historical charm and modern amenities, continues to attract residents and investors alike. As Charleston expands, it maintains a balance between preserving its heritage and embracing new opportunities for development.


To see more Charleston neighborhoods, click here


References

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