Charleston Rental Rates Climbing

By October 27, 2015 September 29th, 2016 Around Charleston

2096 Amenity Park Drive, Mount Pleasant, SC 29466 (MLS# 15020003)

Charleston Rental Rates Rising, Among Top 5 Biggest Increases in the Nation

It’s a great time to be an investor in the Charleston rental market, to say the least. As new businesses continue to pour money into the Charleston economy, demand for housing has sky rocketed which has lead to a lowered supply of available homes for sale on the market. In turn, this has caused some would-be-home-buyers to turn to short term rentals as a solution. However, with the influx of demand for those rentals, landlords have been able to raise rental rates and still fill vacancies quickly. In fact, RentRange released a report last week that ranked the top 25 Metropolitan Statistical Areas with the largest rental rate increases and Charleston was among them.

This new report analyzed the average rental rate increases for single family homes in quarter 3 of last year compared to quarter 3 of 2015. North Charleston ranked as the 5th highest for year over year rental rate increases with a 16.5% jump. The number one city with the highest increase was Cape Coral in Fort Myers, Florida. According to the press release:

Cities in the South and West generally had the greatest increases in home rental rates, while cities in the Midwest and Northeast experienced smaller increases. California and Florida were particularly strong, accounting for seven of the top 10 markets on the list. However, when looking at yield, markets in the Central U.S. and Midwest often generated higher yields than many markets in California and Florida.

Here’s a look at the top 10 cities with the biggest average rental rate increases:

1 Cape Coral-Fort Myers FL 23.6%
2 Sacramento-Arden-Arcade-Roseville CA 17.6%
3 North Port-Bradenton-Sarasota FL 17.2%
4 San Francisco-Oakland-Fremont CA 17.0%
5 Charleston-North Charleston SC 16.5%
6 Los Angeles-Long Beach-Santa Ana CA 16.3%
7 San Jose-Sunnyvale-Santa Clara CA 16.1%
8 Denver-Aurora CO 14.6%
9 Dallas-Fort Worth-Arlington TX 14.0%
10 San Diego-Carlsbad-San Marcos CA 13.6%

To view the full 25 city list on the press release visit the RentRange Press Release.

It’s been no surprise that the rental market in Charleston has exploded. Earlier this year SmartAsset ranked South Carolina cities by how fast homes were sold and 7 of the top 10 cities were located in the Charleston metro area. Furthermore, huge employers like Mercedes, Boeing and Volvo have all made announcements recently that they will be expanding or building key facilities in the north area creating thousands of jobs and over a billion dollars in investments. These announcements in combination with favorable market conditions, positive press by travel magazines and low interest rates have all revealed Charleston as a beautiful city with a bright future.

If you’re wondering how much your home is worth visit our sister site: Charleston Listing for a free valuation based on current market conditions specific to Charleston, not a broad national average like Zillow or Trulia. Or contact me directly to discuss anything real estate; buying, selling or any questions you might have about the Charleston real estate market.
Matt Anderson

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