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%|
|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%|
|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.
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