Charleston’s housing market is expected to be one of the top 10 outperforming markets in the country over the next three to five years, based on housing affordability, consistent job growth and domestic migration, among other factors.
Charleston was identified by the National Association of Realtors, which listed the markets in alphabetical order in its report (.pdf). Charlotte and Raleigh-Durham-Chapel Hill, N.C., were also listed. (See the full list of all metro areas online.)
“Some markets are clearly positioned for exceptional longer-term performance due to their relative housing affordability combined with solid local economic expansion,” Lawrence Yun, the association’s chief economist, said in a news release. “Drawing new residents from other states will also further stimulate housing demand in these markets, but this will create upward price pressures as well, especially if demand is not met by increasing supply.”
According to the report, 45% of recent movers who are renters in Charleston can afford to buy a typical home in the region, assuming 20% down payment. The median value of homes that recent movers bought was $281,400, and the Lowcountry saw 121,584 recent movers. The study defines recent movers as people who moved in 2018.
The association said the largest share of people moved to Charleston from other parts of the state. Columbia sent 2,220 people to the Lowcountry, while the Greenville-Anderson-Mauldin area sent 1,789 people. An additional 1,667 people came from the New York-Newark-Jersey City area, and 1,364 came from the Charlotte-Concord-Gastonia area. A total of 16% of the total population are recent movers, according to the study; they have a median age of 29.
“We check all the boxes that make Charleston a top performer — but we have to keep market sustainability top of mind,” Charleston Trident Association of Realtors CEO Wil Riley said in a news release. “We’re well-positioned for more growth on many fronts — jobs, population, and our economy is strong; but if we do not focus on developing smart growth strategies, we’ll price those who are coming here for those jobs out of the market.”