Charleston Metro Chamber releases 2022 Economic Forecast

November 17, 2022

The Charleston Metro Chamber presented the 2022 Regional Economic Forecast at its 31st Annual Economic Outlook Conference held Wednesday, November 16 at Trident Technical College. The forecast for the Charleston region is a partnership project between the Charleston Metro Chamber, the Charleston Regional Development Alliance and the College of Charleston.

Dr. Mark Witte (pictured), Professor of Economics at the College of Charleston, presented data from key economic indicators that drive the region’s economy and predictions for those indicators for 2022 and 2023. Dr. Harry Broadman, Partner and Chair of Emerging Markets for BRG LLC, reported on the national economic forecast as keynote speaker.

The Charleston metro is uniquely positioned to maintain a strong economy despite national challenges. The region’s challenges continue to focus around housing attainability and ongoing demand for skilled positions.

Highlights from the 2022 Economic Forecast:

  • Local labor force is expected to grow by 3% in 2022 and another 2.1% in 2023, as employment grows by 4% in 2022 and 1.8% in 2023.
  • In 2023, it is forecasted that consumers will spend more on needs than wants. Our region should see a slight increase in retail sales due to increased prices – as they do not show signs of dropping.
  • Rising interest rates have slowed residential construction permits and 2023 is expected to have even lower single-family residential construction and multi-family permits.
  • Fewer houses are selling, while costs continue to rise. Median home sales price will have increased by 12% by the end of this year and will increase another 1.4% in 2023.
  • Accommodations are seeing an increase in pricing, while occupancy rates will stay stable. By end of year, RevPar will have increased by 12%. In 2023, it is forecasted to increase another 2.1%.
  • The Charleston International Airport has seen a full recovery since COVID-19 with total passengers reaching record highs. 2022 will show a growth of 25.7% and is forecasted to grow another 4% in 2023.
  • The South Carolina Ports Authority expects an increase of 1% in TEUs in 2022, following a large 19.1% increase in 2021. Another 1% increase in TEUs is forecasted for 2023.

“The Charleston metro is uniquely positioned to maintain a strong economy despite national challenges,” said Dr. Mark Witte, Professor of Economics at the College of Charleston. “However, we will continue to see challenges in creating attainable housing and need to focus on developing skilled talent locally to meet employer demand.”

The Annual Economic Forecast for the Charleston region is a partnership project between the Charleston Metro Chamber, the Charleston Regional Development Alliance and the College of Charleston. The forecast is based upon historical data tracked and collected by the Charleston Regional Development Alliance from the sources listed throughout the forecast and provided to the College of Charleston School of Business. An econometric forecasting model is used to develop a projection for each indicator. The model also takes into account national indicators.

The key to the success of the forecasting project has been the Economic Outlook Board, comprised of local business leaders from every major economic sector. Their collective insight provides information that may not be picked up in a statistical analysis of the data. The Board often has information on future developments that no statistical model would capture. Additionally, the data is often reported in a lag – the Economic Outlook Board reviews the statistical forecast and adds the “real-time, real-knowledge” insight into the actual performance of the economy.