Colliers Charleston Multifamily Report: Demand strong as construction pipeline shrinks
September 11, 2024
Commercial Real Estate Research & Forecast Report
Q2 2024 Charleston Multifamily
Market Highlights
Charleston’s multifamily housing demand continues to catch up to the region’s most recent wave of construction as absorption outpaced deliveries for the first time in eight quarters. Despite adding 14.82% of total inventory within the past three years, occupancy is on the upswing as new migrants to the region and residents pushed out of downtown housing by high costs seek housing in rapidly growing outlying areas.
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Key Takeaways
- New entrants to the region primarily driving demand
- Construction pipeline slowing rapidly as rents rise
- Sales transaction volumes increasing as recent wave of deliveries stabilize
Summary
The construction pipeline will thin drastically by the end of 2024 with 3,634 units expected to deliver between Q3 and Q4, while developers are stockpiling land for future needs. A rapid slowdown of construction starts driven by interest rate uncertainty, coupled with relentless demand for the Charleston area’s amenities, is likely to push occupancy and rents even higher once newly delivered properties stabilize.
About Colliers
Colliers | South Carolina is the largest full-service commercial real estate firm in South Carolina with 66 licensed real estate professionals covering the state with locations in Charleston, Columbia, Greenville and Spartanburg. Colliers is an Accredited Management Organization (AMO) through the Institute of Real Estate Management (IREM) and is the largest manager of commercial real estate properties in South Carolina with a portfolio of over 23 million square feet of office, industrial, retail and healthcare properties. Colliers’ staff hold the most professional designations of any firm in South Carolina. Colliers | South Carolina’s partner, LCK, provides project management services for new facilities and renovations across South Carolina.
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 68 countries, our 22,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. With annual revenues of $4.4 billion and $96 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors and our people. Learn more at corporate.colliers.com, X @Colliers or LinkedIn.
