Our home prices. 🏡
Every year, somewhere around two million wildebeest, zebra, + gazelle move in unison across Africa in an awe-inspiring spectacle known as the Great Wildebeest Migration.
Here in the Lowcountry, we have our own version. It’s called I-26 east during peak homebuying season.
While the influx of newcomers doesn’t necessarily rank among the most majestic sights on planet Earth, the city itself does continually earn the title of Best City in the U.S., at least in the eyes of Travel + Leisure readers. Although, after five years of consecutive wins, these kind of lists are becoming less of an achievement + more of a burden to some residents, who see the publicity as an invitation for newcomers, and, therefore, less available housing. At one point, the rapid growth of out-of-towners even inspired the now-defunct website, GoBackToOhio.com. Ouch.
34 people move here every day— 3x the national average. And that only accounts for the people who move here. Tourism is on the rise, + as more visitors choose Charleston as their vacation destination, more homeowners are inclined to convert their properties into short-term rental spaces (a.k.a. AirBNBs), further shrinking the number of rentals available to full-time residents.
Why don’t we just build more houses?
It’s a simple question, but a rather complicated answer. One part of the answer being that we are building more houses– just not fast enough.
While the rise in supply lags behind the skyrocketing demand, housing prices only continue to increase. Between 2010 + 2016, the average monthly rent in the region increased by a jaw-dropping 49%. In that same time, median household income went up by only 12%— and despite the high cost-of-living, the region’s average salary is still lower than the national average.
The problem only seems to be getting worse. Between Feb. 2017 + Jan. 2018, the median home price in the Charleston-Trident region grew by 5%, (at $252,938), while inventory fell by 13.1%.
Prices are up because we can’t build up
There’s a reason we have the “Charleston single” and not the “Charleston high-rise apartment building.” At last count, there are around 5,000 single family homes downtown, + if you consider how many people want to live downtown, that’s not a lot. But, there’s only so much land, and unlike other cities– we can’t keep building up.
That’s because there are height limits on buildings in certain districts— a rule that was imposed in order to maintain the Holy City’s quaint, historical charm, but also, for better or for worse, makes the construction of high-volume apartment buildings a challenge.
Suburbanization stalled by strained infrastructure
The rising costs on the peninsula are pushing more low- to mid-income families + individuals out of downtown– but some suburbs are struggling just as much to accommodate growth. With roads already overwhelmed by traffic, current residents aren’t all thrilled with the idea of tacking on extra minutes to their commute to accommodate the additional congestion when a new, 600-unit luxury condo complex moves in next door. The pushback even prompted a proposal, albeit unsuccessful, to enact a six-month moratorium on residential development on Johns Island. James Island recently ended a similar moratorium + Mount Pleasant is in the middle of its own.
So, now what?
Before you pack up your bags + move to Columbia (👋 COLAtoday), consider this: Charleston is one of the fastest growing metros in the U.S., so there are going to be growing pains.
We plan to cover the issue of housing affordability– and other growth issues– a lot. Look out for more from us in the near-future on what city leaders + local nonprofits are doing to combat this problem.
In the meantime, tell us which parts of this topic you want to learn more about– Low-income housing? Congested roadways? Send an email to hello@thechstoday.com with your suggestions.
I’ve been letting my cat live with me rent-free since he was adopted, but if rent keeps going up, he’s gonna have to start chipping in.
—Jen
