South Carolina real estate investment for 2023
By TOI Staff October 10, 2023 Update on : October 10, 2023
South Carolina is a famous market for affordable real estate investors. Located on the state’s Atlantic coast, Myrtle Beach real estate agents offer a variety of profitable investment opportunities, from luxury real estate in Charleston to affordable single-family homes and apartments in smaller communities. Founded in 1729 by sister state North Carolina, the state is a popular destination for retirees and first-time home buyers looking for a low cost of living.
The current state of the South Carolina real estate market
South Carolina is home to about 5 million people with a median annual household income of $53,000. The population continues to grow; it is among the five fastest-growing states in the country. South Carolina looks economically strong, with an unemployment rate of 3.4% at the start of 2022, with more than 16,000 new jobs created in July 2022 alone.
In addition, several major universities are in the state, including the University of South Carolina, Clemson University, and Trident Institute of Technology. There are also mountains and beaches, and beautiful landscapes. South Carolina is a famous market for real estate investors looking to take advantage of the state’s rapid growth and strengthening economy. Realtors in South Carolina can easily guide you through your real estate transaction.
Profitable investment in real estate
The key to a profitable investment is finding a local real estate agent to help investors find the best properties. It is essential to seek the help of experienced local real estate agents who specialize in investment properties with confidence. With their help, you can find properties that meet your goals and budget. While going forward with your first investment purchase may seem intimidating, buying real estate can be an excellent way to earn a passive, steady income. Determining the best market to invest in depends on your goals. Remember, renting a successful property is different from buying and maintaining a great home.
Some investors focus on increasing the value of purchased real estate to generate income from the growth of invested investment capital. In contrast, others prefer stable income streams from rental properties. We’ve outlined the best investment markets for several strategies below. Use a rental property calculator to evaluate individual properties. Looking at statewide data to find the best South Carolina real estate investment markets is essential. Profitability is assessed by property value growth, average income, affordability, and the average cost of renting and buying a home.
Charleston: Great value options
From luxury beachfront homes to downtown condos and apartments, Charleston and the surrounding areas offer investors a wide variety of real estate options. Charleston has a strong and diverse economy with growing employment in tourism, I.T., and transportation. According to the National Association of Realtors, the city was recently named one of the top 10 markets expected to thrive in a post-coronavirus environment. Charleston is a key tourist hub, but it has also benefited from an influx of new permanent residents. According to the latest U.S. Census, the population has grown by more than 30% over the last ten years. The city’s median home price of $422,836 is more expensive than the state’s median home price of $298,085, making it a good choice for new investors. For those on a budget, there might be better cities.
Greenville: Best value for money
With home prices up more than 20% over the past year, the thriving city of Greenville offers exciting real estate investment opportunities. Median home prices are over $307,000, with room for further growth. The active development of housing prices is partly related to the influx of new residents. Over the past decade, Greenville’s population has grown by 21% to more than 500,000. Greenville also benefits from the development of various areas of the economy; therefore, rent continues to rise. Average current rents have increased 18% over the past year to more than $850 per month. Rising property prices and rents have made Greenville a good city for long-term investors.
Hilton Head Island: Perfect for short-term rentals
Hilton Head Island has one of the most expensive real estate markets in South Carolina and is a popular beach destination for retirees and seasonal residents. This popular resort has the highest rental yields, especially in the spring and summer. Real estate agents report that investors consistently achieve a 9-10% investment return. The increased demand for seasonal rentals makes Hilton Head Island a good choice for short-term rentals and Airbnb investors. However, entering the market requires a significant capital investment, so you must decide whether the high cost of entry is worth it.
Colombia: Ideal for rapid growth
Columbia is the state capital, the second largest city, and home to the University of South Carolina, the state’s largest public university. Like Charleston, Columbia has a diverse economy with large employers providing employment to the city’s residents. Columbia is one of the cheapest investment markets in the state. The median home price of just over $240,000 has risen more than 20% over the past year and is expected to increase enormously. Recent data shows Colombia has below-average housing prices and high real estate growth rates. These factors make Colombia a lucrative market for many investors.
Greenwood: Low-cost investment opportunities
Greenwood is a city with a population of 22,545 in eastern South Carolina. Greenwood is just a few miles from the lake, which includes 212 miles and 11,000 acres of shoreline. Popular activities in the surrounding area include hiking, boating, and recreational fishing. With a median home price of just over $158,000, Greenwood offers investors an attractive initial real estate investment and high returns. The region has a strong economy. Attractions, parks, and numerous entertainment facilities are located here. If you’re looking for an affordable real estate market with more potential and less competition, Greenwood is worth a look.
How to find valuable real estate in South Carolina?
You can always increase future profits by buying real estate at a favorable price for you. Here are some rules on how to do it right.
Rule 1. Install investment software
The real estate market is increasingly affected by technological development. A simple Google search will bring up hundreds of listings from sites like Zillow and Realtor.com. DealMachine software gives you a key advantage over the average buyer. This state-of-the-art software effectively helps South Carolina investors find and track homes for sale at great prices and quickly contact owners to complete the purchase. DealMachine offers a 7-day free trial for those wanting to check it out. Necessary technologies that can be useful for real estate investors include:
- Flipperforce: The Flipperforce app helps investors analyze real estate values and calculate the maximum price for real estate before buying
- Stessa: Stessa software makes it easy to track the performance and financial health of all your properties in one convenient application. Creates regular real estate profitability reports
- Neighborhood Scout: One of the leading market analysis tools in the country, Neighborhood Scout provides an in-depth analysis of crime statistics, employment data, and rankings for each area
Rule 2. Invest in foreclosures, auctions, and off-market real estate
With interest rates rising, the number of distressed properties and foreclosures is slowly returning to pre-epidemic levels. This means that a wide range of non-market opportunities is available to investors willing to give time and money for profit. When you don’t have the time or skills to do home renovations, it’s worth turning to the best local contractors to help get these things done.
Rule 3. Partnering with Investor-Friendly Agents
Working with the best agents who are experts in your local market is a proven way to find great deals and negotiate like a pro. An excellent real estate agent knows local trends and areas to target and avoid, and they also know how to find offers before they reach other buyers. In addition, a top real estate agent can inform you of laws and regulations that may affect your decision about which property to invest in. Working with a competent real estate agent means you have the best local experts and the best chance of a successful investment.
Critical concepts for buying profitable real estate
Using data from the U.S. Census Bureau and Zillow, median home prices, median household income, median home ownership costs, and median rents were compiled to assess housing market trends in cities across the country. Then, each city’s growth rate, rent-to-income ratio, and rent-to-mortgage ratio are evaluated to determine which cities are the most profitable and affordable for real estate investors. To determine each state’s best real estate markets, cities with the highest overall scores were ranked based on non-quantifiable information such as economic diversity, quality of life, and destination appeal. Real estate values in South Carolina have risen steadily over the past decade, with rates accelerating from 2020. However, growth rates differ from city to city, which must be considered when choosing a specific real estate object. The best real estate investment depends on your goals. Selling a distressed and renovated property is the fastest way to make money; however, long-term rentals can provide an opportunity to earn a steady income. The best way to become a successful real estate investor is to identify your key priorities and purchase a property that meets all those needs. Charleston is a great market for real estate investment in South Carolina. Other cities also offer attractive markets depending on your investment strategy.Read more: South Carolina real estate investment for 2023