Staff Report
Published Oct. 2, 2009

Apartment vacancy rates in Charleston dropped to 11.1% in August after hitting a 15.3% high in February, according to a market research firm in Charlotte.

Real Data reported that Charleston’s market has recovered with record demand after bottoming out in the first part of the year. But it said that high unemployment numbers might temper growth in coming months.

“There are still over 2,500 units in the development pipeline,” Real Data said in its report, which was released this week, “but a large portion of the proposed units may remain undeveloped until there is significant growth in employment.”

Real Data publishes apartment reports for metro areas in the Carolinas, Tennessee, Florida and Virginia by soliciting information from every conventional apartment community with at least 50 units.

The apartment rental supply in the Charleston area has increased by 7% in the past year, according to Market Facts 2009, published by the Charleston Regional Business Journal. The new supply, coupled with the overall weak economy and subsequent weak demand for housing, led to the high vacancy rate, Market Facts said.

With the rising vacancies and increased competition from condominium rentals, rental rates for apartments declined to an average of $754 a month.