Staff Report
Published Feb. 6, 2012

A new report released by Colliers International anticipates an influx of supply in multi-family housing units in conjunction with improvements to the local job market and demand, absorption and rent growth in the apartment market.

Apartment inventory in the Charleston area is congregated largely in Summerville and West Ashley, accounting for 53% of the inventory for the Charleston area.

Comparing submarkets, Mount Pleasant apartment renters are facing the highest rents and the lowest availability. With 3,045 total apartment units in Mount Pleasant, and a 3.6% vacancy rate, the average renter can expect to pay $1,074 per month.

North Charleston apartment seekers have a wider array of apartments from which to choose and at the lowest rates in the area. With an 8.9% vacancy rate, renters in North Charleston can expect to pay just under $700 per month.

The Colliers report compared the Charleston market to comparable cities throughout the Southeast and found vacancy rates to be healthy and likely to spur an increase in construction.

Charleston has the fourth lowest vacancy rate, at 6.4% overall, behind Wilmington, N.C., Savannah, Ga., Roanoke, Va., and Norfolk-Virginia Beach, Va.

New construction slated for the area is concentrated in Mount Pleasant. A total of 498 units are expected to be delivered in the latter half of 2012. The proposed construction of 13 communities is also underway with 3,479 total units. About 42% of the proposed units are slated for Mount Pleasant with 984 units proposed in Summerville.

Colliers predicts the apartment rental market to remain stable through 2013 and rent growth to increase by about 4%.