CoStar Market Insights: Increased Activity is Sustained by Population Development That is More Than Four Times the National Average
The Latitude at the Commons, a 288-unit apartment complex in Myrtle Beach, South Carolina.
With more than 14 million visitors a year, Myrtle Beach, South Carolina, is regularly one of America’s most crowded beaches. But it’s not simply tourist keeping the metropolitan area resilient– its retirees are triggering multifamily rents to soar.
Not just are more retired people relocating to the Atlantic Coast community, however those same retired people are opting to lease at a higher rate. Though homeownership is still the primary methods of housing in Myrtle Beach, tenants aged 60 and older have actually increased by more than 30 percent since 2013, far surpassing alternative age cohorts. This increase in need, coupled with fairly couple of shipments this cycle, has permitted property managers to raise rent.
Despite Myrtle Beach’s area along the Atlantic Coast’s Grand Hair, it has maintained a status as a fairly budget-friendly place to live, as the typical household earnings has to do with $10,000 below the nationwide average, or 18 percent. But with the marketplace publishing higher than typical development rates across the board, median home earnings has actually also been on the rise.
Cumulatively, lease development in Myrtle Beach has grown more than 32 percent because the start of the cycle, and more than 20 percent of this growth took place after 2013. For viewpoint, other popular coastal markets like Hilton Head and Charleston have actually seen cumulative lease development of 29 percent and 19 percent, respectively, given that 2013. Hilton Head had experienced comparable lease growth to Myrtle Beach in 2016.
Furthermore, multifamily stock has actually only increased by about 15 percent since 2013, developing chance for proprietors to benefit from the surge in demand by raising their rents. Once again, compare that to Hilton Head and Charleston, where inventories have increased in the exact same time frame by about 28 percent and 37 percent, respectively.
With more than 1,300 domestic systems under building in Myrtle Beach, however, it is not likely that Myrtle Beach will continue to see development rise for much longer, as increased competitors corrects for these walkings in prices.
CoStar Market Insights supplies a photo of recent realty patterns. The CoStar Market Analytics team keeps an eye on industrial and multifamily real estate throughout 390 city areas, with a granular understanding of the tasks, gamers and economic trends that move these markets.