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North Charleston: Rising Home Values and Shifting Ownership in an Aerospace Hub
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
North Charleston, the third-largest city in South Carolina, has experienced significant demographic and housing market changes over the past decade. This vibrant city, known for its aerospace industry and cultural diversity, has seen fluctuations in homeownership rates, average home prices, and average rent prices. The overall trend shows a gradual increase in homeownership, alongside substantial growth in both average home values and average rent prices.
The relationship between homeownership percentages and average home prices in North Charleston reveals interesting patterns. In 2013, the homeownership rate was 48%, with the average home price at $109,827. As average home prices steadily increased, reaching $180,776 by 2019, the homeownership rate slightly decreased to 47%. However, a significant shift occurred in 2020 when the homeownership rate jumped to 51% despite the average home price rising to $195,095. This trend continued into 2021, with homeownership peaking at 54% while average home prices surged to $227,137. By 2022, there was a correction, with homeownership returning to 47% as average home prices reached $270,214.
Federal interest rates have played a crucial role in shaping homeownership trends in North Charleston. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. This low-interest environment likely contributed to the increased homeownership rates observed in 2020 and 2021, as it made mortgage financing more accessible. The subsequent rise in interest rates to 1.68% in 2022 coincided with the decline in homeownership back to 47%, illustrating the inverse relationship between interest rates and homeownership.
Renter percentages and average rent prices in North Charleston have also shown notable trends. In 2013, 52% of residents were renters, with an average rent of $854. As the renter percentage increased to 58% in 2014, average rent rose to $922. The renter population remained relatively stable around 53-57% from 2015 to 2019, while average rent prices steadily increased, reaching $1,093 by 2019. Interestingly, as the renter percentage decreased to 49% in 2020 and 46% in 2021, average rent continued to climb, reaching $1,154 and $1,215 respectively. By 2022, the renter percentage rebounded to 53%, with average rent hitting $1,291.
In 2023 and 2024, North Charleston's housing market continued its upward trajectory. The average home price in 2023 was $289,012, representing a 7% increase from 2022. In 2024, the average home price further rose to $304,078, a 5.2% increase from the previous year. Notably, federal interest rates also saw significant increases, reaching 5.02% in 2023 and 5.33% in 2024, levels not seen since before the 2008 financial crisis.
Looking ahead, predictive models suggest that average home prices in North Charleston will continue to rise over the next five years, albeit at a more moderate pace. The average home price is projected to reach approximately $350,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $1,500 per month within the same timeframe.
In summary, North Charleston's housing market has demonstrated resilience and growth, with average home prices more than doubling from 2013 to 2024. The city has experienced fluctuations in homeownership rates, influenced by both market prices and federal interest rates. Rent prices have shown consistent growth, reflecting the city's increasing desirability and population growth. As North Charleston continues to develop, these housing trends will play a crucial role in shaping the city's future demographic and economic landscape.
