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Rising Home Values and Ownership in North Myrtle Beach: A Coastal City's Robust Real Estate Market
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 Myrtle Beach, South Carolina (zip code 29582) is a coastal city renowned for its beautiful beaches and thriving tourism industry. Over the past decade, the city has witnessed significant changes in homeownership rates, average home prices, and average rent prices. The overall trend indicates an increase in homeownership, rising average home prices, and fluctuating average rent prices.
The homeownership rate in North Myrtle Beach has shown a steady increase from 2013 to 2022. In 2013, 73% of residents were homeowners, and this figure rose to 81% by 2022. This upward trend in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $186,913, which rose dramatically to $370,596 by 2022, representing a 98% increase over nine years. This trend suggests that despite rising home prices, more residents are choosing to buy rather than rent.
The relationship between federal interest rates and homeownership rates in North Myrtle Beach is notable. From 2013 to 2020, interest rates remained relatively low, ranging from 0.11% to 2.16%. During this period, homeownership rates increased from 73% to 76%. As interest rates began to rise more significantly in 2022 to 1.68%, homeownership continued to increase, reaching 81%. This suggests that other factors, such as the desirability of the area and potential investment opportunities, may have outweighed the impact of rising interest rates on homeownership decisions.
The percentage of renters in North Myrtle Beach has decreased from 27% in 2013 to 19% in 2022. Despite this decrease, average rent prices have generally increased over the same period. In 2013, the average rent was $1,084, which rose to $1,150 by 2022, an increase of about 6%. However, there were fluctuations in between, with the highest average rent of $1,230 recorded in 2021. The decrease in the percentage of renters, coupled with the overall increase in rent prices, may indicate a tightening rental market with fewer available units driving up prices.
In 2023, the average home price in North Myrtle Beach reached $394,277, and in 2024, it further increased to $401,609. This continued upward trend in home prices occurs despite the significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates have not yet appeared to dampen the local housing market's growth, suggesting strong demand for homes in the area.
Looking ahead, based on the historical data and current trends, we can predict that average home prices in North Myrtle Beach will continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices are also likely to increase, driven by the limited supply of rental properties and the growing population. The city's population has grown from 19,319 in 2010 to 27,292 in 2022, which may continue to put pressure on both the housing and rental markets.
In summary, North Myrtle Beach has experienced a significant shift towards homeownership, with rising average home prices and a decreasing percentage of renters. Despite increasing federal interest rates, the housing market has remained strong, reflecting the city's attractiveness as a place to live and invest. The rental market, while shrinking in terms of the percentage of renters, has seen generally increasing average rent prices. These trends suggest a dynamic and evolving real estate market in North Myrtle Beach, driven by population growth and the city's desirable coastal location.
