| Charleston, South Carolina
The Charleston metropolitan area’s economy
supports a diverse group of industries. In 2001, 126 firms
made capital investments totaling $228.6 million and
created 2,084 jobs. The Port of Charleston, the fourth
largest containerized cargo port in the Nation, is a
source of thousands of area jobs. Charleston, however, is probably best known for the oceanfront
location, history, and charm that make it a multibillion-dollar tourist destination.
The Charleston metropolitan area’s population
increased 8.3 percent to 549,033 between 1990 and
2000. The area’s population is projected to experience a 1.2-percent annual rate of growth, reaching
583,300 by 2005.
Employment in the Charleston metropolitan area
increased from 229,864 in 1996 to 262,065 in 2001,
or 2.7 percent annually. The unemployment rate
declined from 5.5 to 3.7 percent over the same 5-year period. In the 12 months ending November
2002, total employment averaged 271,263.
In 2002 the Charleston metropolitan area had the
highest home sales volume in the State. The South
Carolina Association of REALTORS® reported that
8,812 homes were sold in the Charleston area during
2002, a 13.7-percent increase over 2001. The average
price of a home rose 6.9 percent to $218,000. Demand for new homes was also very strong. For 2002,
4,922 single-family permits were issued in the area,
a 27.8-percent increase over 2001. Given the low
mortgage rates, increasing demand, and relatively
strong local economy, single-family construction is
expected to remain strong.
In recent years the Charleston area rental market
has been very active. However, even with strong
absorption, the market remains somewhat soft. For
the past 3 years Carolinas Real Data has reported
an overall apartment vacancy rate of 8 to 9 percent
in the Charleston area. Over the past 18 months
the number of new units entering the market has
approximately equaled the number of new units
leased. The most recent report from Carolinas Real
Data indicates that 43 percent of the apartment
developments in the area were offering concessions,
up from 34 percent 6 months earlier. The number of
multifamily units authorized by building permits in
the metropolitan area peaked at 1,976 units in 1998
before tapering off to 768 in 2001. In 2002 permits
were issued for 940 multifamily units. James Island,
Summerville, and West Ashley continue to attract
developer interest, but the market should begin to
tighten with a continued decline in units in the
pipeline.
|
