Charleston South Carolina

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Charleston Market Summary
The impact of condo conversions in the Charleston apartment market has lessened significantly from prior periods, with net completions once again in positive territory. For the six months ending February 2007, there were 341 units that converted to condos which was less than the 416 units of new construction that were added to the market over the same time period.

Development activity remains strong with 1,518 units under construction as of February 2007. The majority of these new units are located in the Summerville and Central submarkets. The development pipeline is especially strong with 3,383 units proposed which represents an increase of 1,513 units over the number of units proposed six months ago. These proposed units are distributed among the Goose Creek, Mount Pleasant, West Ashley and Summerville submarkets.

Despite an increase in supply of 75 units, there was a decline in absorption of (-404) units, and the combined effect was an increase in the vacancy rate from 7.6% in August 2006 to 9.6% as of February 2007. It should be noted that the vacancy rate is distorted by the renovation of one community and the cancelled condo conversion of a second community. When these are excluded the adjusted market vacancy improves to 8.6%.

Despite an increase in vacancy, same-store rental rates increased over the last six months by $14.78 or 2.0% to a monthly average rent of $744.
 

Market Data Information Source: © March, 2007 Real Data Aptindex