Roofstock recently expanded its marketplace to Columbia, the capital of South Carolina and the state's second largest city.
High affordability continues to attract both renters and single-family rental (SFR) investors to the Columbia area, a southeastern metro where investors can find single-family rental homes with double-digit yields.
Read on for three things we like about the Columbia, S.C. real estate market.
Healthy rental demand
Two major military installations—Fort Jackson and McEntire Joint National Guard Station—along with jobs in the healthcare and education sectors, fuel local rental demand for Columbia properties, according to a recent Forbes report. Columbia is also home to the University of South Carolina, the largest university in the state.
Most recently, a 2018 report from Attom Data Solutions ranked the Columbia, S.C. metro area as the second best SFR growth market for 2018. The report identified 24 “SFR growth” counties where average wages grew over the past year and with potential 2018 annual gross rental yields of 10 percent or higher.
Columbia’s median SFR rents in April 2018 were $1,200 a month, but still affordable compared to the national average of $1,600 per month. Similarly, the median SFR home price of $135,000 in the Columbia metro in April 2018 was 82 percent less expensive than the U.S. median SFR price of $235,000.
"One of the more affordable places to buy a home is in the state capital. The median price in the Columbia market edged up 0.3 percent to $160,000 last year." - The Post & Courier
As an example of SFR affordability in the Columbia area, Roofstock has a 10-property portfolio listed on its marketplace at an average price of approximately $138,000 per property.
Higher rental yields
Gross median SFR yields in the Columbia metro are currently 10.7 percent, compared to the national gross median yield of 8.2 percent, according to Roofstock.
“Inexpensive single-family rentals make the Columbia region an attractive investment market for real estate, as rental yields are considerably higher than they are in more expensive coastal markets, such as the Bay Area and New York,” noted Roofstock CEO/co-founder Gary Beasley.
Other quick facts about Columbia, S.C.
- Columbia's economy is very diverse. Key industries and top employers are advanced manufacturing, healthcare, insurance information and technology, green energy production, transportation and logistics, and research/development.
- Columbia is one of the fastest growing metropolitan areas in the United States at 19% over 10 years.
- Columbia is nationally ranked among the top five cities for highway connectivity and is the only Southeastern city that has direct access by three interstates and indirect access by two additional interstates within 100 miles.
- The Columbia Metropolitan Airport (CAE), which is home to the UPS Southeast Regional Air Hub, provides excellent air shipping access.
- The Port of Charleston is located less than two hours away, and is the largest container port on the U.S. Southeast and Gulf coasts.
- Columbia is the 8th largest in the U.S. by cargo value.
Source: Columbia Department of Economic Development
Investing in Columbia, S.C. is easier than you think
Roofstock’s unique real-estate-as-a-service model makes it easy for investors to evaluate and purchase SFR homes online, allowing them to confidently invest in real estate remotely. In fact, the majority of investors who use Roofstock.com to invest in real estate are located more than 1,000 miles away from their primary residence.
Roofstock has hundreds of cash-flowing SFR homes available in 25 markets around the country, with the addition of Columbia. By year’s end, Roofstock expects to operate in more than 40 markets nationwide.