Charleston is becoming the new “hip housing market” in South Carolina, fueled by an influx of buyers looking for a laid-back lifestyle, according to The Wall Street Journal.
Located on the Charleston Harbor, along the Atlantic Ocean, Charleston has also been ranked as one of the 7 best cash flow markets in the country by BiggerPockets. Strong in-migration, a robust job market, and a diverse economy are 3 of the many reasons why the demand for rental property in Charleston keeps growing.
Home values in Charleston have increased by nearly 26% year over year, with median rents for 3-bedroom homes now at $2,273 per month. Rising home prices in Charleston are one reason why many people choose to rent rather than own. Renter-occupied households account for 42% of the occupied housing units in the Charleston metropolitan area.
Here are 15 areas of Charleston in which to consider buying investment property, including some places where nearly half of residents rent their homes.
Key takeaways
- Charleston is home to 150,227 people in the city and over 802,000 residents in the metropolitan area.
- Metropolitan Charleston consists of 3 counties: Charleston, Berkeley, and Dorchester.
- The largest cities and towns in the Charleston region include North Charleston, Mount Pleasant, and Summerville.
- Home values in Charleston increased by 25.8% last year, with the median sale price now $459,000.
- Renters occupy 42% of the housing units in the Charleston metropolitan area.
>>Explore Roofstock's Charleston properties.
Why invest in Charleston, South Carolina?
Population growth and a robust job market are 2 reasons why the housing market in Charleston, SC, is so strong.
Charleston recently became the largest city in South Carolina, adding more than 30,000 new residents since 2010 for a population growth rate of over 25%. Since April 2020, Charleston has gained nearly 54,000 jobs, with the unemployment rate down to just 2.9% (Bureau of Labor Statistics as of December 2021).
Economic milestones in Charleston over the past decade include establishment of 6 Boeing facilities, growth of the medical sector supported by the Medical University of South Carolina, and a growing information technology and software sector that has significantly increased the number of tech companies and local high-tech job growth.
Home values in Charleston increased by nearly 26% last year, according to Zillow. Over 40% of households in the metro area are occupied by renters, and median rents for 3-bedroom rentals in Charleston are $2,273 per month, based on the most recent research from Zumper (February 2022).
15 great areas in Charleston, SC, for investment properties
Investors thinking about buying rental property in South Carolina may find a window of opportunity in Charleston.
Redfin ranks the Charleston housing market as “somewhat competitive” as of January 2022. Average homes are selling for about 1% below the list price and going under contract 46 days after being listed, although some homes are still getting multiple offers and selling faster.
Charleston is home to dozens of neighborhoods, cities, and small towns in the metropolitan area. To make your search for investment property in Charleston a bit easier, here are 15 areas worth taking a closer look at. Data at the neighborhood-level comes from Redfin, Realtor.com, and Niche.com.
Charleston
Charleston is situated along the South Carolina coastline on Charleston Harbor and has a dense urban feel. The median sales price of a home in Charleston is $459,000, and over 40% of residents in Charleston rent their homes:
- Population: 150,227
- Median sale price: $459,000
- Change in sales price (year over year): 22.4%
- Days on market: 51
- Median rent: $1,257
- Renter-occupied households: 44%
- Median household income: $68,438
- ZIP codes: 29401, 29407, 29413, 29425
North Charleston
Located a few minutes north of the city via I-26, North Charleston is a suburb with more renters than homeowners. North Charleston has a dense suburban feel, and home prices are relatively affordable compared to other parts of the metropolitan area:
- Population: 111,501
- Median sale price: $299,000
- Change in sales price (year over year): 24.6%
- Days on market: 49
- Median rent: $1,051
- Renter-occupied households: 55%
- Median household income: $45,510
- ZIP codes: 29404, 29406, 29418, 29485
Mount Pleasant
Located immediately northeast of Charleston, Mount Pleasant is ranked as the best place to live in the metro area by Niche.com. The suburb of Mount Pleasant is bordered by the Wando River and Sullivan’s Island and has a dense suburban feel, with a lot of dining and entertainment options:
- Population: 86,982
- Median sale price: $645,000
- Change in sales price (year over year): 16.5%
- Days on market: 45
- Median rent: $1,629
- Renter-occupied households: 28%
- Median household income: $103,232
- ZIP codes: 29429, 29466, 29482, 29492
Isle of Palms
Isle of Palms is located immediately northeast of Sullivan’s Island, along the Atlantic Ocean. The median home sale price in Isle of Palms is nearly $1.3 million, and prices have increased by nearly 40% year over year:
- Population: 4,360
- Median sale price: $1,282,500
- Change in sales price (year over year): 38.4%
- Days on market: 60
- Median rent: $1,994
- Renter-occupied households: 14%
- Median household income: $122,228
- ZIP code: 29451
Hanahan
Hanahan is located 16 miles inland, northwest of Charleston via I-26. Hanahan is ranked as the best place to live in Berkeley County by Niche.com, and more than one in 3 residents rent their homes:
- Population: 24,353
- Median sale price: $340,000
- Change in sales price (year over year): 7.9%
- Days on market: 65
- Median rent: $1,084
- Renter-occupied households: 34%
- Median household income: $70,043
- ZIP codes: 29406, 29410
Sullivan’s Island
Sullivan’s Island is another suburb of Charleston where median home prices are above $1 million. The town is located along the Atlantic coast at the entrance to Charleston Harbor, has a rural feel, and has good options for dining and entertainment:
- Population: 2,203
- Median sale price: $1,520,000
- Sale-to-list price ratio: 95.3%
- Days on market: 83
- Median rent: $2,167
- Renter-occupied households: 17%
- Median household income: $136,528
- ZIP codes: 29451, 29482
Goose Creek
Goose Creek is located 18 miles inland, northwest of Charleston along I-26, near Hanahan. The area has a sparse suburban feel, and median home prices are relatively affordable compared to the rest of the metropolitan area, even after rising more than 30% year over year:
- Population: 41,978
- Median sale price: $300,000
- Change in sales price (year over year): 32.7%
- Days on market: 48
- Median rent: $1,307
- Renter-occupied households: 29%
- Median household income: $68,893
- ZIP codes: 29410, 29445, 29486, 29492
Sangaree
Sangaree is about an hour northwest of Charleston along I-26, near the suburban towns of Lincolnville and Summerville. Sangaree has a rural feel and is ranked as one of the best 2 places to buy a house in the Charleston area by Niche.com:
- Population: 7,840
- Median sale price: $255,000
- Change in sales price (year over year): 27.5%
- Days on market: 56
- Median rent: $1,273
- Renter-occupied households: 24%
- Median household income: $62,024
- ZIP code: 29486
Summerville
The suburb of Summerville is located across I-26 from Sangaree, about an hour northwest of Charleston. Summerville has a dense suburban feel, and more than one in 3 residents rent their homes:
- Population: 53,037
- Median sale price: $310,000
- Change in sales price (year over year): 20.9%
- Days on market: 46
- Median rent: $1,108
- Renter-occupied households: 36%
- Median household income: $59,180
- ZIP codes: 29456, 29483, 29485, 29486
James Island
James Island is ranked as the best place to buy a house in the Charleston area by Niche.com. Located about 10 minutes south of the city, near the mouth of the Charleston Harbor, James Island has a rural feel and good options for dining and entertainment:
- Population: 12,076
- Median sale price: $455,000
- Change in sales price (year over year): 13.8%
- Days on market: 47
- Median rent: $1,374
- Renter-occupied households: 17%
- Median household income: $81,674
- ZIP code: 29412
Moncks Corner
Located a little over an hour north of Charleston, Moncks Corner is another suburb where more than one in 3 residents rent their homes. Moncks Corner has a sparse suburban feel and is within a short walk of Lake Moultrie:
- Population: 10,743
- Median sale price: $338,000
- Change in sales price (year over year): 26.2%
- Days on market: 46
- Median rent: $915
- Renter-occupied households: 35%
- Median household income: $65,540
- ZIP code: 29461
Ladson
Ladson is located about an hour north of Charleston, near Ladson and Lincolnville, and just northwest of Trident Medical Center and Charleston Southern University. Ladson has a suburban-rural feel and relatively affordable home prices for the Charleston real estate market:
- Population: 15,539
- Median sale price: $250,000
- Change in sales price (year over year): 10.3%
- Days on market: 42
- Median rent: $1,216
- Renter-occupied households: 27%
- Median household income: $63,808
- ZIP codes: 29456, 29486
Ravenel
The suburb of Ravenel is 45 minutes west of Charleston via Highway 17. Ravenel has a suburban rural feel, and more than one in 3 residents rent their homes:
- Population: 2,691
- Median sale price: $431,000
- Sale-to-list price ratio: 97.9%
- Days on market: 43
- Median rent: $820
- Renter-occupied households: 35%
- Median household income: $56,250
- ZIP code: 29470
Folly Beach
Folly Beach is located 12 miles south of Charleston along the Atlantic Ocean. Although Folly Beach has one of the highest median home prices in the metropolitan area, the suburb is also popular with renters:
- Population: 2,660
- Median sale price: $1,162,000
- Change in sales price (year over year): 34.3%
- Days on market: 63
- Median rent: $1,046
- Renter-occupied households: 41%
- Median household income: $78,708
- ZIP codes: 29412, 29422, 29439
Lincolnville
Nearly half of the residents of the small suburban town of Lincolnville rent their homes. Located less than an hour northwest of Charleston, near Ladson and Summerville, Lincolnville has a suburban-rural feel:
- Population: 2,133
- Median sale price: $355,000
- Change in sales price (year over year): 13.8%
- Days on market: 79
- Median rent: $775
- Renter-occupied households: 45%
- Median household income: $22,717
- ZIP code: 29485
>>Explore Roofstock's Charleston properties.
