The “insane” real estate market in Spartanburg is expected to continue into 2022, with local agents noting the scarce inventory of homes for sale in the region. Inventory is down by about 26% compared to last year, with demand for homes in Spartanburg driven by people moving to the area from out of state.
Spartanburg is listed as one of the top 10 “hidden gem” housing markets in 2022 by the National Association of REALTORS, with a stronger appreciation in home prices relative to other real estate markets.
Located in upstate South Carolina, Spartanburg is known for its Southern charm, highly skilled workforce, cultural and leisure opportunities, and attractive and safe neighborhoods. Local business leaders believe Spartanburg is thriving with opportunity and has set the pace as a leader in attracting foreign direct investment and economic development.
Let’s take a look at what’s attracting investors to Spartanburg, South Carolina.
>>Explore Roofstock's Spartanburg properties.
Population growth
The population of Spartanburg County grew by more than 15% between 2010 and 2020, making the county the fifth most populous in South Carolina. The fastest growing areas in Spartanburg are outside of the city proper, including the suburban areas of Reidville, Duncan, Holly Springs, and Lake Bowen.
Key population stats:
- Spartanburg is home to nearly 328,000 people in the city and almost 1.5 million residents in the Greenville-Spartanburg-Anderson combined statistical area (CSA).
- Annual population growth rate in Spartanburg County is 1.71% year over year.
- Spartanburg County added 43,690 new residents between 2010 and 2020, according to the U.S. Census Bureau.
- By 2040, Spartanburg County is projected to add more than 60,000 new residents, and the region is proactively planning for the future.
- The city is the second largest in the CSA, and Spartanburg County is part of the 10-county region known as “The Upstate.”
Job market
Jobs are one reason population growth in Spartanburg has been strong and steady. As an article on GoUpstate observes, “Spartanburg is alive and thriving,” with growth in the metro area bringing hope and opportunity.
The manufacturing, trade, and transportation sectors are driving the job market in Spartanburg, pushing the unemployment rate down to just 3.3%.
Key employment stats:
- Gross domestic product (GDP) of Spartanburg, SC, is nearly $16.5 billion, according to the Federal Reserve Bank of St. Louis, and has grown by nearly 53% over the last 10 years.
- The unemployment rate in Spartanburg is 2.6% as of April 2022, based on the most recent data from the Bureau of Labor Statistics (BLS).
- From 2010 to 2019, nearly 200 new or expanding companies created over 14,800 new jobs in Spartanburg County, with $6.9 billion in capital investments.
- Economic growth in Spartanburg is centered along the Highway 290 corridor southwest of the city, between I-26 and I-585.
- Current and recent major projects in Spartanburg County include Adidas and Dollar Tree distribution facilities, an Amazon fulfillment center, and BMW’s plant expansion.
- Spartanburg began as an automotive hub, has used its economic strength to evolve into a diversified manufacturing center, and boasts the highest per capita foreign investment in the state.
- Target industries in Spartanburg are automotive, advanced materials, distribution, energy, biosciences, and aerospace.
- The largest employers in and around Spartanburg include BMW of North America, ABM Onsite Services, Spartanburg Medical Group, Spartanburg County, and DAA Draexlmaier Automotive of America.
- Some of the Fortune 500 companies located in Spartanburg are BMW Manufacturing Company, Michelin, Toray Carbon Fibers, Advance America, and Denny’s.
- Major colleges and universities in Spartanburg include the University of South Carolina Upstate, Spartanburg Methodist College, Wofford College, and Spartanburg Community College.
- Over 87% of Spartanburg residents have a high school degree or higher, while more than 27% hold a bachelor’s degree or advanced degree.
- Spartanburg is strategically located 1.5 hours from Charlotte and 2.5 hours from Atlanta, near the intersection of I-85 and I-26.
- Transportation infrastructure in Spartanburg includes 2 interstate highways, rail and truck lines, the SC Inland Port-Greer and the nearby Port of Charleston, and the Greenville-Spartanburg International Airport.
Real estate market
Spartanburg, South Carolina, is listed as one of the 2022 Housing Market Hidden Gems by the National Association of REALTORS. According to the report, an under-the-radar housing market like Spartanburg is expected to experience stronger price appreciation relative to other markets in 2022.
The most recent report from South Carolina REALTORS® (May 2022) says that median home sales prices in Spartanburg increased by 19.1% year over year, with buyers receiving the full listing price. Homes listed for sale in Spartanburg are going under contract an average of 10 days after hitting the market, selling 37.5% faster than one year ago.
Key market stats:
- The Zillow Home Value Index (ZHVI) for Spartanburg is $202,232 through May 31, 2022.
- Home values in Spartanburg have increased by 25.4% over the last year.
- Over the past 5 years, home values in Spartanburg have increased by nearly 72%.
- The median sales price for a home in Spartanburg is $260,000, based on the most recent report from South Carolina REALTORS®.
- Sales prices for homes in Spartanburg have increased by 19.1% year over year.
- Average days on market for a home in Spartanburg is 10.
- The Spartanburg housing market is rated as “very competitive” by Redfin, with some homes getting multiple offers and hot homes going from listing to pending in about 2 days.
- Of the 14 neighborhoods in Spartanburg, Realtor.com lists Converse Heights as the most expensive, with median listing prices of $425,000.
- The most affordable neighborhood in which to buy a home is Northside-Saxon, where the median listing price is $75,000.
Attractive renters’ market
Local real estate agents describe the housing market as “insane” and don’t anticipate that prices or demand will go down any time soon. As WYFF News 4 recently reported, there are more buyers than ever before, and there are few, if any, listings.
When would-be homebuyers can’t find a place to purchase, they turn to renting instead, which increases the demand for good rental property. Over the past 12 months, rent prices for 3-bedroom homes in Spartanburg have soared by 20%, and over 40% of homes in the metro area are occupied by renters.
Key market stats:
- The median rent in Spartanburg is $1,595 per month for a 3-bedroom home, according to the most recent research from Zumper (June 2022).
- Rents in Spartanburg have increased by 28% year over year.
- Over the past 3 years, rents for a 3-bedroom home in Spartanburg have increased by about 38%.
- Renter-occupied households in Spartanburg make up 44% of the total occupied housing units in the metropolitan area, according to RENTCafé.
- The most affordable Spartanburg neighborhoods for renters include Converse Heights, Fernwood, and North Converse Heights, where average rents are less than $980 per month.
- The most expensive Spartanburg neighborhoods for renters include Spartan Mills, Beaumont Mill Village, and East Pearl-Wofford College, where average rents range between $1,110 and $1,210 per month.
Historic price changes & housing affordability
Two of the many data points real estate investors use to choose a good market for rental property are the historic change in housing prices and housing affordability.
An upward trend in home prices over the long term may indicate future appreciation in property values. In real estate markets where home prices are less affordable relative to median household incomes, the demand for rental property may be greater, and vice versa. That’s because when people can’t afford to buy a home, they rent instead.
Each month, Freddie Mac releases up-to-date data on the change in home prices for all markets across the U.S. The most recent Home Price Index report from Freddie Mac (FMHPI) for the Spartanburg, SC, metropolitan statistical area (MSA) shows:
- April 2017 HPI: 127.2
- April 2022 HPI: 226.8
- Five-year change in home prices: 78.3%
- One-year change in home prices: 25.0%
- Monthly change in home prices: 2.0%
Housing affordability is another important metric that rental property investors use to analyze the present and potential future demand for renting property versus buying a home. The housing affordability index (HAI) of a market compares median family income to the median price of an existing single-family home.
The higher a market’s affordability index is above 100, the more affordable single-family homes are to purchase. On the other hand, the more expensive it is to buy a house, the more attractive an area may be for renters.
Spartanburg County, South Carolina, has a housing affordability index of 179 as of July 1, 2021. That means that home prices in Spartanburg are relatively affordable for families with median incomes. Yet despite having affordable home prices, over 40% of the households in Spartanburg are occupied by renters.
Quality of life
World-class universities, plenty of outdoor activities, and an abundance of restaurants and breweries—along with being a pet-friendly city—are some of the many reasons Spartanburg is ranked as the best place to live in South Carolina.
Key quality of life stats:
- Spartanburg is ranked ahead of Greenville, Charleston, and Columbia as the best place to live in South Carolina.
- U.S. News & World Report also lists Spartanburg among the best places, fastest-growing places, and cheapest places to live.
- The cost of living in Spartanburg is 12.3% below the national average, and over 90% cheaper than living in a major urban area like San Francisco or New York City.
- Spartanburg receives an “A-” grade from Niche.com, with high marks for public schools, housing, and nightlife.
- There are plenty of fun things to do in Spartanburg, including arts and culture, outdoor adventures, and romantic getaways.
- BMW’s Performance Driving School in Spartanburg has helped the city earn its place in America’s car culture.
- The climate in Spartanburg is humid subtropical, with long, hot summers and cool, mild winters.
- Spartanburg is home to the NFL’s Carolina Panthers training camp on the Wofford College campus.
- Spartanburg Medical Center is ranked as one of the best hospitals in South Carolina by U.S. News & World Report.
Ready to invest in the Spartanburg housing market? If you haven't already done so, create your free Roofstock account and set up alerts. We'll notify you when we have a Spartanburg investment property that matches your search criteria.
