Charleston’s Growing Population and the Impact on Its Economy
As the charming city of Charleston continues to thrive, there’s a lot to talk about. Did you know that roughly 34 new residents call Charleston home each day? According to the Charleston Metro Chamber of Commerce’s Annual Economic Forecast, this growth is causing a ripple effect across the local economy—from housing demands to job opportunities and everything in between. Pretty exciting stuff!
A Housing Crunch in Paradise
With more people moving in, it’s no surprise that the demand for housing is on the rise too. The forecast reveals that most residential properties currently available are starter homes, and the number of building permits remains steady. Interestingly, about 60% of homeowners in Charleston have locked in mortgage rates of 4% or less. That’s great for them, but it also means many folks are likely to stay put, leaving a limited number of homes for newcomers.
Mark Witte, an economics professor at the College of Charleston, mentioned that achieving affordable housing is a “critical challenge” for the region. Since 2018, the average home sales price has skyrocketed by nearly 80%. The combination of high mortgage interest rates—now hovering around 7%—and rising building costs continues to keep home prices elevated. It turns out the Charleston housing market is pretty competitive, especially when you compare building permit numbers with larger cities, like Boston, which has a population four times that of Charleston.
What’s With the Inflation?
Another fascinating nugget from the forecast discussed the current state of inflation. While it seems that many of the COVID-related price hikes have started to stabilize, the baseline prices for goods have risen by nearly 35%. Tatiana Bailey, the founder and executive director of Data-Driven Economic Strategies, noted that the days of low prices seem behind us. Many consumers are feeling the pinch, especially when it comes to everyday expenses. You’ve probably walked into a grocery store lately and thought, “How did my cart cost so much?”
Job Market Boom
Now for some good news: Charleston’s job market is booming! Between January 2020 and September 2024, the area created more jobs than the whole state of Illinois, which has a much larger population. The forecast predicts that Charleston will maintain a healthy growth rate of 2% in both the labor force and employment through the next year.
Interestingly, the local unemployment rate sits around 4%, which is just slightly above pre-pandemic levels. Bailey emphasized that for every job opening in Charleston, there’s roughly one person available for the position. However, this sometimes comes with a caveat: many of those job seekers may lack the skills that employers are seeking.
Hospitality on the Rise
While housing and inflation are hot topics, the hospitality industry in Charleston is also making waves. Hotels in the area are enjoying high occupancy rates, with projections showing a 1.6% increase in revenue per available room over the next year. The types of guests are shifting towards more luxury and upscale experiences, which is bolstering local spending and, in turn, funding community projects.
The Path Ahead
Despite challenges, Charleston’s economic future looks promising. With a projected additional $14 billion in income for residents from 2025 to 2035, exciting times are indeed ahead. Additionally, educational institutions like the College of Charleston are stepping up, offering certifications that align with the growing manufacturing sector in South Carolina, which has seen a 17% growth.
In conclusion, as Charleston continues to charm newcomers and boost its economy, residents and city planners will need to keep an eye on housing, inflation, and job opportunities. The future is bright, and there’s no denying that Charleston is a gem worth investing in.
