Charleston, South Carolina's multifamily sector is seeing mostly positives so far in 2025. In the first half, the market absorbed 2,768 units in total, according to a report from Colliers. That marks the highest demand seen since 2021. In the second quarter alone, net absorption was 1,680 units, up from the 1,393 posted in the previous 12 months. The largest demand was seen in the Summerville/Goose Creek submarket during the second quarter, with 493 units.
"Quarterly absorption surpassed deliveries for the first time since 2022 as a shrinking pipeline may be challenged to meet long-term demand without sharp rent increases," Colliers said.
In fact, asking rents were only up by $2 per square foot year-over-year to reach $1,848.
Despite strong demand, the market does have some headwinds. Occupancy plunged by 137 basis points to 87.20 percent. That's impacting investment activity.
"Lingering occupancy challenges continue to suppress sales transaction volume somewhat," Colliers admitted.
But still, some large sales took place. This included 288-unit property, 1005 Sonoran Cir, going for $58.5 million and 1660 Old Trolley Rd., trading for $24 million. Nothing else broke eight figures, as the next closest was a 40-unit asset in West Ashley, trading for $8.8 million.
Meanwhile, Colliers does list some positives heading into the second half. One, occupancy has been trending upward in recent months, up from the 86.70 percent posted in the first quarter and two, further expected action from the Federal Reserve might provide a boost to Charleston, South Carolina's multifamily sector.
"Potential cap rate decompression unlocked by second-half rate cuts may accelerate activity into 2026," Colliers suggested.
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