Fundamentals look, for the most part, stable in Columbia, South Carolina's multifamily sector — but construction is starting to pick up momentum.
In the fourth quarter, occupancy eased by 40 basis points year-over-year to 90.50 percent, according to a market report from Colliers. However, it appears top-tier space is in high demand in the market, with Class A multifamily product averaging 92.3 percent, outpacing the historical rate, according to the brokerage.
That came as supply increased to 498 units, from 345 at the end of 2024, with construction surging to 2,574 units from 1,592. The good news is that a big chunk of the recently underway product remains in lease-up, with concessions restricted to just a free month's rent.
"Downtown is the construction epicenter as renters seek lifestyle amenities with nearly 1,200 units active or imminent," Colliers said.
Absorption, while it declined to 304 units, from 422 — remained positive. Rent growth was modest, coming 1.5 percent year-over-year higher to reach $1,330.
Overall, despite an oversupply of lower-quality product, Colliers expects supply and demand to remain healthy for multifamily in South Carolina's capital.
"While an overabundance of Class C units points to stabilization at a lower occupancy rate, the market's stability through 2025 points to ongoing supply-and-demand balance through 2026," Colliers said.
The largest recent sale posted by Colliers in the market was a site at 1120 Ft. Congaree Trl. selling for $61.5 million in the West Columbia submarket. The next largest involved 401 Burnside Dr. and 103 Paces Brook Ave, selling for $32.2 million and $31.8 million, respectively.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.