Market stabilization seems to be taking place across Columbia, South Carolina's multifamily sector, as construction slows down considerably — but that trend may not last.
Overall, units underway in the first quarter were 1,897, down from the 2,566 seen during the same period a year ago, according to a market report from Colliers. The development is concentrated Downtown, with 1,114 units under construction in the area. However, when that amount hits the market, this would expand the total inventory by 25.29 percent, which would be the largest amount poured into the urban core in over 25 years.
Furthermore, Colliers expects even more sites in Downtown to break ground in the coming quarter.
"Demand for downtown living is being driven by improvements to Columbia's downtown environment, stronger preferences for walkability and urban living, and a strong Central Business District office market that has seen vacancy plunge below pre-pandemic levels amidst strong performance," Colliers said.
One key multifamily development spot in Columbia has been North Richland thanks to its "rapid population growth." Also, the CRE brokerage refers to Columbia as "one of the fastest-growing large municipalities in South Carolina."
As far as other first quarter fundamentals go, the market overall looks steady. Deliveries surged to 777 units from 150 in the first quarter of 2025, likely having some effect on the occupancy rate dropping by 140 basis points to 89.50 percent. Yet, absorption remained positive at 204 units compared with 255 seen a year ago.
Also, rents accelerated to $1,332 per unit, up by $17 year-over-year.
Sixteenth Floor Residential Inc. made the largest buy in the first quarter, with a $61.5 million purchase in Outlying Lexington County. NorthRock Companies was next, paying $31.8 million for a Lake Murray property, followed by Fulton Peak Capital, spending $31 million for 100 Granby Crossing in West Columbia.
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