The strong drop in new deliveries is keeping fundamentals steady in Greenville-Spartanburg-Anderson. The region, which is recognized as South Carolina's largest metro area, saw new supply drop to 157 in the first quarter compared to the 797 units seen in the same period a year ago, according to a market report from Colliers.
This marks the lowest deliveries in the market seen since the second quarter of 2018. Also, while net absorption fell to 311 from 1,228 in the first quarter of 2025 — that amount still outpaced the new supply that came online. Demand is being concentrated along the I-85 corridor, where employment hubs are.
"Strong population growth in the Greenville-Anderson-Greer MSA, at 8.96%, continues to drive elevated demand for new multifamily product across the Greenville-Spartanburg market," Colliers wrote.
Another element that's driving renter demand is its affordability compared to owning in the market, according to Colliers.
Moreover, occupancy improved by 40 basis points year-over-year to 89.30 percent.
However, average monthly asking rents dropped to $1,361 per square foot, down $6 per square foot year-over-year. In terms of rents and occupancy, Downtown Greenville is standing out in the area, averaging $1,861 per unit and 92.80 percent, respectively. Additionally, Colliers expects occupancy to stay high in the area with just two projects planned currently through 2027.
Also, Spartanburg alone is another that hosts strong occupancy, averaging nearly a 90 percent rate with new supply continuing to get absorbed.
However, Colliers does warn that more deliveries could be coming to Greenville- Spartanburg-Anderson, with 2,567 units under construction at the end of the first quarter.
"With limited recent deliveries, the market has stabilized, but a wave of new supply is approaching as the pipeline prepares to accelerate," the CRE brokerage said.
Parks Hospitality Holdings made the largest first-quarter buy in the market, with its $58.1 million purchase of a 304-unit property at 1000 Oak Springs Dr. The next two largest come from Post Investment Group and Hamilton Point Investments, which made buys of $53.5 million and $46 million, respectively.
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