We have a very stable real estate market. Columbia is the capital and the largest city in South Carolina, so we have a lot of industry, our state government is based here, and we have the largest university in the state. There are also two military bases. So, all these things create a situation where a lot of people are looking for housing, especially temporary housing. The demand for rentals in this area is high, and quite stable. We don’t see those big jumps and drops like some other markets do.
The cost of housing is relatively low. When you look at how much you would have to spend to buy a piece of real estate and what you could rent it for, the cap rate and the numbers you can receive on that investment are generally better than the rest of the nation, especially when you look at housing costs. In this market, the average home price is a lot lower than the national average.
Our population is growing. In the middle of South Carolina, we are on pace to grow by almost six percent in the next five years. That will drive the demand and the need that Columbia tenants have for rental housing.
Rents are increasing. With the influx of Columbia renters in the market and our inventory not as deep as we would like on the rental side, we can increase rent. Apartment complexes and property management companies are seeing a three to five percent increase annually on rent prices. That turns into a better return for you.
Hopefully, you can see why Columbia is a great market to invest in. If you have any questions, please contact us at Turner Properties. We’d be happy to tell you everything we can about our Columbia property management services.