Debunking the Housing Market in Greenville
Located on the edge of the blue ridge mountains, Greenville is one of the largest cosmopolitan cities in South Carolina. Approximately two years ago, the city had deteriorated so much that vacant houses were the norm. With the rise of better economic times and increased housing in the city, the former textile town has regained its glow. If you are wondering what is the state of the housing market in Greenville, keep reading. Here, we take a look at both the demand and supply indicators of this housing market.
The Demand Indicators
Trends of Unemployment
Up until 2020, unemployment in Greenville was always below the national average. However, the pandemic worsened this state in 2020, leading to an approximate 2% rise in the previous levels. Being a busy city in the U.S., the economy of this city was able to recover at a quick rate. Consequently, this led to a reduction of the unemployment rate to 4.6%. With less unemployment, more people are bound to make an income and therefore afford rented housing.
The Median Home Price
In the United States of America, Greenville's housing market is one of the most affordable. While some might argue that the median price has risen by close to 10% over the years, it is about $100,000 below the national average. This is essentially attributable to the affordability of premises across the larger Sun Belt region that includes cities like Greenville. Lower-wage jobs are another major factor. This keeps the home prices more affordable for the tenants of Greenville.
The Median Rent Price
Like with the home price, the rent price in Greenville is more affordable than the national average. However, the rental price of houses in Greenville has increased by approximately 5% in the past year to roughly $1,235 each month. This figure is still approximately $500 below the monthly national average. Typically, this is a factor of manufacturing-focused employment in the city.
The Supply Indicators
The supply of housing is very tight in the Greenville area – below two months of inventory. However, the supply is better than the national average that is slightly above one month of inventory. Home inventory was, however, down by approximately 20% year over year in 2021 February. This was a further decline on top of the 30% drop in 2020.
Architectural Billing
Billings – one of the significant indicators of commercial housing activities – has generally been above the national average in the last five years. However, the billings collapsed in early 2020 due to the pandemic. The billings have since returned stronger and better.
Construction Indicators
The cost of construction has jumped to 7% over the past years. This is essentially attributable to the pressure of inflation and the rising prices of lumber. Additionally, there is a significant shortage of lumber due to the high demand occasioned by home building and remodeling. Additionally, single-family permits have increased by over 200 units above the national forecast. Multiple unit permits have also increased, with approximately 85 above the national estimates.
In a nutshell, Greenville housing is becoming more attractive with each day. Though the pandemic's uncertainties were fronted, the city has still indicated its vibrancy and the ability to bounce back after an economic graze.
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