Factors Influencing the Growth of Greenville’s Real Estate Industry
For a long time, the real estate market in Greenville was nothing but a shadow. Abandoned storefronts and overgrown vegetation were a common sight in the formerly vibrant textile town. However, close to two decades, revitalization efforts in the town saw a complete turnaround. Today, Greenville is a vibrant town full of promise, with small businesses filling empty storefronts.
One of the major forces behind the town's successful revitalization is the influx of major manufacturers to the region. With its central location, low-cost workforce, and business-friendly climate, this town has been bringing in people in great numbers. It's the surge in population that has made Greenville a magnet for real estate investors.
Here are a few factors that are influencing the growth of the real estate market in Greenville.
Unemployment Is Low
Greenville has an unemployment rate of 4.6%, which is below the national average of 6%. The low rates of unemployment are supported by several large manufacturing companies currently operating from Greenville. The town has also developed a strong employment base in sectors such as technology, healthcare, and logistics.
The Housing Market Is Tight
With people continuously migrating into Greenville, its housing inventory is bound to get lower. The housing inventory is currently at 1.8, which is down by 1.54 compared to the previous year. This trend is supported by increased affordability, steady employment, and continued in-migration by job seekers. Real estate investors have moved in to meet the increasing demand, especially for multi-unit constructions.
Adequate Rental Supply
As stated before, the booming real estate industry in Greenville is supported by an increase in population. This, in turn, has led to rental vacancies in the town being slightly above the national average. However, the rental prices are below the national average. Greenville has witnessed a 5% increase in rental rates and a 10% increase in median home prices in the last year.
Regardless of the rates, contractors continue to build new multi-units as the building permits outpace the forecast from the previous year. With more buildings coming up, developers are hopeful the occupancy levels will continue to rise.
Greenville Housing Demand Indicators
The real estate industry is influenced by increased demand and growth potential. More permits have been issued in Greenville this year owing to the following housing demand indicators.
Unemployment trends - Compared to most regions, Greenville's economy was able to recover faster after the pandemic. This is mainly because it is more dependent on sectors such as technology, manufacturing, healthcare, and logistics, hence a low unemployment rate.
Median home price - In the last year, the median home price in Greenville has risen by 10% to approximately $250,000. It's because of the affordability of housing that more people are opting to relocate to this town.
Median rent prices - Rental rates in Greenville are more affordable compared to the national average. The rates increased by 5% in the last year, reaching approximately $1,235 per month, which is $500 below the national average. Greenville has seen an increase in apartment supply due to the increase in new building permits, which beat the previous year's projections.
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