Why Greenville Has Enough Rentals for Apartment Seekers
The population of Greenville is growing very fast. This comes with more people looking for housing. People moving to the area want to find a place they can call home and enjoy their new life in this beautiful city. A population boom is causing an immediate need for housing across the entire state. There is enough inventory of rental properties available for those who need them. However, the increasing population growth may result in a housing shortage in the near future. Although there are developers willing to construct a multifamily building, getting a permit is not easy. We will share some statistical information derived from recent research.
Rental Rates Rises
The city's rental vacancy rate is above the U.S. average. Greenville had available units for every 100 renter households in 2018. A negligible difference compared to the national average of 97 units per 100 renters. It had remained steady at this level since 2019 when 98 apartments were vacant for every 100 residents looking for housing. Rental rates rose 5% between 2020 and 2021. This puts them on par with many other cities across North Carolina, including Durham, Raleigh & Charlotte. But it is 30% below the state-wide median increase. By comparison, the median home price rose approximately 10% over that same period. This made both options more expensive than they were before.
Some Challenges That Tenants Face
One of the most prominent challenges tenants face is not being able to find a place to live. Developers are continuing to apply for permits to construct multifamily buildings. These new apartments will provide additional housing options for residents looking for rentals. Multifamily units will be offered at an affordable rate. As more people move into town each year, the demand for rental houses continues to increase. The suppliers offer short-term rental property listings on sites like Airbnb to meet the demand. Construction projects that were once seen as risky ventures are becoming popular. Developers continue to apply for permits to construct multifamily buildings. Unfortunately, local authorities are reluctant to offer permits. Only 15 have been issued so far in 2019 - a number which had not changed much since 2018 when there were 19 new projects underway.
Developers applying for these permits are high-risk-takers. The market is still not recovered, and there's still a lot of uncertainty in the market. The number of multifamily permits has increased over time as confidence returns to developers and lenders. Both have been investing in new construction, renovation projects, or acquisition opportunities. Apartment builders have applied for more than 70% more permits so far this year. During that same period, about 30% fewer single-family home building applications were submitted across Greenville County.
Greenville's housing market is still affordable. It has a lot to offer those looking for rental homes or apartments. Although the population has increased, rental rates have insignificantly increased by only 5%. Greenville may not have a housing shortage as more developers are venturing into the market. But the problem may arise as the local authority fails to approve the requests sent by these developers. If the authority continues denying developers construction permits, the rental rates may rise by more than 10% in the next year as the population continues to grow.
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