9 hours Ago
Charleston is a great place to visit and even a better place to live. People are flocking to the southern town to enjoy its beautiful homes, historic sites, culinary scene, and access to multiple beaches and golf courses. Unfortunately, not everyone – including its current residents – can afford to live in the Holy City, as both the housing and rental markets have become increasingly more expensive.
In other words, if you want to live here, the price tags are often steep. "The terms affordable house and workforce housing sound very "unsexy," particularly in the Charleston area where residential purchase price points and monthly rents continue to increase," says Owen Tyler, Realtor, and regional vice president with the Carolinas & Georgia William Raveis Real Estate. Eleanor Smythe, a Realtor with Maison Real Estate, states that as of January, the median rental cost in Charleston varies depending on the data source and property type.
"The median rent for all property types and bedroom counts is $2,500, which is approximately 27% higher than the national average," she says. Challenge to afford housing The need for affordable housing in Charleston has become a significant concern. "The Charleston housing market is experiencing rapid growth, but many local residents are finding it challenging to keep up with the soaring costs of homeownership and rent," says Smythe.
"Rising housing costs, income disparity, and the burden of housing costs are some key reasons why affordable housing is critical." Roni Haskell, Broker associate with Keller Williams Realty, agrees. "Assuming there are no other debts, someone would need a gross income of $8650 per month or $103,800 a year to afford a home at this price," she says.
"This medium income is in line with the qualification requirement for the median home sale." "Incomes have not kept pace with the increase in the cost of housing, especially new construction for sale homes, in the Charleston Market," adds Tony Berry, principal of TBC Development. "A number of items, including high land cost, increased cost of construction, limited available land with zoning allowing more dense development, impact fees, length of time to get through entitlements and permitting, and higher interest rates for construction loans and mortgage loans, are some contributing factors.
" Homeownership is possible That doesn't mean homeownership is out of the question if you're considered low-income. "Our very low to low-income residents often elect to purchase a townhome or condo unit because there are more options available in their price range of $200,000 or less," says Haskell. "As of February 17, there are 53 listings for sale in the Charleston Trident MLS with listing prices up to $200,000 in Charleston, Dorchester, and Berkeley counties.
" However, Haskell says to consider the HOA and regime fees in townhome/condo units, which can be upwards of $250 to $300 per month on top of your mortgage payment. However, realistically, not every resident can afford or qualify to own a home, but they still need a place to live. "Local and state governments need to be at the forefront of working with affordable housing developers to ensure that incentives exist to build affordable/workforce housing in the Lowcountry," says Tyler.
"A collaborative effort between government, private enterprise, and area residents will ensure that a well-priced, attractive, and quality constructed product is available that will please all of the community, regardless of annual household income." While affordable housing is needed, is it wanted in Charleston? "All you have to do is count the number of police, fire and teacher jobs available in the Charleston and Mt. Pleasant areas and also count the "affordable" restaurant business closings in the areas because of staffing issues," says Mark Mitchell, broker with Dunes Properties of Charleston.
"The biggest problem is that no one wants affordable housing in their neighborhood. Our Realtors Association has a focus group working with the city and county to provide solutions. There are a few projects that have started in Charleston, and yes, a Realtor would be the best option to navigate the availability and financing/grant options.
" Tyler adds that the lack of affordable housing has a domino effect on the community. "The reality is that without affordable housing, everyone suffers from roads congested with those traveling in and out of an area where little to no affordable housing exists," he says. "Also, there will be a workforce that isn't stable due to commute times and distance, which will cause businesses to lose revenue and, in some cases, close up completely, not to mention the loss of a varied resident population.
" Solving the problem According to Tyler, the solution lies with the local and state governments, who need to be at the forefront of working with affordable housing developers to ensure that incentives exist to build affordable/workforce housing in the Lowcountry. "A collaborative effort between government, private enterprise, and area residents will ensure that a well-priced, attractive, and quality constructed product is available that will please all of the community, regardless of annual household income," says Tyler. Savannah Walker, Realtor with Maison Real Estate in Charleston, explains that applicants typically need to meet income requirements, often earning at or below 80% of the area median income to qualify for affordable housing in Charleston.
Other factors, like family size and background checks, also come into play. "Right now, the city has just over 5,600 deed-restricted affordable housing units, but experts say we'll need closer to 16,000 by 2030 to meet demand," she says. "While Charleston is working on solutions, the reality is that the demand for affordable housing still far exceeds what's available.
The biggest need is for lower-income households earning 30% or less of the area's median income." Upcoming projects Charleston is actively addressing affordable housing needs through several ongoing and upcoming projects. "These projects reflect Charleston's commitment to expanding affordable housing options and supporting diverse community needs," says Smythe.
One such project is the 573 Meeting Street Development. "In partnership with One80 Place and Spandrel Development Partners, The Michaels Organization is transforming a vacant lot at 573 Meeting Street into a six-story mixed-use building," says Smythe. "This development will provide permanent, affordable housing exclusively for homeless individuals and families.
" Over 50 new affordable housing units are planned along the Lowcountry Lowline, a proposed linear park in Charleston. "This initiative aims to enhance access to affordable housing while promoting walkability and connectivity within the city," says Smythe. Charleston County owns 993 and 995 Morrison Dr.
, and Smythe says he is willing to sell the land to the City of Charleston for affordable housing. "At a special meeting in September 2024, the city set a goal to build 3,500 affordable units by 2030 to drive down housing costs," she explains. "With the 993 and 995 Morrison Dr.
properties, the city will create 500 affordable units, just shy of the 584 needed annually to meet its goal." Walker explains that other steps have been taken to help combat the problem. "New developments like the James Lewis Jr.
Apartments and Bulls Creek Apartments have recently added more affordable units, and the city is prioritizing building near public transit to make housing more accessible," says Walker. She adds that programs that offer funding, zoning flexibility, and priority processing for affordable projects are also helping. "The city's zoning ordinance includes provisions to facilitate affordable housing development, such as flexible site design requirements, density bonuses, and reduced parking minimums," she says.
"But, the reality is that housing costs are still outpacing incomes." New construction option New construction is one of the best options for budget-constrained first-time homebuyers in today's market. "While you can always negotiate for closing cost assistance with the seller of a pre-owned home, new construction currently has this beat," she says.
"DR Horton, for example, recently offered to pay for my clients to have a permanently fixed interest rate of 5.25%, as well as pay all of their closing costs. This is more than a full point below the current average 30-year-fixed rate for both a conventional and FHA loan.
Of course, inventory levels and buyer demand play into the incentives offered, but right now, it is a great option. This is the reason that most of my buyers in the last 12 months have chosen to purchase a new construction home." Everyone deserves an affordable place to live, and if the city, local government and community can continue to work together to find creative and sustainable solutions, we can hopefully bring this reality to Charleston.
"For communities to grow and prosper, having affordable and attainable housing is the lifeblood to being able to provide for sustainable job and population growth in any community," says Berry..
