2020 is finally here! And with a new decade comes a new real estate forecast. Property investors are, therefore, searching for the best housing markets in 2020. One location that real estate investors are exploring is Greenville, South Carolina. In recent years, the Greenville real estate market has risen as one of the top markets in the Southeastern United States. So, should you invest in Greenville SC real estate in 2020? We’ll answer this question by taking a look at two factors:
- Greenville SC real estate market data
- Greenville real estate market trends
Greenville SC Real Estate: Mashvisor’s Investment Data
Let’s start by looking at the performance of Greenville SC real estate. Mashvisor’s analytical tools allow users to analyze any real estate market in the US. Take a look at Mashvisor’s Greenville housing market data:
- Median Property Price: $398,175
- Price per Square Foot: $115
- Price-to-Rent Ratio: 26
- Traditional Rental Income: $1,301
- Traditional Cap Rate / Cash on Cash Return: 1.0%
Greenville Real Estate Market Trends for 2020
Besides taking a look at the data, you have to understand a few local real estate market trends to know if Greenville real estate investing is smart for 2020. In fact, the combination of Mashvisor’s data with the knowledge of Greenville market trends will give you the best forecast for Greenville SC real estate.
There are five Greenville real estate market trends you should know about:
The Greenville SC Real Estate Market Will Be Profitable in 2020
Profitability is the name of the game with real estate investing. So it’s good to know that Greenville SC real estate is very profitable. As seen previously, the average traditional rental income in Greenville is $1,301. Not only is Greenville rental property lucrative in 2020, but it is also more profitable than the average income property in the state. According to Mashvisor, the average return on investment for Greenville real estate is 1.4 times higher than that of the South Carolina real estate market.
It’s important to note that these ROI figures are merely averages. Taking a look at Greenville investment property listings from Mashvisor’s Property Finder, you can easily find high cash on cash return rentals- as high as 19%! Sign up for free now to take a look for yourself.
Greenville Real Estate Will Have a High Appreciation Rate
Greenville SC real estate also benefits from a high property appreciation rate. The city’s high average real estate appreciation rate is actually nothing new. According to NeighborhoodScout, Greenville real estate appreciated by over 57% in the last 10 years. This placed the housing market in the top 10% for national appreciation rates. In 2019, the average Greenville real estate investment appreciated by 4.5%. This rate was higher than those of 50% of markets in the South Carolina real estate market. The positive appreciation trend is projected to continue in 2020. According to Zillow, Greenville’s expected appreciation rate in 2020 is 2.7%. As a result, Greenville house prices and values will increase next year.
Greenville Real Estate Will Benefit From the City’s Strong Economy
A rental market can improve greatly with a strong job market. Fortunately for investors, the Greenville SC real estate market will be supported by a strong economy. In the next ten years, Greenville’s economy is expected to grow by nearly 40%. This is considerably higher than the US average of 33%. Greenville’s unemployment rate of 3.0% is also better than the US average of 3.9%. In addition, Greenville’s economy is very diverse. Not only is it “The Textile Capital of the World”, but it is also home to major energy, technology, and automotive sectors. As a result of these economic trends, income property in Greenville will be a great real estate investment in 2020.
Non-Owner Occupied Airbnb Rental Properties Are Not Permitted
Investing in traditional rental properties makes for a viable and lucrative strategy for Greenville SC real estate. However, the same cannot be said of Airbnb Greenville. While there are Airbnb regulations in Greenville, they are fairly restrictive. Most importantly, non-owner occupied rentals cannot be used for Airbnb real estate investing. Also, Airbnb Greenville short-term rentals are not operable in residential zones. Owner-occupied rentals in permissible zones fall into two categories: hotel/motel and bed &breakfast inn. The classifications are similar, primarily differing in permit requirements and allowed commercial zones. Airbnb hosts must also pay a 3% accommodations tax.
For more on Greenville Airbnb laws, check out the Greenville SC government website. Due to these Airbnb regulations, Airbnb Greenville is not a recommended full-time real estate investment strategy for 2020.
Greenville Rental Properties Will Be in High Demand in 2020
Above all, Greenville SC real estate will be in demand in 2020. This demand will come from both real estate investors looking to buy an investment property as well as tenants looking for rental homes.
According to the PwC’s Emerging Trends in Real Estate report, Greenville will experience high investor demand in 2020. Due to such high demand, Greenville SC real estate will be a warm seller’s market this year, according to Zillow.
Greenville SC is also a relatively inexpensive place to live. For instance, Greenville’s cost of living is 10.2% lower than the US average. Greenville’s cost of living is affordable; however, its housing costs are not as cheap. This is evident with its price-to-rent ratio of 26. This indicates that, for the average Greenville resident, it is more affordable to rent a property rather than buy one. As a result, about 60% of residents live in Greenville rental properties. The city is also ranked as one of the best places to live in the state and the nation as a whole. So it makes sense that rental properties will continue to be in high demand.
So, Should You Invest in Greenville SC Real Estate in 2020?
Based on the data and trends, investing in Greenville real estate in 2020 will prove to be a profitable venture. Greenville real estate investors will find a large pool of tenants, a supportive economic environment, and positive cash flow. Of course, if you had your heart set on an Airbnb rental property, then the Greenville real estate market is not the ideal location for you. Check out these other Airbnb locations instead.
Best Neighborhoods in Greenville for Real Estate Investing
So, where should you start looking for Greenville homes for sale? According to Mashvisor’s neighborhood analysis, the best neighborhoods for buying a Greenville real estate investment are:
- Median Property Price: $329,667
- Price-to-Rent Ratio: 15
- Traditional Rental Income: $1,807
- Traditional Cap Rate / Cash on Cash Return: 4.8%
- Median Property Price: $131,103
- Price per Square Foot: $172
- Price-to-Rent Ratio: 12
- Traditional Rental Income: $881
- Traditional Cap Rate / Cash on Cash Return: 3.5%
- Median Property Price: $135,249
- Price-to-Rent Ratio: 13
- Traditional Rental Income: $897
- Traditional Cap Rate / Cash on Cash Return: 2.2%
- Median Property Price: $359,499
- Price-to-Rent Ratio: 23
- Traditional Rental Income: $1,328
- Traditional Cap Rate / Cash on Cash Return: 1.8%
- Median Property Price: $291,463
- Price-to-Rent Ratio: 22
- Traditional Rental Income: $1,112
- Traditional Cap Rate / Cash on Cash Return: 1.3%
The Greenville SC real estate market is an opportunity no traditional investor wants to miss in 2020. Want to start searching for Greenville real estate for sale? Then CLICK HERE to start your 14-day FREE trial with Mashvisor!