The US housing market is filled with many profitable real estate markets. Some are headlined year after year as the best place to invest in real estate. Others remain under-the-radar, offering lucrative investment opportunities to those who seek them. The South Carolina real estate market fits into the latter category.
But how is the South Carolina real estate market expected to perform? What are some of its most important real estate market trends? What are the best cities in South Carolina to buy a rental property? We’ll answer all of these questions in this blog.
South Carolina Real Estate Market: State-Level Data
Charleston, South Carolina
Let’s tackle the first question: How is the South Carolina housing market projected to perform? In other words, what is its state-level data? We’ve compiled data from Mashvisor’s rental property calculator, a revolutionary real estate investing tool that helps investors with buying an investment property. To learn more about the rental property calculator, click here!
Related: Mashvisor’s Rental Property Calculator: A Guide for Beginner Real Estate Investors
- Median Property Price: $323,612
- Price-to-Rent Ratio: 22
- Price Per Square Foot: $196
Traditional
- Rental Income: $1,248
- Cap Rate / Cash on Cash Return: 1.1%
Airbnb
- Rental Income: $2,377
- Cap Rate / Cash on Cash Return: 3.5%
- Occupancy Rate: 47%
What’s most striking about the South Carolina housing market is its two most important real estate market trends: profitability and affordability. The state’s median property price is less than the national average. Its rental income and return on investment for both traditional and Airbnb real estate investing are very high. The presence of these two factors is a great indicator of the success of a real estate market.
But even with the affordable property prices, there is demand for rental properties, as seen with the state’s price-to-rent ratio of 22. This further incentivizes real estate investors to invest in the South Carolina real estate market.
Our next question deals with where to invest in real estate in SC. According to Mashvisor’s rental property calculator, the best cities in South Carolina for traditional investing are Gadsden, Hephzibah, and New Zion. The best cities in South Carolina for Airbnb investing are Florence, Easley, and Forest Acres.
Best Cities in the South Carolina Real Estate Market: Traditional
Gadsden
- Median Property Price: $59,000
- Price-to-Rent Ratio: 4
- Traditional Rental Income: $1,320
- Traditional Cap Rate / Cash on Cash Return: 13.1%
Gadsden perfectly embodies the real estate market trends of the South Carolina real estate market. It provides ample affordable real estate opportunities with properties for sale at less than $60,000. South Carolina investment properties in this town have a median property price that is five times less than the state median! Its profitability is through the roof as well. The average return on investment for a Gadsden rental property is over 13%, with an average rental income of $1,320. Overall, Gadsden offers South Carolina real estate investments with tremendous traditional investing potential.
Hephzibah
- Median Property Price: $83,000
- Price-to-Rent Ratio: 6
- Traditional Rental Income: $1,240
- Traditional Cap Rate / Cash on Cash Return: 11.6%
Much like Gadsden, Hephzibah is a contender for the best place to invest in real estate in the South Carolina traditional market. The town is full of affordable and profitable South Carolina real estate investments. Although its median property price is not as low as Gadsden’s, Hephzibah provides many investment properties for sale that are under $90,000. Profitability is a staple of these South Carolina investment properties as well, with an average rental income of $1,240 and an ROI of 11.6%.
New Zion
- Median Property Price: $59,900
- Price-to-Rent Ratio: 6
- Traditional Rental Income: $915
- Traditional Cap Rate / Cash on Cash Return: 7.2%
Like the two aforementioned locations, New Zion provides excellent traditional South Carolina real estate investments. Its median property price is among the lowest in the state at roughly $60,000. Cap rate, cash on cash return, and rental income also boast impressive numbers. New Zion is a quintessential location for traditional real estate investing in the South Carolina real estate market.
Best Cities in the South Carolina Real Estate Market: Airbnb
Florence
- Median Property Price: $217,551
- Price-to-Rent Ratio: 14
- Price Per Square Foot: $97
- Airbnb Rental Income: $2,835
- Airbnb Cap Rate / Cash on Cash Return: 9.7%
- Occupancy Rate: 53%
Florence is home to many cultural, sports, and recreational sites. The Florence Museum of Art, Science, and History, for instance, draws the attention of many tourists every year. The success of the tourism industry is reflected in the small city’s Airbnb success. Based on the numbers, Florence is the best place to invest in real estate for Airbnb South Carolina. It has the state’s highest Airbnb ROI average and its rental income is top-notch.
Easley
- Median Property Price: $243,589
- Price-to-Rent Ratio: 22
- Price Per Square Foot: $133
- Airbnb Rental Income: $2,685
- Airbnb Cap Rate / Cash on Cash Return: 8.5%
- Occupancy Rate: 30%
Not too far from Florence’s success comes Easley, the second-best Airbnb location in the South Carolina real estate market. Like all the locations on this list, its median property price is well below the state’s median price. Easley has some of the best real estate investments for Airbnb, as seen with its whopping return on investment and rental income.
Forest Acres
- Median Property Price: $227,650
- Price-to-Rent Ratio: 18
- Price Per Square Foot: $110
- Airbnb Rental Income: $2,065
- Airbnb Cap Rate / Cash on Cash Return: 6.9%
- Occupancy Rate: 48%
Last, but definitely not least, of the best Airbnb cities in the South Carolina real estate market is Forest Acres. The city is one of the best for buying a rental property for Airbnb. As seen with every city on this list, Forest Acres’ properties are inexpensive and profitable.
All in all, the South Carolina real estate market is one of the most underrated locations in the US housing market. South Carolina houses for sale have admirably low prices and tremendously high returns and income for both rental strategies. Want to start searching for the best real estate investments in South Carolina or the US as a whole? Then click here to start your 7-day free trial at Mashvisor!