Charleston, August 23, 2025
News Summary
In response to rising home prices and population growth, Charleston’s Mayor William Cogswell has revealed a plan to build 3,500 affordable housing units by 2031. The initiative, projected to cost around $800 million, aims to tackle the city’s housing crisis, where over 50% of renters and 25% of homeowners are cost-burdened. This plan also aligns with broader regional challenges as similar housing demands increase in nearby Fort Mill, SC.
Charleston is at the forefront of addressing the pressing issue of affordable housing as Mayor William Cogswell has unveiled a plan to construct 3,500 new affordable housing units by 2031. The initiative comes in response to the city’s soaring population growth and the urgent demand for affordable living options, estimated to cost around $800 million.
During a city council meeting on August 21, Cogswell highlighted the affordable housing crisis as the most critical social, cultural, and economic challenge facing Charleston, which has seen home prices surge to an average value of nearly $600,000. This alarming trend has left over half of South Carolina’s renters and 25% of homeowners identified as ‘cost-burdened,’ spending a significant portion of their income on housing.
The proposed plan aligns with the broader context of population growth in surrounding regions including Fort Mill, SC, which has experienced an astounding 80% increase in population since 2018. In response to similar housing pressures, Fort Mill’s town council implemented a moratorium on new annexations and rezonings. This reflects a growing concern that housing inventory is failing to keep up with demand, a problem exacerbated by long-term flooding issues in Charleston.
Housing Market Analysis
A study conducted by economist Joseph Von Nessen sheds light on the imbalances in South Carolina’s housing market. It notes that from 2000 to 2007, housing construction grew at an annual rate of 5.3%, but this rate plummeted to 3.1% from 2008 to 2021. During the same period, the state’s population increased by 650,000, creating significant pressure on the housing market.
Charleston’s home prices have doubled from approximately $300,000 to $600,000 in less than a decade due to the limited availability of homes relative to high demand. This escalating housing cost, combined with the city’s growing population, underscores the dire need for affordable options.
Local Regulations and Housing Initiatives
Mark Nix from the S.C. Home Builders Association has pointed out that local regulations contribute to the persistent high prices and slow construction of new housing. Upcoming legislation may even promote a “concurrency” system. This system would tie the approval of new housing developments to the availability of essential infrastructure, potentially limiting permits if services cannot accommodate additional residents.
As Charleston grapples with these challenges, the Charleston Local Housing Trust Fund is set to play a vital role. This fund aims to increase workforce housing availability through below-market loans, complementing the city’s efforts under the Housing Our Future Plan. Additionally, the South Carolina General Assembly has directed housing officials to work with the University of South Carolina to comprehensively study the ongoing housing crisis, with particular attention to population growth concentrated in specific counties, thus creating localized pressures on availability.
The proposed affordable housing units are not just a response to immediate needs but are part of a long-term strategy to ensure residents have access to safe and affordable living conditions amidst Charleston’s challenging economic landscape.
Key Takeaways from the Affordable Housing Initiative
| Feature | Details |
|---|---|
| Number of Affordable Units | 3,500 |
| Projected Cost | $800 million |
| Average Home Price in Charleston | $600,000 |
| Population Growth in Fort Mill, SC | 80% since 2018 |
| Cost-Burdened Residents in SC | Over 50% of renters and 25% of homeowners |
| Housing Construction Growth 2000-2007 | 5.3% annually |
| Housing Construction Growth 2008-2021 | 3.1% annually |
FAQ
What is the purpose of the affordable housing plan proposed by Charleston’s mayor?
The plan aims to construct 3,500 affordable housing units by 2031, addressing the city’s severe housing crisis resulting from population growth and high home prices.
How much will the affordable housing initiative cost?
The initiative is estimated to cost around $800 million.
What is the average home value in Charleston?
The average home value in Charleston is nearing $600,000.
What are the local housing challenges in South Carolina?
Challenges include a supply-demand imbalance in housing, with half of renters being cost-burdened and local regulations slowing new construction.
Deeper Dive: News & Info About This Topic
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Additional Resources
- Live 5 News: City of Charleston Outlines Plan for 3,500 Affordable Housing Units
- Charleston City Paper: S.C. Has Too Many People, Too Few Homes
- Post and Courier: North Charleston SC Cooper Crest Apartments – Affordable
- ABC News 4: Charleston County Launches Fund to Boost Affordable Housing
- Google Search: Affordable Housing
Author: STAFF HERE CHARLESTON
The CHARLESTON STAFF WRITER represents the experienced team at HEREcharleston.com, your go-to source for actionable local news and information in Charleston, Charleston County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Spoleto Festival USA, Charleston Wine + Food Festival, and the MOJA Festival. Our coverage extends to key organizations like the Charleston Metro Chamber of Commerce and the Charleston Museum, plus leading businesses in tourism and maritime industries that power the local economy such as South Carolina Ports Authority and the Charleston Visitor Center. As part of the broader HERE network, including HEREaiken.com, HEREbeaufort.com, HEREchapin.com, HEREcharleston.com, HEREclinton.com, HEREcolumbia.com, HEREgeorgetown.com, HEREgreenwood.com, HEREgreenville.com, HEREhiltonhead.com, HEREirmo.com, HEREmyrtlebeach.com, HEREnewberry.com, HERErockhill.com, HEREspartanburg.com, HEREaustin.com, HEREcollegestation.com, HEREdallas.com, HEREhouston.com, and HEREsanantonio.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.
