News Summary
Zillow’s latest report indicates that home values in South Carolina are expected to decline over the next 12 months, with Charleston and other metropolitan areas likely to be affected. The forecasted drop aligns with a national trend, as U.S. housing values are set to decrease. Factors such as increased available listings and high mortgage rates contribute to this trend, alongside potential impacts from recent immigration policy changes affecting the construction labor force. The local housing market remains challenged by low inventory and rising demand, making affordability a growing concern for residents.
Charleston, South Carolina – Zillow’s latest home value forecast indicates that housing prices in South Carolina may experience a downturn over the next 12 months. The expected decline aligns with a broader national trend, as U.S. housing values are projected to drop by 1.9% this year. Currently, the average home value in South Carolina stands at $298,029, reflecting a 1.5% increase compared to the previous year.
The report highlights that a potential decrease in home values could impact 12 out of 15 metropolitan areas within South Carolina that were analyzed by Zillow. Factors contributing to this possible decline include an increase in available listings and elevated mortgage rates, creating a market susceptible to price drops as the year concludes.
Specifically, Charleston, with an average home value exceeding $572,000, is forecasted to see a slight decrease of 0.3% in home values over the next year. Other metropolitan areas anticipated to face declines include Greenville (1.1%), Columbia (0.4%), Myrtle Beach (1%), and Florence (1.4%). In contrast, areas like Hilton Head Island, Georgetown, and Seneca are projected to see slight increases in home values. Predictions suggest that smaller communities such as Bennettsville and Gaffney might witness declines over 5%.
Besides the changing dynamics in home values, recent immigration policies from the White House are adding complexity to the situation, particularly in Charleston. Many Latino construction workers, vital to the housing sector, may confront increased threats of deportation. This sudden change in immigration policy may disrupt the construction labor force, leading to a rise in housing costs as higher labor expenses combine with rising tariffs on building materials.
Economists caution that these policy alterations could extend the timelines for construction projects, ultimately raising the costs associated with new housing developments. Data indicates that roughly 20% of the U.S. construction workforce is at risk due to these immigration policy changes, hinting at a significant ripple effect across the housing market.
Despite Charleston seeing a rise in new housing permits, there is an ongoing challenge related to low inventory compared to increasing demand. This scarcity of available homes contributes to the growing difficulty many residents face in finding affordable housing in the city.
Compounding these issues, the Charleston school board has approved the initial reading of a budget for 2026, which includes substantial pay raises for educators. Furthermore, local officials have reported a concerning surge in cases of mental health issues within Lowcountry police departments and hospitals. Recently, there has also been a noted increase in violent crimes, showcasing ongoing challenges related to community safety.
In summary, South Carolina’s housing market is on the brink of potential declines in several metropolitan areas, influenced by a variety of factors from economic forecasts to changes in immigration policies. As the market evolves, residents may find navigating home affordability increasingly challenging.
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Additional Resources
- Live 5 News
- Wikipedia: Charleston, South Carolina
- Norada Real Estate
- Google Search: South Carolina Housing Market
- The State
- Encyclopedia Britannica: South Carolina
- Post and Courier
- Google News: Charleston Home Sales
- US News
- Google Scholar: Charleston Housing Market
