The Guide to Investing in Airbnb Charleston SC

Are you wondering about investing in Airbnb Charleston SC? We have some news and statistics that you might find surprising.

Table of contents

1. South Carolina Real Estate Market Facts
2. Investing in Airbnb Charleston SC: Everything You Need to Know
3. Top 5 Charleston Neighborhoods for Airbnb Rentals
4. How to Find Profitable Airbnb Charleston SC Properties
5. Conclusion

Charleston has become a major destination for all the best reasons. As a result, there is a demand for leasing numerous short-term rentals.

Moreover, the Charleston SC real estate market appears to be on track for a record year of home prices rising. According to the most recent data, median property prices in Charleston have increased by over 24.0% in the last two years.

Let’s see if Charleston SC Airbnb is a good idea for investors.

South Carolina Real Estate Market Facts

Investment companies have benefited from the pandemic housing problem, owning one out of every six residences and 25.0% of all flats purchased in the second quarter of 2021. Investors have been able to capitalize on low-interest rates and high rental demands, especially among those priced out of the market.

According to the National Association of Realtors (NAR), from 2001 to 2020, the United States built 276,000 fewer houses per year compared to the previous 30 years. There would be about 5 million more residences if the rate of production did not slow over the last 20 years.

Under current conditions, it appears to be a challenge. Supply chain disruptions affect 88.0% of construction projects, and almost 90.0% of construction companies cannot recruit enough experienced craftsmen to fulfill demand.

Nevertheless, let’s not forget one crucial fact. The real estate market varies by state, and while many national patterns apply at a more regional level, it is essential to comprehend the circumstances of your specific state. That’s why we will focus on the investment property in Charleston and what it has to offer.

Based on Mashvisor data, these are the most recent South Carolina real estate market statistics as of April 2022.

• Number of Listings for Sale: 8,315
• Median Property Price: $448,980
• Average Price per Square Foot: $267
• Days on Market: 82
• Number of Traditional Listings: 4,036
• Monthly Traditional Rental Income: $1,568
• Traditional Cash on Cash Return: 1.50%
• Traditional Cap Rate: 1.54%
• Price to Rent Ratio: 24
• Number of Airbnb Listings: 11,709
• Monthly Airbnb Rental Income: $2,758
• Airbnb Cash on Cash Return: 3.04%
• Airbnb Cap Rate: 3.13%
• Airbnb Daily Rate: $165
• Airbnb Occupancy Rate: 54%
• Walk Score: 43

Investing in Airbnb Charleston SC: Everything You Need to Know

According to the National Association of Realtors, Charleston is one of the top 10 markets likely to do well now that the pandemic is slowing down.

Before the pandemic, experts forecasted that Charleston would be a hot real estate market as purchasers looked for less expensive options in larger, more crowded areas. The prediction for a solid Charleston real estate market proved correct, as it continues to set records month by month.

Charleston’s housing market is likewise expected to be in the top 10 in the state for the next few years. According to the Charleston Regional Business Journal, the causes for the Charleston real estate market’s outstanding performance include relatively inexpensive housing, stable job growth, and good local economic expansion.

Continue reading to discover why investing in Airbnb Charleston SC would be a good idea.

Airbnb in Charleston SC: Reasons Why You Should Invest

Charleston is more than just your potential flip-and-fix option, thanks to its limitless charm, fascinating history, and continuous hustle. This South Carolina community has had a strong home market for over a century and continuously discovers how to combine its traditional and modern appeal.

1. Growth in Population

According to the latest U.S. Census Bureau study, the City of Charleston and the metro region had a double-digit population increase during the last ten years. Charleston expanded by an astounding 25.0% in the previous decade, whereas Berkeley County and Charleston County surged by 29.0% and 16.6%.

2. Labor Market

According to VentureBeat, the Charleston population increase is also helping to drive the city’s IT scene. Entrepreneurs and venture capital firms coming to this low-cost coastal center are helping to shape Charleston into a new hotspot for high-tech startup activity and events—where searching for investment property in Charleston sounds like a smart idea for investors.

It might be a good idea to think about investing in Airbnb Charleston SC since the economy remained resilient last year and is expected to grow in the coming years.

3. Great Housing Market

According to the recent news, Charleston-North Charleston is one of the top 10 hottest property markets. That has proven to be entirely correct even in the previous year. The region’s good quality of life, solid economy, and expanding job market attract employers and travelers—therefore, investing in Airbnb Charleston SC beach would be profitable.

In the most recent Charleston Trident Association of Realtors report, the median sales price of homes grew 14.4%  year on year, with less than a one-month supply of unsold properties on the market. The average single-family home sales price increased 16.0%  to $363,700 in the third quarter of 2021.

4. Good Market for Renters

The Charleston rental market obtains good marks for market activity, cost of rental properties, and a good standard of living. Another factor for the high demand for investment homes in Charleston is the persistent housing demand and supply disproportion.

According to the Charleston Regional Business Journal, the Charleston region needs approximately 7,500 residential units to keep up with population growth but has not reached that building level since 2006. Nevertheless, the market is reasonable to buy in, so having an Airbnb downtown Charleston SC wouldn’t be wrong.

5. Culture

Culture is a problematic metric to define, but if you were to pick the greatest cities in the United States based on “entertainment value,” Charleston would undoubtedly be in the running. Charleston ranks 24th out of 182 US metro areas on WalletHub’s ranking of the “Most Fun Cities in America.” Charleston was also placed first in both North Carolina and South Carolina in its analysis.

Everyone who has visited South Carolina’s low country will know this. The city has fantastic restaurants, stunning views, and a pleasant atmosphere. Moreover, there is FIG, which serves seasonal cuisine with culinary ideas from around the world, and is one of the top fine dining options in Charleston.

6. History

Charleston, founded in 1670, is distinguished by its attractiveness that foreshadows historical roots. Walk down cobblestone streets, enjoy a sunset horse-drawn carriage ride, or see the French Quarter. Because of its 400+ churches, the city was formerly dubbed “the holy city.”

The lovely Charleston area currently has a population of roughly 135,000 people. The city is situated on the lake and offers everything from waterfront property to modern metropolitan styles. It is undoubtedly one of the most desired residential cities and holiday destinations, making investing in Airbnb Charleston SC an excellent idea.

What Makes Investing in Airbnb Charleston SC a Good Idea?

Charleston’s breathtaking scenery demands a plethora of choices. Investors like the city for its diverse offerings as a top marketplace for Airbnb property and the continual development in rental choices. Because of the city’s strong economy, it’s simple to find well-qualified renters, whether long-term or short-term.

According to statistics, 46,0% of Charleston’s inhabitants, or approximately 60,000 people, are renters who pay an average monthly rent of $2,000–$2,400. One consistency for a rental property in the historic city is that there are always job possibilities attracting new residents.

Moreover, Charleston is a reasonably safe city. Numerous communities in Charleston, SC, will provide you with the utmost safety. As a result, the city is appealing to families.

You can freely go ahead and search for a South Carolina investment property, especially in Charleston. It is a goldmine for both long-term and short-term rental investors. Rents are increasing, life quality is great, living costs are cheap, and the economy is strong.

Top 5 Charleston Neighborhoods for Airbnb Rentals

According to Mashvisor data as of April 2022, the top five Charleston neighborhoods for Airbnb investment property based on Airbnb cash on cash return are as follows:

1. Westside

• Number of Airbnb Listings: 814
• Monthly Airbnb Rental Income: $7,758
• Airbnb Cash on Cash Return: 9.47%
• Airbnb Cap Rate: 9.60%
• Airbnb Daily Rate: $383
• Airbnb Occupancy Rate: 61%
• Number of Listings for Sale: 4
• Median Property Price: $595,000
• Average Price per Square Foot: $462
• Days on Market: 127
• Walk Score: 70

2. Eastside

• Number of Airbnb Listings: 786
• Monthly Airbnb Rental Income: $5,535
• Airbnb Cash on Cash Return: 7.74%
• Airbnb Cap Rate: 7.86%
• Airbnb Daily Rate: $393
• Airbnb Occupancy Rate: 61%
• Number of Listings for Sale: 3
• Median Property Price: $766,667
• Average Price per Square Foot: $321
• Days on Market: 13
• Walk Score: 90

3. Mazyck

• Number of Airbnb Listings: 791
• Monthly Airbnb Rental Income: $5,576
• Airbnb Cash on Cash Return: 7.48%
• Airbnb Cap Rate: 7.61%
• Airbnb Daily Rate: $394
• Airbnb Occupancy Rate: 61%
• Number of Listings for Sale: 2
• Median Property Price: $462,500
• Average Price per Square Foot: $640
• Days on Market: 423
• Walk Score: 96

4. Gadsden Green

• Number of Airbnb Listings: 811
• Monthly Airbnb Rental Income: $5,973
• Airbnb Cash on Cash Return: 6.99%
• Airbnb Cap Rate: 7.09%
• Airbnb Daily Rate: $384
• Airbnb Occupancy Rate: 61%
• Number of Listings for Sale: 5
• Median Property Price: $885,700
• Average Price per Square Foot: $424
• Days on Market: 74
• Walk Score: 80
  

5. Hampton Park Terrace

• Number of Airbnb Listings: 814
• Monthly Airbnb Rental Income: $11,184
• Airbnb Cash on Cash Return: 6.72%
• Airbnb Cap Rate: 6.77%
• Airbnb Daily Rate: $382
• Airbnb Occupancy Rate: 61%
• Number of Listings for Sale: 4
• Median Property Price: $1,259,500
• Average Price per Square Foot: $528
• Days on Market: 49
• Walk Score: 73

How to Find Profitable Airbnb Charleston SC Properties

If you have decided to invest in a Charleston vacation rental, you must know where to start. How can you locate a property that could generate a substantial passive income stream?

Mashvisor can help in such situations by offering multiple tools to locate the best investment property and even perform an Airbnb analysis. Let’s see how:

1. Property Finder

Mashvisor’s Property Finder is an online app that can assist you in finding homes for sale in Charleston. It’s simple to navigate and gathers all available listings in your desired area, allowing you to sort out the results to locate the perfect listing.

2. Investment Property Calculator

Our Investment Property Calculator is reliable since we use data from reputable sources such as Airbnb and other short-term rental websites. We also update our data on a regular basis, so you can be sure you’re getting the most up-to-date estimations.

The calculator also gives you predictions for both rental strategies, allowing you to choose the ideal one. With this tool, investors can obtain estimates for the following parameters:

• Cap rate
• Airbnb occupancy rate
• Cash on cash return
• Cash flow
• Rental income
  

3. Real Estate Heatmap

This tool assists you in conducting neighborhood research of any area in the United States, which is an important part of market analysis. It was designed to help a real estate investor focus on regions with the greatest potential for profit and return on investment.

To calculate how much cash flow an area will create, the Real Estate Heatmap examines the following data:

• Occupancy rate
• Cash on cash return
• Rental income
• Listing price

To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.

Conclusion

If you’ve determined that investing in real estate this year is a good idea, then Airbnb Charleston SC might be an excellent start. However, if you want to generate significant revenue, you must do it correctly. You must select the appropriate location and property and employ the tools that can assist you in your market and property research.

Mashvisor comes in handy in this situation. Our platform was designed with experienced real estate investors in perspective. You’ll find factual and helpful information to help you with your Airbnb business. Furthermore, its tools employ predictive Airbnb analytics to assist you in keeping up with real estate market dynamics.

Start out your 7-day free trial with Mashvisor now.