Columbia, South Carolina, was not hit as hard as some Southeast cities during the recent economic downturn. The city’s employment base of state government, medical and University staff has helped it weather this economic cycle.

In the year between October 2001 and October 2002, the vacancy rate in the Columbia apartment market decreased, according to Michelle Accetta, multifamily analyst with Carolinas Real Data. The vacancy rate reported in October 2001 was 9.2 percent, and in October 2002 the vacancy rate stood at 8 percent. “This drop in vacancy rate can be attributed to improving demand, 452 units absorbed, and declining development activity,” says Accetta. “Between October 2001 and October 2002 272 apartment units were completed. During the same time period 250 units were started, as compared to 288 started the year before and 684 started in 2000.”

The average rent in the Columbia market as of October 2002 ranged from a low of $390 in the North submarket to a high of $683 in the West Lexington submarket. The average rent reported in October was $624, up from $619 reported a year prior. Forty-five percent of Columbia’s apartment communities reported giving some type of concession as of the October 2002 report, remaining relatively unchanged from the 46 percent offering concessions in October 2001. However, this number has risen significantly since the October 2000 report, when only 26 percent of apartment communities in Columbia were offering rental concessions.

New communities under construction and proposed in Columbia include The Reserve at Lake Carolina, a 328-unit development being built by Bostic Brothers outside the Lake Carolina development in northeast Richland County. At Crestmont, 226 units located on Wood Cross Drive in the Northwest/St. Andrews submarket are under construction and will be managed by Intermark Management. Local developers Joe Clark and Tom Studer have proposed to build Rice Creek, 177 townhome units that will be part of the Rice Creek Farms development just off of Hard Scrabble and Lee roads.

“Developers are building communities that offer amenities catering to those who rent by choice rather than necessity,” says Accetta. “This is in response to the new trend of renters choosing apartments for the convenience and hassle-free lifestyle. Unit amenities are now including garages, crown molding, built-in bookshelves, garden bathtubs, gourmet kitchens and pre-wiring for multi-media or in-home business use, all aimed toward the growing renter-by-choice population.”

The two Columbia area submarkets people should keep an eye on in the near future are the Northwest/ St. Andrews and East submarkets. Both of these submarkets have units either currently under construction or proposed, which could affect the future vacancy rate.

The Columbia area continues to have a strong economy with a healthy demand for housing units. The vacancy rate should continue to remain in the 8 to 9 percent range during the new year if healthy absorption levels are maintained to keep up with new development.

Michelle Accetta is a multifamily analyst with Carolinas Real Data.


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