Rental rates are on the rise due to new supply
- Due to new multifamily supply, rental rates are 5.48% higher than they were in November of 2018.
- Demand is expected to catch up to supply in the next few quarters.
- Very few rental concessions are necessary to lease apartments in the Columbia submarkets.
The Columbia market activity is currently strongest in the downtown Columbia submarket; the downtown revitalization is a huge draw for residents interested in a walkable atmosphere for entertainment, shopping and working. In other submarkets, the supply has outpaced demand over the past 6 months and according to the Columbia AptIndex, the market absorbed 52 units. Multifamily rental rates averaged $1,077 per month and $1.06 per square foot.
According to the AptIndex, there are currently 669 units under construction within 3 Columbia submarkets and 1,935 units proposed to be built in the Cayce/West Columbia and Downtown Columbia submarkets. Apartments are currently being built faster than they can be absorbed, so there may be a construction lull for a few months to allow demand to catch up with the supply.
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