Charleston New Construction Homes Market Update – August 2024

If you’re considering a new home in Charleston, the market continues to offer excellent opportunities for buyers. From interest rate buydowns to closing cost incentives, to simply just having inventory, the new construction market has been a safe haven for buyers in recent years. Whether you’re looking for a new construction home in Charleston, Berkeley, or Dorchester counties, understanding the latest trends and statistics will help you make informed decisions. 

Charleston Real Estate Market Snapshot

As of August 13, 2024, there are 3,975 active homes for sale in the Charleston MLS. Of these, 1,129 are newly constructed homes, making up 28% of the total market. With nearly a third of the market being new builds, this is an ideal time for buyers seeking modern amenities and move-in-ready homes.

New vs. Resale Homes in Charleston 

When looking at pending sales, 45% of the homes under contract are new constructions, highlighting the growing demand for new homes in the region. Out of 2,583 pending sales, 1,168 are new builds compared to 1,416 resales.

New construction accounted for 36% of all home closings across the Charleston area in June 2024, based on data from REIS. Breaking it down further:

    •    Charleston County saw 13% of closings for new homes

    •    Berkeley County led the region with 51%

    •    Dorchester County followed closely with 49%

National Comparison: Charleston's Growing Role in New Home Construction 

On a national level, the Charleston-North Charleston metro area is a rising star in the housing market. In 2023, it ranked as the 24th largest market for single-family new construction in the United States, with 5,488 new home closings during the calendar year. This places Charleston among the top markets for new builds, reflecting the region’s growing appeal and development potential.

While Charleston boasts a variety of homebuilders, including many luxury custom builders, publicly traded companies have steadily increased their market share. So far in 2024, publicly traded homebuilders controlled 66.2% of the new home market. This trend is expected to accelerate, especially after publicly traded  Dream Finders Homes acquired locally based Crescent Homes, which is currently developing 12 communities across the metro area. This acquisition signals continued growth in the availability of new homes and a likely rise in market share for national builders.

How New Home Sales Compare Historically 

For the most recent rolling 12 months, 5,425 new homes have closed in the Charleston area. While this is a strong number, it’s below the historical high of 7,100 set in 2006. For context, the market bottomed out in 2009, with only 2,100 new homes closing during that year.

Average Sales Price of New Homes

The price for new homes in the Charleston market varies significantly based on location:

    •    Charleston County: $726,798

    •    Berkeley County: $454,223

    •    Dorchester County: $395,156

The overall average sale price for new homes across the region sits at $471,397 as of June 2024, making new construction homes more accessible in areas like Berkeley and Dorchester counties.

Permits Issued for Single-Family New Homes

New home construction remains robust, with 6,535 single-family permits issued in the last 12 months. While this is down from the historical high of 8,084 permits in 2005, it’s a significant increase from the 2009 low of 2,732 permits. The steady number of new permits is a positive indicator for the ongoing development in the region.

Final Thoughts

New construction homes are making a strong showing in the Charleston market, accounting for a significant portion of both active listings and pending sales. If you’re considering a move to Charleston, exploring new homes could provide an opportunity to enjoy modern layouts, energy-efficient features, and less need for immediate renovations. Whether you’re eyeing a location in Berkeley, Dorchester, or Charleston counties, the availability of new homes at varying price points provides options for a wide range of buyers.

For more information or to get a list of available new construction homes, contact me today!