CHMA: Charleston-North Charleston-Summerville, South Carolina · PDF file Major Employers in the Charleston-North Charleston-Summerville HMA Name of Employer Nonfarm Payroll Sector

C O M P R E H E N S I V E H O U S I N G M A R K E T A N A L Y S I S

As of July 1, 2011U.S. Department of Housing and Urban Development Office of Policy Development and Research

Charleston-North Charleston- Summerville, South Carolina

Atlantic Ocean

Berkeley

Charleston

Dorchester

Colleton

Orangeburg

Bamberg

Beaufort

Williamsburg

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Clarendon Calhoun

Housing Market Area

Market Details Economic Conditions ...............2

Population and Households .....4

Housing Market Trends ............6

Data Profile ...............................9

Summary

The Charleston-North Charleston- Summerville Housing Market Area (HMA) consists of Berkeley, Charleston, and Dorchester Counties in South Carolina and is coterminous with the Charleston-North Charleston- Summerville Metropolitan Statistical Area. The central city of Charleston, located on the Atlantic Coast, is a tourist destination and business center for the region.

Economy The Charleston-North Charleston- Summerville HMA economy is recovering, based on the number of job gains in the education and health services, professional and business services, and leisure and hospitality sectors. During the 12 months ending June 2011, nonfarm payrolls averaged 285,400 jobs, up 1.4 percent from the number of jobs recorded during the previous 12 months. Nonfarm payrolls are projected to increase by an average of 1.3 percent annually during the forecast period, to 296,100. Table DP-1 at the end of this report provides employment data for the HMA.

Sales Market The sales housing market in the HMA is soft, with an estimated vacancy rate of 2.6 percent. During the 3-year forecast period, demand is estimated for 11,050 new homes (see Table 1). A portion of the approximately 19,000 other vacant units may return to the sales market and satisfy some of the demand.

Rental Market The rental housing market in the HMA is currently soft but has improved in the past year. The overall rental vacancy rate is estimated at 10.7 percent, down from 13.9 percent in 2010. During the forecast period, demand is expected for 2,250 new rental units. The 570 units currently under construction will meet a portion of that demand (see Table 1).

Notes: Total demand represents estimated production necessary to achieve a balanced market at the end of the forecast period. Units under construction as of July 1, 2011. A portion of the estimated 19,000 other vacant units in the HMA will likely satisfy some of the forecast demand.

Source: Estimates by analyst

Charleston- North Charleston-

Summerville HMA

Sales Units

Rental Units

Total Demand 11,050 2,250

Under Construction 1,375 570

Table 1. Housing Demand in the Charleston-North Charleston-Summerville HMA, 3-Year Forecast, July 1, 2011 to July 1, 2014

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2 Economic Conditions

Economic conditions in the Charleston-North Charleston- Summerville HMA have improved, with job increases since the second quarter of 2010 reversing a downward trend that began in the second quarter of 2008. From 2001 through 2007, nonfarm payroll job growth was steady and averaged 7,125 jobs, or 2.8 percent, annually. In 2008, growth slowed, the HMA added only 400 jobs, and nonfarm payrolls peaked at 299,000. From the time when job losses began in the second quarter of

2008 to the time when nonfarm pay- rolls bottomed out in the first quarter of 2010, the HMA lost an average of 14,700 jobs, or 2.8 percent, annually. During the 12 months ending June 2011, nonfarm payrolls increased by 4,000 jobs, or 1.4 percent, to 285,400 jobs when compared with the number of jobs during the previous 12 months. During the 12-month period ending June 2011, the unemployment rate declined from 9.6 to 8.9 percent. See Figure 1 for labor force, resident employment, and unemployment trends in the HMA since 2000.

Since 2000, the education and health services and the professional and business services sectors have been the fastest growing sectors, increasing by 40 and 31 percent, respectively (see Figure 2). These sectors accounted for more than one-half of job gains during the 12 months ending June 2011. The professional and business services sector increased by 2,300 jobs, or 5.8 percent, and the education and health services sector increased Source: U.S. Bureau of Labor Statistics

Figure 1. Trends in Labor Force, Resident Employment, and Unemploy- ment Rate in the Charleston-North Charleston-Summerville HMA, 2000 to 2010

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Figure 2. Sector Growth in the Charleston-North Charleston-Summerville HMA, Percentage Change, 2000 to Current

Note: Current is based on 12-month averages through June 2011.

Source: U.S. Bureau of Labor Statistics

Total Nonfarm Payroll Jobs

Goods Producing

Mining, Logging, & Construction

Manufacturing

Service Providing

Wholesale & Retail Trade

Information

Financial Activities

Professional & Business Services

Education & Health Services

Government

Other Services

Leisure & Hospitality

Transportation & Utilities

0– 20– 30– 40 10 20 30 40 50– 10

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3 Economic Conditions Continued

by 500 jobs, or 1.4 percent. The largest private-sector employer in the HMA is in the education and health services sector: Roper St. Francis Healthcare, with 4,800 employees (see Table 2). Roper St. Francis Health - care has secured 23.8 acres of land through the nonprofit Medical Society of South Carolina and plans to open a 10,000-square-foot information technology building for a nerve data center in 2013 that would create 125 jobs in the education and health services sector.

The largest public-sector employer in the HMA is Joint Base Charleston, which employs 79,400 active-duty Air Force, Navy, and Army personnel, Department of Defense civilians, and contractors. The base covers 37

square miles, including 16 miles of shoreline and 38 miles of rail, and has $12.2 billion in assets, $4.9 million in local contracts, and an annual economic impact of $4.64 billion, according to the Charleston Metro Chamber of Commerce.

The tourism industry has a significant influence on the local economy, with the leisure and hospitality sector ac - counting for approximately 12 percent of all nonfarm payroll jobs in the HMA (see Figure 3). In 2010, the most recent data available, the HMA had 4.2 million visitors, with an estimated economic impact of $3 billion, which is up from 2009, when an estimated 3.9 million visitors had an economic impact of $2.8 billion. In the 12 months ending June 2011, the leisure and hos- pitality sector increased by 300 jobs, or 0.9 percent, compared with the number of jobs during the previous 12 months. The wholesale and retail trade sector also benefited from the growth in tourism, increasing by 1,050 jobs, or 2.5 percent, in the 12 months ending June 2011.

Since 2000, nonfarm payrolls in the mining, logging, and construction and the transportation and utilities sectors have declined by 19 and 14 percent, respectively. The decline in the mining, logging, and construction sector, which has lost 8,100 jobs since 2008, is due to the slowdown in com- mercial and residential construction. In the 12 months ending June 2011, the mining, logging, and construction sector had the largest number of job losses in the HMA—850 jobs, or 5.8 percent—but the transportation and utilities sector recovered, increasing by 675 jobs, or 6.5 percent (see Table 3). Gains in the transportation and utilities sector are attributable to

Table 2. Major Employers in the Charleston-North Charleston- Summerville HMA

Name of Employer

Nonfarm Payroll Sector

Number of Employees

Roper St. Francis Healthcare Education & Health Services 4,800 The Boeing Company Manufacturing 3,000 J.E.M. Restaurant Group, Inc. Leisure & Hospitality 3,000 Trident Health System Education & Health Services 2,500 Wal-Mart Stores, Inc. Wholesale & Retail Trad