Spartanburg Housing Case study

Introduction

Spartanburg, South Carolina, has experienced significant growth in its housing market, driven by economic development and strategic investments. This case study examines the factors contributing to rising home prices, the rapid sale of properties, and the impact of new industrial and retail developments on the local economy.

Housing Market Trends

As of December 2024, Spartanburg's housing market has seen an 18.6% year-over-year increase in median home prices, reaching $245,000. Homes typically remain on the market for 75 days, a notable increase from 37 days the previous year. In December 2024, 38 homes were sold, slightly down from 40 in December 2023.

Redfin

In Spartanburg County, the median listing price per square foot stood at $164 in July 2024, with homes selling after an average of 47 days on the market. The median sold price was $272,500, and properties generally sold for 1.91% below the asking price.

Realtor

Economic Development and Job Creation

In 2024, Spartanburg County attracted 23 economic development projects, resulting in a total capital investment of $745 million and the creation of 1,220 new jobs.

Spartanburg

This influx of investment has been a significant driver of housing demand, as new employment opportunities attract workers seeking residences in the area.

Notably, Omron Automation established its first South Carolina operation in Spartanburg County in early 2024, investing $9.2 million and creating 162 jobs over five years.

One Spartanburg, Inc.

Such developments enhance the local economy and increase the demand for housing.

Impact of Commercial Real Estate Developments

The region has also seen substantial commercial real estate activity. As of May 2024, several major projects were underway, including the Fifth Third Park at 131 W. Main St., Spartanburg, approved by the city council in April 2024.

Upstate Business Journal

These developments contribute to the area's appeal, offering amenities and services that attract new residents and businesses.

Case Studies of Successful Spec Builds

Our company has capitalized on these favorable market conditions by constructing high-quality, affordable homes that meet the needs of incoming residents.

A few that went on market:

• Balsam Plan – 117 Balsam Ln, Woodruff, SC 29388

  • Construction Cost: $188,800

  • Build Time: 5 Months

  • Heated Square Footage: 1,500 sq ft

  • Time on Market: <30 days

  • Sale Price: $328,000

• Liberty Plan – 789 Liberty St, Spartanburg, SC 29306

  • Construction Cost: $149,000

  • Build Time: 4 Months

  • Heated Square Footage: 1,298 sq ft

  • Time on Market: Immediate contract

  • Sale Price: $244,000

These projects underscore the effectiveness of our approach: offering aesthetically appealing, budget-friendly homes that align with market demands.

Year-Over-Year Return Analysis for Our Builds

Analyzing the year-over-year return for the properties we’ve developed provides insight into their performance relative to the broader Spartanburg housing market.

1. Balsam Plan at 117 Balsam Ln, Woodruff, SC 29388

• Construction Cost: $166,800

• Heated Square Footage: 1,500 sq ft

• Sale Price: $328,000

• Time on Market: <30 days

2. Liberty Plan at 789 Liberty St, Spartanburg, SC 29306

• Construction Cost: $145,000

• Heated Square Footage: 1,298 sq ft

• Sale Price: $244,000

• Time on Market: Under contract immediately

Market Context

As of October 2024, the median listing home price in Spartanburg, SC, was $259,900, reflecting a 3.2% year-over-year increase.

Realtor

The median price per square foot was $154.

Return on Investment (ROI) Analysis

1. Balsam Plan

   • Sale Price per Sq Ft: $328,000 / 1,500 sq ft = $218.67

   • Construction Cost per Sq Ft: $166,800 / 1,500 sq ft = $111.20

   • Gross Profit: $328,000 - $166,800 = $161,200

   • ROI: ($161,200 / $166,800) × 100 ≈ 96.6%

2. Liberty Plan

   • Sale Price per Sq Ft: $244,000 / 1,298 sq ft = $187.83

   • Construction Cost per Sq Ft: $145,000 / 1,298 sq ft = $111.70

   • Gross Profit: $244,000 - $145,000 = $99,000

   • ROI: ($99,000 / $145,000) × 100 ≈ 68.3%

Comparison to Market Averages

• Sale Price per Sq Ft: Both properties sold at a higher price per square foot ($218.67 and $187.83) compared to the Spartanburg median of $154.

• Time on Market: Both homes sold significantly faster than the average of 75 days, indicating strong demand.

  Redfin

Rental Statistics

The short-term rental market in Spartanburg, South Carolina, offers a variety of options for properties with 1,500 square feet or less. These rentals cater to diverse needs, from single travelers to small families, and are available through various platforms and property management services.

Rental Platforms and Listings

• Zillow features numerous single-family homes available for rent in Spartanburg. While not all are designated for short-term leases, some listings offer flexible rental terms. For instance, a 1,500 sq ft house may be listed at approximately $1,800 per month.

  Zillow

• Apartments.com provides a selection of short-term rental apartments in Spartanburg. While specific square footage details may vary, the platform offers filters to help prospective tenants find units that meet their size requirements.

  Apartments

• Zumper lists fully furnished short-term rentals in Spartanburg, including houses and apartments. While exact sizes are not always specified, many properties suitable for small families or groups fall under the 1,500 sq ft range.

  Zumper

Average Rental Rates

Rental rates for short-term properties in Spartanburg vary based on location, amenities, and property condition. While specific data for 1,500 sq ft homes is limited, general observations include:

• Monthly Rates: Short-term rentals, especially those that are fully furnished and include utilities, often command higher monthly rates compared to long-term leases. Properties under 1,500 sq ft may range from $1,500 to $2,000 per month, depending on factors such as proximity to downtown, property amenities, and lease flexibility.

• Weekly/Daily Rates: For properties available on a weekly or daily basis, rates can vary widely. Averaging these rates is challenging without specific listing data, but smaller homes or apartments may charge between $100 to $200 per day, with potential discounts for longer stays.

Considerations

• Availability: The availability of short-term rentals can fluctuate based on seasonal demand, local events, and market trends.

• Amenities: Properties offering additional amenities such as furnished interiors, inclusive utilities, and proximity to local attractions may command premium rates.

• Lease Terms: Short-term rentals often come with flexible lease terms, but it's essential to clarify the minimum stay requirements and any associated fees or deposits.

Conclusion

The Balsam and Liberty plans have demonstrated substantial returns, outperforming the local market in both sale price per square foot and time on market. These metrics underscore the effectiveness of our designs and pricing strategy in meeting market demand.

Conclusion

While specific rental rates for short-term homes of 1,500 sq ft or less in Spartanburg vary, prospective tenants can expect monthly rates ranging from $1,500 to $2,000, with daily rates averaging between $100 to $200. For the most accurate and current information, it's advisable to consult directly with rental platforms or property managers. The combination of robust economic development, job creation, and strategic commercial investments has propelled Spartanburg's housing market. Our proven track record of delivering desirable homes positions us to continue meeting the needs of this growing community.