The latest trends in Folly Beach and Charleston Beach housing markets.
What’s happening with Folly Beach sales and some of the other Charleston Beach real estate markets? Let’s dive into it today.
Starting with Folly Beach, there’s currently a significant amount of inventory available. Homeowners on Folly Beach made an interesting decision in January of this year when they voted to implement a cap on short-term rentals. Short-term rentals are defined as any properties rented for less than 30 days. To engage in short-term rentals, homeowners must apply for a business license for their property. However, those applying for these licenses, who are also homeowners on Folly Beach, are now placed on a waitlist until the total number of short-term rentals falls below a certain threshold.
This policy change has had a noticeable impact on home sales. Many individuals purchase properties on Folly Beach with the intention of using them for personal use and renting them out as short-term rentals. Consequently, the number of closed sales on Folly Beach this year has seen a significant decline, down by 70% when compared to the previous year.
Now, let’s turn our attention to other Charleston Beach areas, such as Isle of Palms. Home sales on Isle of Palms have also decreased, with a decline of approximately 33%. Kiawah Island is experiencing a similar trend, with a 25% drop in home sales. The average decrease in closings throughout Charleston County stands at 22% for this year. Isle of Palms and Kiawah Island are aligned with these figures. However, there is a notable exception: Sullivan’s Island, which has historically limited short-term rentals, is bucking the trend. Sullivan’s Island has actually seen a 20% increase in closed sales between last year and this year.
The question arises: does limiting short-term rentals genuinely affect property values? It appears that in the short term, it does have a substantial impact. Take Sullivan’s Island as an example, where property values have increased along with the number of closings, despite the restrictions on short-term rentals.
As for the future of Folly Beach, it remains uncertain at this point. Real estate is unpredictable over the long term, and none of us possess a crystal ball. Nevertheless, it’s intriguing to observe the varying trends in different beach areas.
If you have any inquiries regarding beach properties in Charleston or any other aspects of our beautiful city, please don’t hesitate to call or email me and my real estate team. We’re here to assist you.