Here’s how much rent and housing costs shot up in Myrtle Beach during the pandemic
The pandemic sent thousands into financial shock last spring. Now, they could face escalating expenses as Myrtle Beach housing costs have shot up in the last year.
Since the onset of the pandemic, the average rent price has grown 8.7% in the city, according to findings in a report from Apartment List, which analyzes the rental market across the country. The report found the median rent in Myrtle Beach is $756 for a one-bedroom apartment and $961 for a two-bedroom apartment.
With the immediate public health and economic impacts of the pandemic came a slower supply chain process which interrupted construction. It also brought a mass exodus of people from big cities to small leisurely towns much like Myrtle Beach.
As remote work became the norm for many last spring and it became clear the pandemic would be a long-term obstacle to normal life, many workers took a hard look at the places they lived, according to Igor Popov, chief economist at Apartment List.
“We’re thinking, ‘Where do I want to be given that maybe now I can work remotely?’” Popov said. “‘Where do I want to be given that I would like some space, some amenities by way of a beach and great weather.’”
Remote workers flock to the beach, boosting demand
January’s rental report from Apartment List concluded the rental prices across the country were converging, meaning the gap between the most expensive cities and least expensive cities grew smaller.
With South Carolina situated near hotspots for tech like Raleigh and various Florida cities, Popov said it’s not uncommon for renters to be attracted to S.C. cities including Myrtle Beach, which has been one of the fastest-growing cities in the country in recent years.
“Myrtle Beach is one of the prime examples of a place that maybe was a bit out of the spotlight in the last 10 years, but is finding a lot of rental demand and the pandemic actually driving prices [to] rise significantly compared to what we’ve seen in previous years,” he said.
It’s tough to say whether the changes to the rent prices are permanent or even long-term, especially given the “wild time” the rental market has seen over the last year, Popov said.
“We could see some of that heat start to dissipate, but I could also see a world, frankly, where a lot of companies say ‘Hey, we don’t need you in the office and if you want to take your laptop, live in Myrtle Beach and code and dial into the team meeting, do your thing,’” Popov said.
Home builders also see prices spike
Renters aren’t the only ones who could be strapped to pay for housing — the cost to build a 2,000 square foot home has soared by $16,000 in lumber costs alone, according to the National Association of Home Builders. Between some companies halting lumber production during the pandemic and certain tariffs on lumber imports, the cost skyrocketed during the last 10 months.
“That was basically overnight,” said Mark Nix, executive director of the South Carolina Home Builders Association.
Overall, the cost to build a home in the area could be between 5-10% higher than it was in the beginning of 2020, according to an estimate by Jason Repak, president of Hudson Builders and the Horry Georgetown Home Builders Association. Things like windows and appliances are taking longer to be delivered to builders, meaning it now takes longer to build a home.
Need for affordable housing increases
The cost to build a home in growing Myrtle Beach highlights the need for affordable housing in the area, according to Repak. For the average worker in Horry County, housing costs outweigh wages significantly and more Horry County renters have been requesting rental assistance during the pandemic.
“It’s a tricky situation, it’s a very tough situation,” Repak said. “In my opinion, affordable housing is already a major issue in the country for people that are looking for their first homes and all the way through to people looking for their home to retire in.”
Even as housing costs jump, Repak said he doesn’t expect the population moving from the northeast to the Myrtle Beach area to slow down. Similarly, he expects the housing market and construction industry to bounce back because the demand for housing in Horry County has been consistently strong.
For now, home builders are looking hopefully toward the spring.
“What we’re hoping for is by late spring we’ll see softening of supply issues going forward because we’re not seeing any lack of demand for it,” Nix said.
This story was originally published January 25, 2021 at 1:00 PM.
