Why Myrtle Beach renters could see a ‘surprise’ 21% price hike on new leases this summer
It’s not uncommon for renters across the nation to renew their lease come summer, but this year, renters in Myrtle Beach could be shocked to see what they find: a potential increase of 20% or more in rent costs.
Rent costs in Myrtle Beach have increased 21% since this time last year, according to the rental analysis firm Apartment List. In June alone, rent has increased 6.1%, nearly triple the national average increase of 2.3%.
“That’s what I think many people are feeling right now, is that surprise of the bill, because the market is in such a different place than it was a year ago when these leases were initially signed,” said Igor Popov, chief economist at Apartment List.
To put that in context, a 6% increase in rent costs over an entire year would indicate strong rent growth, according to Popov. Myrtle Beach saw that level of growth in just one month.
The median rent for a one-bedroom apartment in Myrtle Beach is $848, while the median for a two-bedroom unit is $1,078, according to the report.
Pandemic relocations and Horry County’s growth contribute to price hikes
The timing of this rent increase can be attributed to a perfect storm of several factors. The rise of remote work during the pandemic and some companies allowing an optional return to the office has pushed people toward the beach, especially to places like Myrtle Beach, where housing costs are cheap compared to other urban areas. Combine that with the fact that summer costs typically grow from off-season costs, and the rapid growth in Horry County even before the pandemic hit, and a dilemma presents itself to renters.
“If you’re a renter in a market like Myrtle Beach where rents are really soaring, it’s a tough position to be put into,” Popov said. “There’s no doubt about it.”
He added that renters looking to move away from the area to avoid high housing costs would likely have to shoulder the cost of moving, which typically involves hundreds, even thousands, of dollars in upfront costs. Renters, he said, will have to do the calculations to see if it’s worth the long-term savings to move away.
The monthly increase should be analyzed with nuance, said Bryan Grady, chief research officer at the South Carolina state housing authority. Month-to-month comparisons can have a certain level of variation, but the 21% increase in rent comparing this year to last year is “certainly alarming,” Grady said, especially considering the labor force in Horry County is largely based in low-paying hourly jobs in tourism and hospitality.
Reports and analyses of wages and housing costs in the Myrtle Beach area have concluded the two are far out of balance, with workers in Horry County earning an average of $11 per hour compared to the $19 per hour that would be necessary to afford a two-bedroom apartment.
Myrtle Beach joins other South Carolina cities in seeing an increase in rent costs, partially due to pandemic-era movers looking for a lower cost of living. But while Myrtle Beach’s rent increased an average of 21% in the last year, Columbia’s grew by only 14.6% and Mount Pleasant’s rent grew by 20.6%, according to the report.
In South Carolina as a whole, rent increased an average of 11%, well ahead of the national average of 8.4%. But even if people try to escape the rising costs in South Carolina, rent is rising virtually everywhere, Popov said.
“There aren’t a lot of affordability havens,” Popov said.
Affordable housing needed in Myrtle Beach, but solutions aren’t quick
The solutions to Horry County and Myrtle Beach’s housing problems won’t come overnight, and Grady urged struggling renters to apply for rental assistance programs and talk with their local officials about housing issues.
“There’s certainly a need for people to speak up,” Grady said. “Make sure the elected officials are aware of situations that people in their community are experiencing. That’s certainly not a silver bullet, it’s just part of how a solution like this comes about. Unfortunately there is no instant solution here.”
The City of Myrtle Beach has a workforce housing project in the works, aimed at housing government and hospitality employees at an affordable price point within city limits. But that site is still in the works, and it won’t be move-in ready until June 2022 at the earliest.
Popov also said it’s important for renters and landlords to communicate and come up with payment plans or other ways to avoid eviction, which are set to begin again after the federal eviction moratorium expires at the end of the month.
This story was originally published July 9, 2021 at 3:11 PM.
