31 Oct Residential Market Opportunity Analysis for Edgefield, South Carolina
Location: Edgefield, Sout Carolina
Client: Town of Edgefield, South Carolina
Lead Consultant: KB Advisory Group
Services provided: Residential Market Opportunity Analysis
KB Advisory Group prepares residential market opportunity analysis for the town of Edgefield, SC
KB Advisory Group (KB) Scope
The town of Edgefield, South Carolina engaged KB Advisory Group to undertake a residential market opportunity analysis to better understand Edgefield’s underlying economic, demographic, and real estate characteristics and how they relate to opportunities for housing.
The KB Advisory Group team of urban planners, real estate market analysts, and real estate implementation experts developed this report to provide an overview of residential supply and demand, particularly in reference to housing opportunities in the town of Edgefield, particularly in the town center area. The report included a baseline assessment of the demographic, economic, and housing supply baseline conditions, a housing demand forecast, and a senior housing needs assessment.
This study examines the housing market of the Town of Edgefield, South Carolina, which is the county seat of Edgefield County. Edgefield County three other incorporated municipalities: Trenton, Johnson, and a portion of North Augusta. The town of Edgefield and Edgefield County are part of the Augusta-Richmond Metropolitan Statistical Area (MSA).
While the purpose of the study was to assess housing demand for the town of Edgefield, it focused more on the town’s larger market area context of Edgefield County. Edgefield County was considered the Primary Market Area, the geography from which primary demand for Edgefield’s housing market was expected to come. It also considered the Augusta-Richmond Metropolitan Statistical area (MSA) as a point of comparison.
In addition to baseline demographic, economic, and housing conditions, KB analysts conducted a housing demand forecast and found that demand for new housing units would be concentrated in lower income households, with 72% of demand of new housing units coming from households earning less than $50,000. In terms of affordability, this corresponds to a home value of $230,000 or less, or an apartment rent of $1,250 or less. Based on current construction, material, land and labor costs, these price points represent the low end of the average cost to build a conventional, new market-rate single-family home, townhome or apartment.
KB analysts recommended the town consider subsidies, like tax credits for affordable housing or for historic structure rehabilitation, to aid homebuilders in offering more affordable product.