For commercial real estate (CRE) investors eyeing multi-family properties in Myrtle Beach, SC, the market has shown some notable shifts between 2023 and 2024. While the overall sales volume has decreased, opportunities remain for investors who understand the nuances of current pricing trends and market activity. Below are the key insights drawn from recent CRE sales data, highlighting the performance across different property types in the multi-family sector.
Overall Market Activity:
- Total Sales:
In 2024, there were 44 sales of multi-family properties, a significant decrease from the 81 sales in 2023. This sharp drop in sales volume (down 45%) suggests that the Myrtle Beach market may be cooling, which could lead to more favorable buying conditions for those looking to invest at the right price.
Types of Multi-Family Properties:
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Apartments: The number of apartment sales dropped significantly from 13 in 2023 to just 2 in 2024. However, the average price for apartments decreased, falling from $871,376 in 2023 to $776,500 in 2024. This suggests a softening in prices, potentially due to the limited number of transactions, but the higher price point still reflects strong demand for larger multi-family properties.
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Duplexes:
Duplexes saw a significant decline in the number of sales, dropping from 50 properties sold in 2023 to just 27 in 2024. However, prices took a drop, with an average price of $392,379 in 2024 compared to $485,749 in 2023. Investors may find value in duplexes, especially as their prices remain relatively affordable despite the drop in volume. -
Manufactured Parks: Sales in Manufactured Parks have remained steady at 3 sales per year, but the pricing has increased significantly in 2024, with an average price of $1.1M compared to $775,000 in 2023. This indicates rising demand and appreciation in this niche market, making it a valuable opportunity for investors seeking high-growth potential despite the higher entry point.
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Other Property Types:
The "Other" category, which includes a variety of property types, saw an increase in sales from 4 in 2023 to 8 in 2024, with prices climbing higher. The average price for these properties was $1.34M in 2024, compared to $706,250 in 2023, suggesting that there is increasing demand in this segment. -
Quadplexes:
There was a decline in Quadplex sales, dropping from 8 sales in 2023 to 3 in 2024, but the average prices nearly doubled in 2024, jumping from $1.06M in 2023 to $1.83M. Investors seeking larger, more complex properties with higher returns may want to keep an eye on this segment as prices for these multi-family assets increase. -
Triplexes: Triplexes saw a drop in sales from 3 properties in 2023 to just 1 sale in 2024. The average price decreased from $569,500 in 2023 to $449,900 in 2024. This suggests a softening in prices, potentially due to reduced demand or limited inventory, making this a smaller market segment that could still align with niche investment strategies.
Price Trends:
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High Sales:
The highest sales prices were observed in the Quadplex category, with a top sale of $4.24M in 2024, slightly higher than the $3.5M recorded in 2023. For investors, this could indicate strong returns for larger multi-family investments in Myrtle Beach, despite a lower volume of transactions. -
Low Sales:
For Duplexes, prices fell significantly in 2024 with a low sale price of $30,000, compared to $115,000 in 2023. This drop in the low end of the market may present opportunities for investors to acquire properties at lower costs, particularly for those seeking value buys.
Investment Potential:
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Price Stability: Duplexes and Quadplexes present relatively stable opportunities with consistent or increasing prices, making them attractive to investors seeking reliable, income-generating properties. Despite the decrease in the number of transactions, these segments of the market show potential for solid returns.
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Apartments might be a more competitive space, with fewer transactions and a higher average price, but the demand for these larger assets remains strong. Investors with a long-term outlook may find potential here despite the current low number of sales.
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Manufactured Parks have become more affordable in 2024, presenting opportunities for investors looking for affordable, smaller-scale projects that require less capital upfront.
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The "Other" category shows strong price growth, indicating that non-traditional multi-family investments are becoming increasingly popular in the Myrtle Beach market.
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The overall slowdown in multi-family property sales could be seen as an opportunity for negotiation and value purchases, especially for properties categorized as "Other" or Manufactured Parks.
Conclusion for Investors:
While the Myrtle Beach multi-family real estate market has experienced a drop in sales volume, the data suggests that there are still opportunities for investors to find good value in a variety of property types. Duplexes and Quadplexes offer relatively stable returns with higher average prices, while Manufactured Parks and Other properties present affordable entry points and potential for growth. As sales volume decreases, it could also present opportunities to negotiate better deals, especially for smaller or less conventional property types.
For those looking to invest in Myrtle Beach, understanding these trends and strategically focusing on high-potential property types will be key to success in the evolving market.
Are you ready to dive deeper into the market? Let us know if you’d like more specific information on any property type or investment strategies!
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Disclaimer: All information given is meant to be educational. I am only passing on historical information shared with me by owners, rental companies, and various publications. I am not guaranteeing these numbers, nor can I guarantee future rentals or appreciation. This information is not intended to replace your own research, or to provide legal, investment, or financial advice. Please consult an attorney for legal advice.