The Challenge Facing the Residential Rental Industry
This week, I was reminded of the biggest challenge confronting the residential rental industry: supply outweighing demand. This issue is not just national but deeply impacts five counties in our service area here in the Upstate of South Carolina (Greenville, Spartanburg, Anderson, Cherokee, Oconee and we are moving into Laurens County). As property managers and landlords, we must address this head-on.
As we move into 2025, the oversupply of rental units continues to grow, and unfortunately, there’s no quick or easy fix. Just take a drive around the Upstate, and you’ll see it for yourself—new “build-to-rent” communities and apartment complexes rising at an unprecedented pace. From single-family units to multifamily developments, these projects are flooding the market, and as they come online, the pressure to fill them quickly is immense. Investors behind these builds need returns, so they’re offering incentives that smaller landlords simply can’t match.
Currently, there are approximately 5,000 vacant rental units (per Zillow) in our service area, with about 30% of those being new builds. These new properties are offering enticing move-in deals, making it difficult for existing landlords to compete on perks alone. But here’s the reality: smaller investors don’t need to match these incentives dollar-for-dollar. In fact, it’s neither rational nor sustainable.
A Strategy for Staying Competitive
To remain strong as landlords and real estate investors, we must shift our focus to what we can control. Offering clean, safe, and well-maintained living spaces at competitive prices is now more important than ever. We must also recognize that the rental rates that skyrocketed over the past three years are now stabilizing, a natural consequence of the law of supply and demand.
However, don’t be discouraged. Property values have also climbed rapidly in recent years, creating opportunities for investors to build equity even as rental income growth slows.
The Human Factor at HTSI
At Houses and Then Some, we’ve doubled down on what we call the “human factor.” We believe that people want to talk to people. That’s why we prioritize answering calls live whenever possible and returning calls promptly when we can’t. This personalized approach is critical in an increasingly competitive market.
As landlords and property managers, we have an opportunity to adapt, innovate, and thrive—even in a challenging environment. If you’re ready to take your property management strategy to the next level, we’re here to support you. Give us a call today at 864-395-6538.
