Construction Pipeline Grows Behind Rising Enrollment, Large-Scale Projects

Key takeaways from a report by Colliers regarding student housing in South Carolina:

Enrollment growth accelerated at the state’s major universities after a post-Covid lull.

Absorption remains modest as older properties face stiff competition from newer, better-located developments.

Major projects in Clemson and Columbia drove the construction pipeline to a 10-year high.

After a modest slowdown, universities across the state saw enrollment back on the rise, driving developers to break ground on major student housing projects, Colliers said.

It said core spaces headlined new starts in both the Clemson market, breaking ground on the 1,300- bed Hub at Clemson, and in Columbia with oLiv Columbia, a 23-story student project joined by a 27-story market-rate tower in a prime downtown location.

Vacancy and asking rents largely held steady statewide as deliveries have mostly tracked with enrollment growth at the state’s major universities, according to Colliers, the largest full-service commercial real estate firm in South Carolina.  

Notably, Colliers added, University of South Carolina’s Development Foundation continues to acquire downtown housing sites, potentially creating future competition for private developers.

Investment activity saw new record sale prices as investors chase rent growth potential, with Empire Columbia headlining transactions at $137,061 per bed.