SC has some of the most overvalued housing markets in the nation, US News & World Report says

Patrick McCreless
Rich Pedroncelli/AP

Three housing markets in South Carolina are among the most overvalued in the U.S. in terms of buying, renting or both, according to U.S. News & World Report.

The national publication recently compiled a report on the most overvalued markets to buy a home and rent a home in the U.S., following the jump in mortgage rates and inflation last year.

According to the Department of Housing and Urban Development, households that spend more than 30% of their gross monthly incomes on a place to live are “cost burdened” because it leaves less money for spending on other necessities like food, clothing and medical care.

The report found that the top 20 most overvalued metropolitan statistical areas (MSAs) in the U.S. all had payment-to-income ratios of more than 40%. And for renters, the top 20 MSAs were overvalued with an income-to-rent ratio significantly above the national median of 36%, the report states.

South Carolina

The Myrtle Beach-Conway-North Myrtle Beach MSA ranked as the 20th most overvalued place to buy a home in the U.S., with a 40.1% payment-to-income ratio.

For most overvalued places to rent, the Myrtle Beach-Conway-North Myrtle Beach MSA ranked much higher at ninth place, with a 39.8% payment-to-income ratio.

Two other South Carolina MSAs also ranked on the overvalued places to rent list — Charleston-North Charleston at 15th and Greenville-Anderson-Mauldin at 20th, the report shows. Charleston showed a 35.9% payment-to-income ratio, while Greenville had a 34.4% payment-to-income ratio.

Rent rose by 10.4% in South Carolina on average in 2022, according to RentHub, an online real estate data and analytics platform. The state ended the year with a median rent of $1,800 in December, up from $1,700 during the same month in 2021.

The state also saw a 15.4% jump in home prices in 2022, year over year, according to South Carolina Realtors statistics.

South Carolina overall attracted many new residents in 2022 and was the third fastest-growing state that year, U.S. Census data shows. And it has been that high demand, combined with low inventory, which has helped push up housing and rental prices in the state, industry experts say.

U.S. News methodology

The data for the U.S. News and World Report rankings came primarily from the U.S. News Housing Market Index, an interactive platform providing a data-driven overview of the housing market nationwide. This data is sourced from a variety of government and private sources, such as the U.S. Census, Zillow and the National Association of Home Builders.

For this particular ranking, the report used data from November 2022, since that is the most recent month that the U.S. News Housing Market Index ha comprehensive data.

U.S. News & World Report rankings

Here is a list of the 20 most overvalued MSAs in the U.S. to buy home.

  1. San Francisco-Oakland-Hayward, CA

  2. Los Angeles-Long Beach-Anaheim, CA

  3. San Diego- Carlsbad, CA

  4. Riverside-San Bernardino-Ontario, CA

  5. San Jose-Sunnyvale-Santa Clara, CA

  6. Boise City, ID

  7. Sacramento--Roseville--Arden-Arcade, CA

  8. Greeley, CO

  9. Salt Lake City, UT

  10. Seattle-Tacoma-Bellevue, WA

  11. Fort Collins, CO

  12. New York-Newark-Jersey City, NY-NJ-PA

  13. Portland-Vancouver-Hillsboro, OR-WA

  14. Colorado Springs, CO

  15. Orlando-Kissimmee-Sanford, FL

  16. Phoenix-Mesa-Scottsdale, AZ

  17. Boston-Cambridge-Newton, MA-NH

  18. Denver-Aurora-Lakewood, CO

  19. Las Vegas-Henderson-Paradise, NV

  20. Myrtle Beach-Conway-North Myrtle Beach, SC-NC

Here is a list of the 20 most overvalued MSAs in the U.S. to rent a home.

  1. Riverside-San Bernardino-Ontario, CA

  2. San Diego-Carlsbad, CA

  3. Los Angeles-Long Beach-Anaheim, CA

  4. Orlando-Kissimmee-Sanford, FL

  5. New York-Newark-Jersey City, NY-NJ- PA

  6. Miami-Fort Lauderdale-West Palm Beach, FL

  7. Tampa-St. Petersburg-Clearwater, FL

  8. Sacramento--Roseville--Arden-Arcade, CA

  9. Myrtle Beach-Conway-North Myrtle Beach, SC-NC

  10. Cape Coral-Fort Myers, FL

  11. North Port-Sarasota-Bradenton, FL

  12. Boise City, ID

  13. Phoenix-Mesa-Scottsdale, AZ

  14. Colorado Springs, CO

  15. Charleston-North Charleston, SC

  16. Greeley, CO

  17. Atlanta-Sandy Springs-Roswell, GA

  18. Boston-Cambridge-Newton, MA-NH

  19. Las Vegas-Henderson-Paradise, NV

  20. Greenville-Anderson-Mauldin, SC

Advertisement