Why South Carolina’s DSCR Real Estate Market Is Booming in 2025

South Carolina’s real estate market continues to rise in 2025, making it a top target for DSCR loan investors focused on growth and rental income.

The South Carolina DSCR real estate market is one of the most promising investment opportunities of 2025. This market is gaining serious momentum, driven by population growth, strong rental demand, and investor-friendly conditions. It’s not just growing, it’s outperforming the national housing market in nearly every category that matters to real estate investors. For DSCR (Debt Service Coverage Ratio) loan borrowers, understanding where momentum is headed can make the difference between good cash flow and great returns.

Why the South Carolina DSCR Real Estate Market Matters in 2025?

South Carolina currently leads the nation in net in-migration, and it’s no mystery why:

✅ Affordable cost of living

✅ Pro-growth, business-friendly policies

✅ Remote work expansion into suburbs and rural towns

These trends have pushed demand across the state, fueling both homebuying and renting. The result? South Carolina earned an “A” rating in Realtor.com’s housing report card, thanks to a rare mix of affordability and homebuilding activity.

Why DSCR Investors Should Pay Attention

For investors focused on long-term rental income and DSCR performance, here are three reasons South Carolina deserves a close look:

1️⃣ Price Growth Without the Bubble

While national home prices are flat or falling in some areas, South Carolina saw 5.6% year-over-year growth in Q4 2024. That’s steady appreciation without overheating.

2️⃣ Supply Is Catching Up, But Not Too Fast

New construction is active, yet the wave of new residents keeps the market competitive. This balance helps preserve home values and stabilize rental demand.

3️⃣ Rent Demand Remains Strong

Thanks to population growth and limited turnover, many investors are seeing low vacancy rates and positive DSCR ratios, even in today’s rate environment.

📉 Want more market insights? Watch our video on the Top 3 Cities to Invest with a DSCR Loan in 2025.

Not All Markets Are This Favorable

Nationally, many investors are facing headwinds:

⚠️ Inventory remains tight due to rate lock-in

⚠️ Home sales are still 25% below 2017 levels

⚠️ Markets like Austin, Tampa, and Phoenix are cooling

But South Carolina is defying the trend. Its fundamentals, migration, affordability, and buildable land make it one of the few markets where the math still works.

Final Take: South Carolina Is DSCR-Friendly

If you're building a rental portfolio in 2025, South Carolina offers a compelling mix of growth and stability. For DSCR loans, that means better coverage ratios, predictable rent rolls, and properties that actually cash flow.

 Want to know if a South Carolina deal qualifies for a DSCR loan?

👉 Book a Strategy Call or request your Free Property Analysis today.

Resources

• Anchor Housing Monitor – May 2025 Insights

• Zillow & Redfin Market Data – April 30, 2025.

• National Association of Realtors (NAR) – Q1 2025

• U.S. Census Bureau – December 31, 2024