The Myrtle Beach area’s building boom is growing at a slowing rate. Has growth plateaued?

During 2023, the Myrtle Beach area’s real estate economy was hit hard by inflation and interest rates, as fewer homes were sold than in previous years.

Homeowners were also less willing to place their homes on the market, creating a shortfall in supply.

However, the real estate squeeze in 2023 did not stop people from moving to the Horry County area recently, as Myrtle Beach is one of the most moved-to cities in the United States. This surge in population, typically retirement and middle-aged individuals and couples, also coincided with a construction boom.

Building new homes helped the supply problem in 2023, and according to county data, the number of building permits issued in Horry County has exploded since 2018. However, while the number of permits issued in Horry County is at a six-year high, the pace of construction might be leveling off across the Grand Strand.

According to Horry County building permit data, the county issued 17,552 permits during the 2023-2024 fiscal year compared to 17,326 during the 2022-23 fiscal year. While a one percent increase from year to year, it is the lowest increase in consecutive years since the 2019-20 fiscal year, which saw a three percent rise in issued permits from the previous year.

The growth rate is also far below the 19 percent increase in permits issued between the 2019-20 and 2020-21 fiscal years, which increased from about 16,000 to more than 17,000.

While the total number of permits granted in 2023-24 rose, based on the data, Horry County also saw a drop in the construction value of permits issued. During the 2023-24 fiscal year, build permits issued had a construction value of $1.54 billion, a six percent decrease from the $1.63 construction value during the 2022-23 fiscal year.

Here’s the data:

• Horry County issued 17,522 permits during the 2023-24 fiscal year, a one percent increase from the 2022-23 fiscal year.
• Horry County issued 17,326 permits during the 2022-23 fiscal year, a two percent increase from the 2021-22 fiscal year.
• Horry County issued 17,008 permits during the 2021-22 fiscal year, a seven percent increase from the 2020-21 fiscal year.
• Horry County issued 15,894 permits during the 2020-21 fiscal year, a 19 percent increase from the 2019-2020 fiscal year.
• Horry County issued 13,396 permits during the 2019-20 fiscal year, a three percent increase from the 2018-2019 fiscal year.

The data included permits for residential, commercial, demolition, and other construction projects. The Horry County fiscal year began July 1, 2023, and ended June 30, 2024.

Builders and construction companies say that 2024 was a good year, similar to 2023, but did not see the same growth in business as in previous years. Autry Benton is a Conway City Councilman who runs Benton Concrete & Utilities LLC. Benton, a commercial contractor who works on municipal projects, said his firm saw business at similar levels to previous years and didn’t have to conduct any layoffs.

However, Benton said the company didn’t add many employees either and just maintained its current position. He added that the cost of concrete for his firm has gone up, claiming that 20 percent of the higher price of a building passes on to the consumers.

Jason Repak’s outlook on 2024 was somewhat similar. The President of Hudson Custom Homebuilders and a past president of the Horry Georgetown County Home Builders Association , Repak, said his company had the same number of customers as the previous year. However, he noted that some projects were canceled or delayed due to interest rates or needed additional financing.

While common for custom home builders, Repak said his company hadn’t had projects delayed or canceled in a while, although he’s not concerned.

“We didn’t see any change really in our business from the people that approached us,” he added. “We’ve seen a few of those, but nothing that I would call out of expectations.”

Repak added that construction costs are still causing concern for his firm. While the price of lumber has lowered slightly, Repak said that other construction costs went up again in 2024, as in 2023 , although at a slower rate.

In July 2024, the business intelligence firm Gordian published a concrete cost report stating that the cost of ready-mix concrete and crushed stone aggregate concrete had returned to 2019 levels. However, the report also found that the cost of concrete blocks and hot mix asphaltic concrete held steady or slightly dipped after previous price increases in 2023 and 2024.

While inflation, interest rates, and increased cost of raw materials could hamper more buildings in the area, Horry County still sees development at higher levels than before the coronavirus pandemic. According to Horry County’s data, it issued less than 13,000 during the 2018-2019 fiscal year with a construction value of less than $800 million.

Compared to 17,552 issued in 2023-24 with a construction value of $1.5 billion, developers still seem keen on building in Horry County. The Myrtle Beach area is also seeing major development projects get underway. Plans to redevelop the closed Myrtle Beach Speedway and Inlet Square Mall are either already in the works or scheduled to begin soon.

While development could be plateauing, the higher than pre-pandemic levels still have some real estate professionals optimistic about the area, particularly as more people move to the Grand Strand.

In a February 2024 interview, 2024 Coastal Carolinas Association of Realtors President Brianne Bender anticipated that 2024 would be a better year than 2023 despite difficulties during the previous year. Bender added that the population growth would prevent any severe slowdown for builders and real estate professionals.

“South Carolina is still, year over year, one of the highest migrated to places in the entire country. Myrtle Beach by itself had just over double the amount of move-ins to move-outs last year than any other area in the state,” Bender said in a February 2024 interview . “That’s also why we feel pretty confident that we’re still going to be experiencing that growth next year and seeing these sellers come back on the market now that things have calmed down slightly.