South Carolina is experiencing a period of profound change in its affordable housing sector, shaped by a series of key trends that are set to transform the state’s housing landscape. As an experienced nonprofit organization at the heart of this industry, Midlands Housing Trust Fund (MHTF) is here to guide you through these significant developments.

Emerging Affordable Housing Trends

The affordable housing sector—in line with other industries—is being shaped and redefined by societal, economic, and technological evolutions. As we examine the future, there are several pivotal trends in affordable housing set to revolutionize the sector in South Carolina.

Expansion of Public-Private Partnerships

Public-private partnerships (PPPs) are emerging as a potent and reliable strategy for affordable housing. With public budgets under increasing pressure and housing demands escalating, public entities are finding value in aligning with private organizations. This collaboration is playing an essential role in bridging the funding gaps that often hinder affordable housing projects.

Such partnerships bring together the strengths of both sectors: the public sector’s ability to effect regulatory changes and ensure community welfare, combined with the private sector’s capacity for innovation, efficiency, and capital investment. This cooperative approach is vital in ensuring affordable housing projects not only reach completion but are also successful in reaching the communities most in need. Jeff Larimore, Executive Director for Midlands Housing Trust Fund says, “A growing number of companies and institutions have an expanding presence in South Carolina. These organizations can invest equity in SC-based Community Development Financial Institutions (CDFIs), such as the Midlands Housing Trust Fund, to create the lending capacity to effect positive change.”

Adoption of Green Building Practices

Sustainability has become a key focus in the construction industry, and affordable housing is no exception. Developers are increasingly adopting green building practices, a trend driven by both environmental consciousness and economic considerations.

Incorporating energy-efficient features into housing projects is not only beneficial for the environment but is also an effective strategy for keeping housing affordable in the long run. Energy-efficient homes translate into lower utility bills for residents and fewer maintenance demands, contributing to overall affordability. Additionally, these practices align with evolving green building regulations and could open up avenues for funding and incentives aimed at sustainable development. For instance, the Inflation Reduction Act passed at the end of 2022 offers serious tax incentives for developers to build energy-efficient housing.

Increased Use of Technology in Housing

Technology is no longer a peripheral element in affordable housing—it’s rapidly becoming a central pillar. The adoption of advanced building technologies—such as modular and prefabricated construction—is streamlining housing development, reducing costs, and minimizing construction timelines.

Simultaneously, smart home features—from energy-saving appliances to advanced security systems—are enhancing the quality of life for residents. They’re making homes more comfortable, secure, and efficient, while also contributing to long-term affordability through energy savings.

Furthermore, the application of technology extends beyond the physical aspects of housing. Data analytics is being leveraged to better understand housing needs, market trends, and operational efficiency. Property management software is improving the management of affordable housing assets, driving efficiency, and enabling a better resident experience.

These trends are reshaping the affordable housing landscape both in South Carolina and across the United States as a whole, and promise to enhance the quality, accessibility, and long-term sustainability of affordable homes in the state. Now, let’s take a look at some of the affordable housing trends specific to South Carolina.

Navigating the Unique South Carolina Affordable Housing Scenario

South Carolina’s affordable housing landscape is deeply influenced by a distinctive array of factors, each contributing to the unique challenges and opportunities in the state.

Addressing Urban and Rural Housing Needs Equally

South Carolina is faced with the complex task of accommodating the affordable housing requirements of its rapidly urbanizing areas, such as Charleston and Columbia, while not neglecting the needs of its rural communities. The state is witnessing a surge in population growth and economic development in its urban centers, which is escalating the demand for affordable housing. The challenge here is the shortage of suitable land for development, rising construction costs, and the need to balance density with livability.

Conversely, rural communities in South Carolina have a different set of housing challenges. These areas often grapple with issues like aging housing stock, inadequate infrastructure, lower income levels, and limited access to housing finance. Developing affordable housing in these regions requires a nuanced understanding of these distinct factors and creating solutions tailored to these needs.

Finding the right balance in addressing both urban and rural housing needs is crucial for promoting equitable housing development across the state. This calls for innovative housing policies and strategies that consider the unique characteristics and requirements of these diverse communities.

Climate Resilience in Housing Design

As a state with substantial coastal regions, South Carolina faces a growing threat from climate change. Sea-level rise, increased frequency of extreme weather events, and coastal erosion are realities that the state must address in its affordable housing plans. It’s essential that housing solutions are not only affordable but also resilient to these environmental changes.

Building designs that can withstand extreme weather conditions are becoming increasingly important. This involves utilizing resilient construction materials, adopting designs that minimize damage from flooding, and incorporating energy-efficient features to mitigate the impact of heat waves and other severe weather.

Creating climate-resilient affordable housing necessitates a multi-disciplinary approach, bringing together expertise in environmental science, urban planning, architecture, and housing policy. This collaborative effort can ensure that affordable housing in South Carolina is sustainable, resilient, and affordable in the long term.

Capitalizing on Opportunity Zones

South Carolina has numerous designated Opportunity Zones, which present exciting prospects for affordable housing. Created as part of the Tax Cuts and Jobs Act of 2017, these zones offer substantial tax incentives for investors who make long-term investments in these economically distressed areas.

Investors can defer, reduce, or even eliminate capital gains taxes on investments made in Opportunity Zones, providing a compelling incentive to invest in affordable housing projects within these zones. This offers a dual benefit: it drives investment in affordable housing and stimulates economic revitalization in under-served communities.

Leveraging the potential of Opportunity Zones requires a deep understanding of the regulatory landscape, strategic project selection, and effective community engagement. It’s an exciting frontier in the affordable housing landscape of South Carolina, offering the potential to harness private capital for public good.

Interested in learning more about the benefits of investing in affordable housing? We can help! Midlands Housing Trust Fund (MHTF) is dedicated to improving South Carolina communities by expanding access to quality affordable housing. We provide a variety of loan products to housing developers and contractors for the purpose of creating, rehabilitating, and maintaining affordable housing for households earning less than 80% of the Area Median Income. Thanks to flexible lending limits and competitive loan rates, MHTF’s business model presents an attractive alternative to conventional retail banking. Since 2012, we are proud to have provided more than $3 million in affordable housing financing, thereby creating or preserving 512 housing units and improving the lives of over 1,200 individuals. 

Contact us today for more information about how MHTF can serve your community, or consider investing in our work.