Issue link: http://savannah.uberflip.com/i/1444971
30 Real Estate: Residential and Commercial Residential The real estate market for residential property remained very healthy in 2021. In Chatham County, a total of 7,900 residential units (all types) sold, a gain of 17% from 2020. The median residential home price was $250,000, a gain of 8.7% from 2020. The market share of units sold in the $200,000 to $500,000 range increased to 54% from 48% in 2020. Conversely, the share of homes selling at or below $200,000 declined to 34% from 42%. Limited availability of inventory pushed housing prices up significantly in 2021 and is expected to be a factor again in 2022. Median sale price is expected to increase 5% to 7% in 2022. Multifamily residential construction eased in 2021, dropping to about $15 million in Chatham County from $36 million in the previous year. In an emerging development, institutional investors are adding substantial depth to the offerings of multifamily housing and are expected to continue that trend in 2022. In the Savannah MSA, the number of building permits issued for single family homes increased 32% in 2021. The average value of a permit issued increased 7% to $258,345 in 2021. Residential construction is expected remain strong, with a 12% to 15% in increase in the number of building permits issued in 2022. Commercial Vacancy rates in metro Savannah's office and commercial market continue to decline. By the end of 2021, the commercial vacancy rate fell to 8.7% of the nearly 4 million square feet of available inventory in the Savannah MSA. Office market rental rates increased 3.5% to $22.13 per square foot. Office space rental rates were $24.27 per square foot in the downtown central business district. Similar gains are anticipated for 2022. Commercial operations along Broughton Street should benefit from the City's investment in infrastructure once the projects are completed. Office absorption continues to move southward in the vicinity of Forsythe Park. Further, the midtown area and the Starland District along Abercorn and Bull streets continue to attract interest and investment in restaurants and entertainment venues. The commercial market remains strong and vibrant in important districts and retailing corridors in the region. At the western end of the Savannah riverfront district, the $500 million Plant Riverside District project continues to the final touches of development. About 700 new jobs are created to support this major attraction for local residents and visitors. Regent Partners' and Mariner Group's development of the $600 million, 54 acre mixed use Eastern Wharf project continues. The development hosts single family homes, townhouses, luxury apartments along with 40,000 square feet of retail space and 80,000 square feet of high-end office space available upon completion of the project. Hyatt's 193- room Thompson Savannah hotel opened its doors in August 2021. The plan includes extension of the Riverwalk to connect to the existing riverside walkway to the extension of the downtown riverfront. Riverworks, an upscale residential community integrated into the Eastern Wharf's commercial and entertainment hub, is now leasing for 2022. The New Hampstead development in western Chatham mostly between Fort Argyle Road and Little Neck Road is continuing in 2022 on new residential development. Upon build-out, the 4,300 acre project will include parks, schools, 9,500 residential units, and 1.7 million square feet of commercial development adding about $4 billion in property value to the area. Development continues in Pooler with the 170 acre Pooler Towne Center development near I-16 and the Pooler Parkway. Much of that activity is driven by population growth and infrastructure development in the immediate area, but also is expected to include investment in accommodations, retail, and other services.