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25 continuing a trend since 2018 at which time 51% of homes sold were in this range. Limited supply of inventory pushed prices up significantly in 2023 and is expected to be a factor again in 2024. Median sale price is expected to increase 7% to 10% in 2024. In the Savannah MSA, the number of building permits issued in 2023 for single family homes was about 2,400 units, as compared to the five-year average of approximately 2,220 units. The average value of a permit issued decreased 7.3% to $257,500 in 2023. Residential construction is expected to moderately increase in 2024 as mortgage rates stabilize and borrowers adjust to the normalized cost of borrowed funds. The number of permits issued is expected to increase 5% in 2024. Numerous housing developments have been under construction or approved in the Savannah area throughout 2023. These include rezoning approval for a 350-unit development in Georgetown (250 single family lots, 100 townhomes), the opening of the Helmsman in downtown Savannah (five-story, 104-unit complex, accommodates 283 residents), the opening of Aventon Victory on Victory Drive (11-acres, 280-unit complex), and the opening of Populus Pooler located near the Hyundai Metaplant (30-acre, 316-unit complex). The three apartment complexes will begin leasing in 2024. In 2022, SCAD issued a $159 million bond to fund construction and renovation of two apartment complexes in Savannah–the Chatham apartments near Forsyth Park and the Indian Street Housing Development ("The River") on West River Street. While the Chatham apartments opened in 2022, the River, a 17 story complex that houses up to 804 students, is expected to open Fall 2024. The New Hampstead development in western Chatham County, mostly between Fort Argyle Road and Little Neck Road, has continued new residential development during 2023. Demand is expected to accelerate in 2024 as businesses increase hiring to meet the projected opening date of the Hyundai Metaplant in early 2025. Upon build-out, the 4,300 acre project will include parks, schools, and 9,500 residential units. Also in West Chatham, the Hopeton Landing development is planned for 1,000 residential units and 275,000 square feet of commercial and retail space. Known as Hopeton Landing South, the first approved phase will include 15 acres of senior housing and 45 acres of multi-family housing. To the south in Bryan County, at the new Exit 82 at Belfast Keller Road on Interstate 95, residential development is emerging on Raydient Properties' 3,800-acre development. The Heartwood development will have more than 10,000 homes upon completion. Roughly 100 homes have been finished or are currently under construction in the Lobolly division, which will have 300 homes upon completion. Tupelo–the next subdivision in development–has started site work for the first 120 homes. A 302-unit luxury apartment complex is also coming to the community and will begin leasing in Fall 2024. Commercial Vacancy rates in metro Savannah's office and commercial market decreased by nearly five percentage points to 4.3% at the end of 2023. The amount of vacant space declined to 165,000 square feet from 363,000 square feet of the nearly 4 million square feet of inventory in the Savannah MSA. Regionally, office market rental rates increased 12.5% to $25.16 per square foot while rental rates were $29.54 (+22%) per square foot in the downtown central business district. Rates increased 18.4% in the Southside office market to $24.14 per square foot. Rates are expected to increase more moderately in 2024 as the market completes its adjustment to the redevelopment of Johnson Square downtown office space to other uses. Office absorption continues to move southward in the vicinity of Forsythe Park and into the midtown area. Retail trade continues to develop and evolve in the region. Downtown, commercial operations along Broughton Street remain healthy with low vacancy rates along with some turnover indicative of innovative evolution in specialty retail and food service offerings. Further, commercial development activity continues to strengthen in the Starland District along Abercorn and Bull streets. At the eastern end of the riverfront district, the $600 million, 54-acre mixed-use Eastern Wharf project continues. Additional food service and personal service offerings are expected in 2024. The Mosaic Town Center, a 170-acre mixed-use development near I-16 and the Pooler Parkway, was acquired by Stoneweg US in October 2023. The center is currently home to Costco and Expercare and will soon host the Galen College of Nursing. Approval for educational use was obtained in September 2023, and the project is slated to be completed by December 2024. Further development of the center will be driven by population growth and infrastructure development in the immediate area and is expected to include investment occupied by national brand accommodations, retail, and other service providers.