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May 21, 2026
Today: Richland County released April building permits, House passed landmark housing bill removing BTR forced-sale requirements, and mortgage rates recovered from 9-month highs as Iran peace talks advanced.
Mortgage rates fully reversed Tuesday's spike to 6.75% (9-month high) after news that U.S.-Iran peace talks are nearing a final draft. The average lender returned to Monday levels, still elevated but off the peak. Expect further rate improvement if the war formally ends, but MBA now forecasts a Fed rate hike in 2027, not cuts. Base-case projections place rates at 6.3% to 6.5% for the remainder of 2026, with one potential cut bringing them near 6.1%. Upside risk: 7% or higher if additional geopolitical shocks materialize. Mortgage News Daily, HousingWire
Nationally, active inventory climbed just 2.2% year over year (week ending May 16), down from nearly 10% gains earlier this year. Homes are spending only one additional day on market compared to last year. Median listing prices fell 2.3% year over year for the 18th consecutive week, but price reductions are also declining, signaling sellers are listing lower upfront rather than cutting later. This is good news for Richland County buyers. Target properties with realistic initial pricing. Realtor.com
Mortgage application volume dropped 2.3% last week as purchase borrowers pulled back across conventional and government loan types. ARM share hit 9.6% of total applications, the highest since October 2025, as borrowers sought rates 80 basis points below the 30-year fixed. If you have clients waiting on the sidelines, introduce ARM products now while the spread remains wide. RISMedia
Lenders are rolling out creative affordability products. Bayview Asset Management launched a land lease program (Fannie Mae-eligible first mortgage on the house, with Estately buying the land on a 50-year lease at 5%), cutting monthly payments by roughly $300 in high-cost areas. ARM buydowns are also seeing an uptick. Watch for these products to arrive in the Columbia market if rates stay elevated through summer. HousingWire
Action: Brief buyers on ARM options and new land lease products. For sellers, emphasize pricing at market from day one rather than testing high and reducing later.
Scion Group and Ares Management closed the largest student housing portfolio deal of 2026: $910 million for 12 properties totaling 7,578 beds across 10 states and 12 universities, including Auburn, University of Florida, Ohio State, and Arizona State. Harrison Street Asset Management sold the portfolio as part of its strategy to exit diversified assets for institutional buyers. Walker & Dunlop arranged financing led by BMO. Commercial Observer
While USC is not directly named in this deal, the transaction underscores institutional appetite for off-campus student housing near flagship universities. With enrollment trends strong and new supply constrained, Columbia's Five Points and Vista districts remain attractive for investors targeting USC students. If you represent student housing properties, highlight durable demand and limited competition.
Fort Jackson PCS cycles continue to drive military housing demand in the northeast Columbia suburbs. No new inventory data this week, but the broader trend of low construction and high occupancy remains intact.
Action: For investors, USC off-campus and Fort Jackson-area properties are defensible assets in this institutional environment. Reach out to clients with student housing or military-adjacent holdings.
Richland County released its April building permits listing. No specifics in the article, but this is your monthly pipeline view. Pull the full report from Richland County's site to identify new residential and mixed-use projects coming online. Cross-reference permit addresses with tax sale calendars and expired listings to spot flip opportunities. Richland Source
Nationally, spring 2026 has seen new listings and contract signings reach their highest levels since 2022, with both metrics up year over year in most of the top 50 metros. Pricing realism is the key differentiator: buyers are showing up where sellers price correctly from the start. For Richland County, this means FSBO and expired listings that over-priced initially are now more likely to convert if re-listed at realistic comps. Realtor.com
HUD released a deregulation roadmap for state and local governments, recommending permitting fee caps, eliminating impact fees, curtailing offsite infrastructure mandates, and stopping retroactive code changes. If South Carolina or Richland County adopts any of these measures, expect faster timelines and lower costs for new construction and renovation projects. Track SCREC and local planning commission agendas for updates. HousingWire
Action: Pull Richland County's April permit list today. Flag addresses near your active listings or investment clients. For expired listings, re-engage sellers with updated pricing analysis emphasizing the spring uptick in contract signings.
House passed the revised 21st Century ROAD to Housing Act (396-13 vote) with a critical change: the seven-year forced-sale provision for build-to-rent (BTR) communities is removed. The bill still bans institutional investors owning 350+ single-family homes from buying more traditional SFRs, but carves out BTR, renovate-to-rent, and 55+ communities. The Senate must now reconcile and pass before reaching President Trump's desk. Commercial Observer, HousingWire
For Columbia investors, this means BTR projects can move forward without the existential threat of mandatory divestment after seven years. If you have clients considering BTR developments in Lexington County suburbs (Chapin, Irmo, Blythewood) or near Fort Jackson, the path is clearer now. Financing and long-term hold strategies are viable again.
The bill also raises and indexes FHA multifamily loan limits (unchanged for 12 years), strengthens community banks (critical for residential construction financing in the Midlands), and expands HOME program flexibility. NAHB led the push to remove the BTR provision, arguing it would have cut rental housing supply by 40,000 to 72,000 units annually. NAHB, NAHB
Retail real estate remains tight. CBRE reports U.S. retail availability at 4.9% in Q1 after three straight quarters of positive absorption. Phoenix, Texas, and Florida are seeing ground-up power center construction due to population growth and new suburbs. Southern California retail availability is 6.2% in LA County, 3.9% in Orange County. Landlords hold pricing power, though rent growth has flattened to 3% from 4%. Grocery-anchored centers remain the gold standard. Commercial Observer, Commercial Observer
For Columbia, this means retail vacancies in Harbison, Sandhill, and Vista districts should command strong lease rates. If you represent retail landlords, avoid excessive tenant improvement concessions unless the tenant is investment-grade credit. QSR demand has softened due to inflation and minimum wage pressure.
Action: BTR investors should re-engage projects put on hold since March. Retail brokers should tighten lease terms and hold firm on TI concessions. Multifamily developers can now count on higher FHA loan limits, so revisit pro formas for projects previously marginal.
Multigenerational living is gaining traction as a rental strategy. Properties with ADUs, separate entrances, or flexible floor plans can command premium rents while offering affordability to tenants splitting costs across generations. For Columbia landlords with larger single-family homes in Irmo, Chapin, or Forest Acres, consider marketing these as multigenerational rentals. BiggerPockets
No new vacancy or rent trend data for Richland County this week. Continue monitoring Section 8 voucher updates and SCREC landlord-tenant rule changes.
Action: Audit your rental portfolio for multigenerational appeal. Properties with 3+ bedrooms, multiple bathrooms, and flexible living spaces are candidates for premium positioning.
HUD released its "State and Local Best Practices for Home Construction" report, implementing President Trump's March executive order to reduce barriers to housing construction. Recommendations include capping permitting fees, eliminating unrelated offsite requirements, stopping retroactive code changes, and limiting local code add-ons beyond ICC and federal standards. HUD claims regulatory costs add $100,000+ to new single-family homes, and green energy mandates can add $30,000. HousingWire, NAHB
South Carolina and Richland County do not yet have adoption timelines, but watch SCREC communications and local planning commission meetings for signal that these federal recommendations are gaining traction. If adopted, expect faster permit approvals and lower development costs.
PMI (Private Mortgage Insurance) remains required for conventional loans with less than 20% down. PMI costs 0.3% to 1.5% of the original loan amount annually (e.g., $75 to $375/month on a $300,000 loan). Borrowers can request cancellation at 20% equity or automatic removal at 22% equity. Educate first-time homebuyers on PMI removal strategies, including refinancing if home values have increased significantly. Redfin
As-is listings are appearing more frequently in distressed or estate sale scenarios. Buyers of as-is properties should still conduct inspections for informational purposes and ensure repair costs align with purchase price. For investors, as-is properties can offer discounts if renovation scope is accurately estimated. Redfin
NAHB's Housing Market Index (HMI) rose 3 points to 37 this week, but rates continue to climb, suggesting HMI will remain in the 30s. NAHB Chief Economist Rob Dietz forecasts a softer 2026 than initially expected. Lumber and building material prices continue to rise. NAHB
Action: Monitor SCREC and Richland County planning commission agendas for HUD deregulation adoption signals. For buyer agents, prepare PMI education materials and as-is purchase checklists. Builder clients should track HUD's fee cap and code limit recommendations for future cost savings.
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