Myrtle Beach/Surfside Beach/North Myrtle
Hello all,
I am currently just doing research into STR for the Myrtle Beach and surrouding areas. I don't currently own any properties, but I am looking to start by next year. I am located in New York, but have family in Surfside Beach one of which is a real estate agent.
We have been talking about the market there and I am curious to talk to anyone who has more experience in the area. She is stating that the market is a bit saturated with some really good deals, with properties that have been sitting on the market for some time (30,40,60 days +).
My questions are as follows:
1. Why is the market such a buyers market atm there? Is the area showing signs of decline?
2. What are the insurance rates like? Condo specifically, but the general area as well.
3. I looked at one studio condo and the HOA covers primary insurance, but what other insurance would I need?
My plan is to build a porfolio over the next 10 years, so looking to start out at lower budget then work my way up to a bigger/better beachfront condo in the future. I am looking to invest in multiple states, but Myrtle Beach area is just of a personal interest to start. Also helps having family in the area to guide us.
Thanks,
Brandon
Most Popular Reply
@Brandon M. welcome in, and smart to start with research instead of jumping at the first "good deal." John and Mike already covered the condo vs house point, so I won't repeat it. Let me add some specifics on your actual questions.
On your first question, whether the area is declining: I don't read it that way. Tourism and STR demand are still active there. What's actually happening is a condo supply glut. Condo inventory is sitting around 8 months of supply (anything over about 6 is a buyer's market), average days on market for condos that sell is up near 120, and only about half of listings actually close. That's the "buyer's market" your agent is seeing. It's a supply-and-cost problem, not a demand collapse. The deals are sitting mostly because sellers haven't repriced for today's higher carrying costs and a pickier buyer pool, not because nobody wants to vacation there.
That carrying cost piece is what I'd really dig into, and it ties straight to your insurance questions. Coastal SC insurance premiums are up roughly 20 to 35 percent since 2023, and that flows into condos two ways: higher HOA dues (oceanfront condo HOAs commonly run $350 to $900 a month) and special assessments when a building's reserves or master policy fall short. Those assessments can run anywhere from a few hundred to tens of thousands per unit. That's the part that quietly wrecks a "cheap" condo deal.
For the insurance itself, a condo's HOA master policy covers the building and common areas (the "primary" your studio mentioned). What you still need on top:
Loss assessment coverage. This is the big one for condos. If a storm causes more damage than the master policy covers, the HOA can assess each owner, and your share will be covered. The catch is that the default limit is often only $1,000, so bump it to $5,000 or $10,000+, especially in a building with a high master deductible.
HO-6 (walls-in) for your unit interior, fixtures, and your furnishings.
STR coverage. You have to disclose short-term rental use to the insurer, and a standard HO-6 policy often requires an endorsement or a separate commercial policy to cover it.
Loss of rental income.
Wind and named storm. On the coast, this is usually a separate hurricane deductible that's a percentage of insured value (commonly 2 to 5 percent), not a flat dollar amount, so it can be a big out-of-pocket hit after a storm.
Flood. Separate from all of it, through NFIP or a private carrier. Check the flood zone before you fall for a unit.
Get real quotes on a specific unit before you're emotionally invested. Between premiums, the percentage hurricane deductible, and special assessment risk, the insurance reality is what makes or breaks coastal condo deals.
One thought on your 10-year plan. Starting cheap with a studio condo feels like the safe first step, but in this market, it's often the hardest place to make money. You're competing on price with the most units, and you're the most exposed to HOA hikes and assessments. John's "buy a house close to the beach" take is the same conclusion I'd land on from the numbers side. A differentiated property where you control the amenities (pool, golf cart, pet-friendly) has pricing power. A commodity condo just races to the bottom on the nightly rate.
Net, your instinct to research first is the right one. I'd underwrite any specific Myrtle listing on conservative comps and the real coastal carrying costs, not the seller's history. That's basically why I built the tool I use (NOI Signal), to score a deal on cash flow and returns before the story. If you land on a specific condo or house, happy to help pull comps and run it so you can see what it really does once the full carry is in. Good luck!