The 2026 Reality Check

If you thought the cost gap between buying and building was closing — think again. South Carolina’s housing market keeps shifting like beach sand at high tide. In late 2025, Redfin data showed median home prices in the state climbed to $382,200, up 2.5% year-over-year, while supply jumped 12.7%. That’s good news for buyers in theory — more options — but higher land and labor costs have made the “build vs. buy” decision in 2026 trickier than ever. Especially along the coast, where Myrtle Beach and the Grand Strand remain magnets for out-of-state movers.

1. South Carolina’s 2026 Market Snapshot

According to Redfin’s September 2025 data, South Carolina’s housing market is heating moderately — not boiling like the 2021–2022 frenzy, but simmering with steady demand.

• Median Sale Price: $382,200 (+2.5% YoY)

• Homes for Sale: 37,995 (+12.7% YoY)

• Homes Sold Above List: 11.7% (down 1.4 pts YoY)

In Myrtle Beach, price gains have stabilized after two explosive years, but inventory remains tight for new homes in popular neighborhoods like Market Common, Carolina Forest, and Murrells Inlet. The shift isn’t just local: Myrtle Beach ranked #4 nationally for inbound migration between August and October 2025. Retirees, remote professionals, and investors continue flooding the coastal corridor, propping up prices even as national affordability declines.

2. Buying a Home in 2026: The Pros, Cons & Costs

For many buyers, purchasing an existing home feels like the safer route in 2026 — predictable, faster, and potentially cheaper upfront. But the details matter.

Average Home Purchase Costs in 2026 (South Carolina):

Cost Component	2026 Estimate	Notes
Median Home Price	$382,200	+2.5% YoY (Redfin)
Closing Costs	3–5% ($11,000–$19,000)	Typical for SC transactions
Average Mortgage Rate	~6.5%	Stable but still elevated
Insurance (incl. flood/coastal)	$2,000–$5,000/year	Coastal homes can exceed $7k
Renovation/Repairs (avg)	$15,000–$30,000	Especially for homes built pre-2010

Upside:

• Move-in ready in 30–60 days.

• Lower risk of construction delays.

• Established neighborhoods (utilities, schools, mature landscaping).

Downside:

• Older homes need upgrades (HVAC, roofing, flooring).

• Limited customization.

• Flood and insurance costs rising along the coast.

In Grand Strand communities, buyers often pay a “location premium” — existing homes within a mile of the beach still fetch 10–15% above inland properties. That gap hasn’t budged since 2024.

3. Building a Home in 2026: What’s Changed Since 2024

Construction costs in South Carolina climbed roughly 6–8% from 2024 to 2025, mostly due to labor shortages, higher land valuations, and updated building codes in coastal counties.

Average New Construction Costs (2026):

Type	Cost per Sq. Ft.	Total (2,200 sq. ft. home)
Entry-Level Custom	$165–$185	$363,000–$407,000
Mid-Range Custom	$200–$250	$440,000–$550,000
Luxury Coastal	$275–$350+	$605,000–$770,000+

Biggest Cost Shifts Since 2024:

• Land acquisition: +10–15% around Myrtle Beach and Carolina Forest.

• Lumber and framing: +7% YoY after a brief post-2023 dip.

• Labor costs: Up 5–8% due to regional builder shortages.

• Insurance and code compliance: +12% for coastal flood-rated zones.

While building still carries a higher upfront cost, 2026 buyers gain energy efficiency, smart-home tech, and warranties that offset future repair expenses.

4. The Location Premium: Myrtle Beach & The Grand Strand

In 2026, Myrtle Beach continues to outperform much of the state. Homes in Market Common and Carolina Forest often command $200–$230 per square foot, while inland Horry County lots stay closer to $150–$180.

For those building, land availability is tightening east of Highway 31. Lots within city limits can range from $120,000–$200,000, while just 15–20 minutes inland near Conway or Aynor, prices drop below $80,000.

Hot tip: Buyers willing to move 10–15 miles inland can shave 15–25% off total build costs while staying within an easy drive to the coast.

5. Cost Efficiency: Build vs Buy Comparison (2026)

Category	Build (Custom 2,200 sq. ft.)	Buy (Existing 2,200 sq. ft.)
Base Cost	$440,000	$382,000
Land (avg.)	$100,000	Included
Insurance (annual)	$2,500	$3,500
Maintenance (10-yr)	$15,000	$40,000
Customization	Full	Limited
Energy Efficiency	High	Moderate
Resale Appeal (2030+)	Strong	Moderate

Verdict: Building is 15–20% more expensive upfront but offers better long-term ROI for those staying at least 7–10 years. Buying remains the faster, more flexible path for seasonal residents or short-term investors.

6. The 2026 Forecast: What to Expect

South Carolina’s housing market is expected to stay stable through 2026. Mortgage rates are flattening, and supply is finally catching up — a sign that price growth will slow to 2–3% annually statewide. Myrtle Beach, however, remains an outlier thanks to constant inbound migration.

Key Predictions:

• Inventory continues to rise modestly through mid-2026.

• Build costs may ease slightly if material inflation stabilizes.

• Buyer leverage improves as competition for existing homes cools.

For South Carolina residents who can secure land now, 2026–2027 may be the sweet spot for building before the next coastal demand surge.

Build Smart, Build Local

Whether you’re debating blueprints or open houses, Carolina Crafted Homes can help you compare costs and timelines based on your Myrtle Beach goals.
Explore your options, review available lots, and get a clear cost estimate before committing to either path.
Schedule your free build vs. buy consultation today.

FAQs

1. Is it cheaper to build or buy a home in South Carolina in 2026?
Buying remains cheaper upfront — around 15–20% less — but building offers stronger long-term value and lower maintenance over 10 years.

2. What’s the average cost per square foot to build in Myrtle Beach in 2026?
Expect $200–$250 per sq. ft. for a mid-range custom home, depending on finishes and lot location.

3. Have South Carolina home prices gone up since 2024?
Yes. Median prices rose 2.5% year-over-year as of September 2025, with Myrtle Beach outperforming most inland markets.

4. How much have construction costs increased since 2024?
Roughly 6–8% overall, driven by land, labor, and insurance hikes, especially in coastal flood zones.

5. What are the best areas to build near Myrtle Beach?
Look inland toward Conway, Socastee, and Longs for affordable land and new infrastructure growth.