Does more people mean a better economy for Charleston, SC? – Commentary

By Mark A. Leon

If you never took an economics course in college, you may think the surge in population in the Lowcountry translates to a booming economy, but the recent rash of restaurant closings and staggering growth for other businesses paint a very different picture.

In fact, we may be struggling worse than it appears.  From restaurants to retail to galleries, the financial health of our local businesses may be getting hurt by the growth in the Lowcountry

Here are a few reasons we feel things could get worse before getting better.

1. Many of the larger, more pronounced brands in Charleston are managed by outside public relations firms who manage press releases, social media and event planning.  For small business owners who cannot afford this outside resource, they are already two steps behind.
2. Success of small business is so connected to a digital brand presence.  In this day and age, not having a daily reel on Instagram and TikTok could mean the difference between thriving and closing.
3. Larger hospitality groups are bringing in outside money and clustering restaurants and businesses.  These larger hospitality companies are squeezing market share from their smaller local competitors.
4. Higher cost of goods and resources along with our taxation that is above national levels (9.5% retail, 10.5% food and 16% alcohol) are forcing local residents to reduce their amount of time out and putting more pressure on tourism to fill the gap.
5. Charleston has traditionally been a festival heavy culture and has thrilled for so many years with a smaller population.  Now with the surge of people and growth of small artisan businesses, food trucks and artists, there is an over saturation of the market making it harder to gain market share.
6. Surging rent and housing costs limit discretionary spending.  New residents that pay half a million for a new home or $3000-$4000 a month for rent have to limit their recreational spend.
7. Our roadway infrastructure coupled with the highest volume of vehicles on the roadways (drivers, contractors, delivery, UBER, Lyft) are curtaining people’s desire to leave their local area to explore new places.

When you take a step back and look at these seven factors along with other underlying issues, we believe more people does not mean a healthier economy.  As you think about Tuesday’s election and beyond, put thought into what you want you home to be and begin to have the right conversations.