Canadian native Rob Preiditsch enjoyed an unexpected wave of good fortune. Born and raised in Kitchener, Ontario, he found himself on a cross-country and track scholarship at Georgia State University in Atlanta just as the city prepared to host the 1996 Summer Olympics. This launched a lifelong love affair with the American Southeast. Glistening opportunities in the early parts of his career allowed him the privilege of serving with the Canadian Olympic Association and then a new NHL team, the Atlanta Thrashers. Over time, he crossed paths with a Georgian woman, whom he eventually married, and thus started delving into Southern traditions such as hosting pig roasts and preparing boiled peanuts.
After starting their family, Rob and his wife yearned for a change of pace from the relentless energy of Atlanta, deciding to relocate to the South Carolina city of Charleston. This move coincided with a dramatic upturn in Charleston’s economic condition. Long known for its deep historical roots and gorgeous architecture, Charleston was not typically associated with economic dynamism. But over the past decade, a vibrant manufacturing industry evolved here, rivaling that of Southern Ontario.
Rob Preiditsch, now selling real estate on Daniel Island in Charleston, has enjoyed witnessing the region’s financial rise. The city and its surroundings have become a popular destination for those seeking a second home. South Carolina’s economy registered a significant jump of 4.2% in growth last year, tripling Ontario’s progress, reflecting one of the swiftest growth rates in the United States. A considerable chunk of this growth can be attributed to the booming Charleston metropolitan area, which has drawn heavy investment from numerous industrial giants.
Charleston has amassed a growing following among the community of remote workers, leading to a surge in its population nearing the one million mark. This has triggered an upward spiral in housing prices as the demand has soared. Similar to Charleston, other cities in the Southeast have also experienced robust growth. Charlotte, North Carolina, for example, has grown into a key hub for financial services, with its population nearing three million.
Last year, North Carolina’s economy grew by 3.7%, largely driven by Charlotte’s growth. Savannah, Georgia, is home to the third-largest port in the United States, trailing only Los Angeles and New York. It has transformed into a significant locus of manufacturing, recently receiving an investment of US$7.6 billion from Hyundai Motor Co.
These positive developments shed fresh light on the ongoing trade war initiated by U.S. President Donald Trump. At a distance, the nation seems to be grappling with political turmoil. However, despite softer growth this year, indicators like consumer health remain robust and inflation remains under control. States close to the Canadian border, such as Michigan, might suffer due to the trade conflict, but the booming economies in the Southeast, along with Texas, could potentially offset the impact.
Charlotte is an exemplar of the region’s growth. The city, home to major financial institutions such as Bank of America, Wells Fargo, and Truist Financial Corp., has grown remarkably. Despite being less prominent compared to financial hubs like New York or Chicago, Charlotte’s size has more than doubled in recent years.
The impact of the Covid-19 pandemic was less damaging than one might expect. Charlotte has emerged as an attractive destination for young professionals, with many careers transitioning to remote work. For instance, Ted Jarmuz and his wife, originally from Buffalo, found the city to be the perfect combination of cultural familiarity, moderate winters, and affordable housing.
Job growth in Charlotte may seem minimal at first glance, but the cumulative effect is substantial. Over the past year, Charlotte has outpaced Atlanta in job creation, despite having less than half of Atlanta’s population. Aside from its booming economy, Charleston is also celebrated for its stunning historical architecture and the surrounding Lowcountry landscapes. The local wedding industry thrives amid such idyllic settings.
Suburban development is also booming, with new suburbs like Point Hope appearing on the map. These new homes often ardently reflect Southern charm, featuring details such as second floor balconies with white railings and spacious porches. Savannah, as well, appears to be thriving. Marty Newsome reiterates this sentiment perfectly: ‘Savannah is killing it right now.’ Born into a shrimp boat-owning family, Mr. Newsome attests to the city’s growth over the past 15 years.
Unlike other booming cities, Savannah boasts a flourishing creative class, largely attributed to SCAD – the Savannah College of Art and Design. While the economic boom has required adjustments like accommodation to the rising tax base, residents like Mr. Newsome would prefer growth over stagnation, even as they navigate the associated challenges.
One wonders about the sustainability of this growth given the global economic uncertainty, further intensified by President Trump’s re-election and Treasury Secretary Scott Bessent’s hints of delayed trade deals. Warning signs are appearing, suggesting that the Southeast might be cooling off. There are real concerns about the impact of trade war, particularly for vehicle manufacturers, if demand for electric vehicles in North America fails to live up to expectations.
South Carolina could potentially bear the brunt of the trade war as it has the highest trade exposure on the east coast. Despite this concern, economic forecasts project that the state will still experience a 2.1% growth this year. In comparison, the forecast for Ontario, another hub for auto manufacturing, sits at a modest 0.6%. Navigating the trade war will require careful planning and shrewd execution, with the ultimate victory potentially hinging on the endurance of these economic powerhouses.
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