Spartanburg Housing Push Targets ‘Missing Middle’ as BMW, Milliken Growth Strains Supply

SPARTANBURG, S.C. — Spartanburg County planners and developers are racing to fill a widening gap in “missing middle” housing — duplexes, townhomes and workforce apartments — as job growth tied to BMW Manufacturing and Milliken & Company continues to outpace the supply of moderately priced homes across the Upstate.

The median home price in Spartanburg has climbed to roughly $266,500, up 6.6% from a year ago, while homes are taking an average of 82 days to sell, up nearly 8% year-over-year, according to market data compiled by Houzeo and Redfin. Inventory remains tight at just over a month’s supply, though forecasters expect price appreciation to moderate to 2% to 4% for the remainder of 2026 as more units reach the market.

Several projects now underway are aimed squarely at that middle tier of the market. A $70 million redevelopment of the former Beaumont Mill site near Spartanburg Regional Healthcare System will add 247 market-rate apartments alongside 28 workforce units reserved for renters earning around 80% of the area median income, with construction slated to begin this month. Spartanburg Housing, the local public housing authority, is separately building 24 duplex units — a mix of one- and two-bedroom homes — on the city’s south side, expected to wrap up by May, and 24 one-bedroom apartments near the Arkwright community slated for completion in August.

The 80-unit Victoria Gardens apartment complex on Spartanburg’s north side, also developed by Spartanburg Housing, is on track for completion around the same time, adding further workforce-accessible units to a submarket where entry-level inventory has lagged the region’s population growth.

County planners point to BMW’s continued Upstate expansion and Milliken’s manufacturing footprint as the primary drivers of housing demand, with both employers pulling workers into the region faster than starter homes and moderately priced rentals can be built. That dynamic has pushed the Spartanburg County Planning Commission to prioritize zoning and permitting for duplexes, townhomes and small-lot single-family homes as part of its 2026 growth planning, according to county officials.

For homebuyers, the tighter starter-home segment means continued competition despite the broader market’s shift toward more balanced conditions. Sellers of homes in good condition and reasonable price points are still fetching close to full asking price — properties are selling for nearly 99% of list price on average — even as overall days-on-market lengthen. For developers and investors, the workforce and missing-middle segment represents one of the clearer growth opportunities in the Upstate, with local governments increasingly willing to fast-track projects that add units at price points below the region’s new-construction median.

If the current pipeline delivers on schedule, several hundred new middle-income units could come online in Spartanburg County by the end of 2026 — a meaningful addition, though likely still short of fully closing the gap between local wages and home prices in a county adding jobs faster than it is adding rooftops.