Mark your calendars for June 13, 2019, for MarketNsight’s next MarketWatch Atlanta event!
Over the last several years, MarketNsight has predicted housing starts both regionally and nationally within 1% of the actual.
Dr. Rajeev Dhawan from Georgia State University’s Economic Forecasting Center will be joining us again. At our December 2018 MarketWatch Atlanta, Dr. Dhawan predicted the Fed would hike rates in December, pause until June 2019 and then cut in 2020. With this prediction looking more and more likely, we look forward to what he has to say in June.
John Hunt discussed the “missing middle” at the last MarketWatch event. If you missed it, you might want to brush up on this housing term that many developers nationwide are starting to use. The term refers to the need for more diverse housing choices at affordable prices. This growing movement is geared toward rezoning areas into higher density and building more housing for middle-income home buyers at smaller sizes — duplexes, triplexes, bungalows, multiplexes, courtyard apartments, etc. Building missing middle product was thwarted by zonings in the past, but is being revisited by cities, counties and municipalities nationwide as it gleans a number of positive benefits such as walkability and a greater sense of community.
According to recent statistic from the National Association of Home Builders (NAHB) the average size of new homes fell for the third straight year in 2018. Median square footage of homes peaked at 2,500 square feet in 2015 and shrank to 2,320 in 2018.
To recap our Round Up of the December 2018 MarketWatch Atlanta:
“High demand for walkability and the need for more affordable options are leading many cities and developers to think outside our current housing box,” John Hunt, principal with MarketNsignt said.
According to Hunt, slowed home sales are not simply because of lack of demand – demand is there – just a lack of supply at the price points homebuyers can afford. Most Millennials seeking to buy in core counties cannot afford even the “entry-level” price point, and because of this, many Millennials opt to rent instead to live within desirable intown locales.
“The apartment industry has shown that today’s housing consumers are willing to pay high prices for very little square footage to stay where they want to be,” Hunt said. “The entire neighborhood around them serves as their amenity.”
Hunt explains that in order to build a product at the right price point in a desirable location, “We have to rethink our 40-year-old ideas about new construction.” It is time to innovate – smaller for sale product at a higher price per square foot could solve some of the need.
For more news and information on MarketNsight, visit them on the web or read more of their articles here on Atlanta Real Estate Forum.