MarketNsight recently hosted its semiannual MarketWatch Atlanta event releasing data on the state of the Atlanta new home industry to a crowd of more than 400 home builders, developers, bankers, Realtors and others in the industry. MarketNsight and ViaSearch President John Hunt explained the state of the housing market in Atlanta and shared predictions for the upcoming New Year.
New home growth has moderated in Atlanta from 15 percent in 2016, to 8 percent in 2017 to 5 percent in 2018, and MarketNsight is beginning to see innovation centered on older concepts, long forgotten zonings and retro product design.
“High demand for walkability and the need for more affordable options are leading many cities and developers to think outside our current housing box,” Hunt 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.
Suburban new home sales remain steady, especially in certain popular high school districts. West Forsyth, North Forsyth, North Paulding, East Coweta, Creekside, Cherokee, Dacula, Archer, Westlake and Apalachee high schools claim the top 10 spots.
MarketNSight is focused on helping homebuilders and developers make smart decisions related to purchasing land and pricing product. Its groundbreaking Feasibility Matrix® systemizes the decision-making process and creates a one-stop-shop for gauging new home community feasibility including ranking by builder and subdivision and developed lot and raw land sales. To learn more or to schedule a demonstration, visit www.MarketNsight.com.