The tiny house movement is a trend taking the real estate market by storm! Tiny homes are beginning to fill-in the gap between the lack of supply and demand. John Hunt, President of MarketNsight and ViaSearch, joins Atlanta Real Estate Forum Radio to discuss the “new normal” and explain how and why the market has reset in terms of both demographics and psychographics.
On today’s show, Hunt gives insight on ViaSearch and how the massive demographic change has impacted the number of homes that builders sell. Due to the downturn, job insecurity, student debt and more, the age for a first-time homebuyer has jumped up to 33-years-old – this is the reality of the new normal!
Millennials are builder’s biggest consumers and what millenials want is to be back in the city. As a builder or developer, how can you get more home sales without losing money? Hunt explains his theories and also points out the hot spots in town, as well as the growing areas that are scattered outside of Atlanta.
Have you noticed that your year starts strong but then continues to drop or become stagnant? Hunt explains the trends in permits and why businesses continue to see this rise and fall. He stresses that there is not a lack of demand, just a lack of supply at the price points where buyers want to buy. Plus, he explains that Atlanta builders are not the only ones seeing a low amount of distressed lots.
Creative projects that Hunt is currently seeing in the early stages are more townhomes, stack-flats and compact condominiums, an all-around tiny housing movement. Builders are beginning to think outside the box and signs are showing that this is extremely successful. Hunt states that the tiny house movement may even bring back the 60 percent of the people that were buying homes at early stages in their lives.
A tiny home can be classified in several ways. Currently, in the city of East Point, there is a tiny home of 500 square feet with detached product and a communal garden coming soon. Both generations, empty nesters and Millennials, are flocking to these homes because they are affordable and offer a place in the city.
What are Hunt’s predictions for 2019? In today’s show, he gives the audience a sneak peak of his thoughts and explains that if builders want to see that 30 percent growth rate, then they need to change what they are doing. His main piece of advice to builders for 2019 is even though tiny homes are making a big impact on the economy, never stop building traditional homes. It’s important to think outside of the box, but the traditional side of the equation still needs constant fueling.
MarketNSight is focused on helping home builders 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 across every new home market in the nation.
A special thank you to Jackson EMC for sponsoring Atlanta Real Estate Forum Radio. Jackson EMC offers homebuyers peace of mind and lower bills with its certified Right Choice™ new home program. These homes are built to be energy efficient and sustainable with improved indoor air quality, convenience and comfort.
The Atlanta Real Estate Forum Radio “All About Real Estate” segment, presented by Denim Marketing, airs on Fridays and highlights the movers and shakers in the Atlanta real estate industry – the home builders, developers, Realtors and suppliers working to provide the American dream for Atlantans. For more information on how you can be featured as a guest, contact Denim Marketing at 770-383-3360 or fill out the Atlanta Real Estate Forum contact form. Subscribe to the Atlanta Real Estate Forum Radio podcast on iTunes, and if you like this week’s show, be sure to rate it.