Atlanta area among nation’s fastest growing new home construction markets

A recent National Association of Real Estate Agents report shows that the Atlanta-Sandy Springs-Alpharetta metro area is experiencing new home growth amid a nationwide housing shortage.

The region ranked fourth in the country for metropolitan areas with the most building permits for single-family homes in the past year.

Metro Atlanta real estate agent Allahva Panton has seen a surge in real estate sales in the Atlanta area, but not so much in Sandy Springs or Alpharetta.

“There have been a lot of new build sales, and, well, it’s obvious it’s a seller’s market, and there isn’t enough for everyone,” Panton said.

The NAR tracked the number of building permits issued by metropolitan areas from May 2020 to April for the report. 31,627 permits were issued in the Atlanta-Sandy Springs-Alpharetta area in the past 12 months. According to the NAR, about 680,000 fewer homes are available for sale across the country than the average number of active listings over the past five years.

The association said the shortage pushed national home prices in April to a record high of $ 342,000. The NAR warned that if home prices continued to rise at the same rate, many Americans could be excluded from the market.

The average price of homes in the Atlanta metro area in March was $ 396,500, up 15.9% from 2020, according to the Atlanta Realtors Association. However, the housing stock fell by 55.8% compared to March 2020.

Panton said that since resale inventory is low, now is the best time to invest in home construction. She also believes the number of permits may be higher than what the NAR reported.

“Most builders are waiting for counties to approve their permits and complaining about wait times. We are all waiting,” Panton said. “The waiting list for new construction is a mile long. It’s just a waiting game, but these permit numbers will remain stable as long as the market can handle it.”

The Houston-The Woodlands-Sugar Land metropolitan area in Texas recorded the highest number of single-family home building permits issued in the past year, followed by the Dallas-Fort Worth-Arlington area. The Phoenix-Mesa-Chandler, Arizona area was third.

About Martin Aaron

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