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Interest in New Homes Rises as Atlanta Market Recovers

A comparison between new home shoppers in 2012 and 2013 and the opportunity in earning created in the industry.

How has the Atlanta home shopper changed? Job growth and a recovering housing market have sparked an interest in newly built homes in the Atlanta area. Infographic courtesy of Builders Digital Experience.

When it comes to buying homes, Atlantans want newly built home more than ever.

A recent report from Builders’ Digital Experience, a digital marketing firm for homebuilders that produces New Home Source, found that the number of shoppers in the Atlanta area who are considering buying a new home increased 21 percent from 2012 to 2013.

The report, called the “2013 National Market Intelligence Packet,” also says this 21 percent increase in the purchase of new homes equates to 18,000 new homes. The potential revenue that comes from building these homes is more than $4 billion.

The report is based on studies of the Atlanta market area, including the city of Atlanta and the suburbs of Sandy Springs and Marietta. New Home Source shows a total of 79 new home communities amongst these three cities and more than 400 new home communities in the Greater Atlanta area.

The uptick in new home interest coincides with a recovery of Atlanta’s homebuilding industry. According to the Georgia 2014 Economic Outlook report from Wells Fargo Securities, LLC, single-family build permits issued increased by 40 percent in 2013. In that same year, multi-family homes permits increased by 65 percent.

“Even with the increase, single-family construction remains well below the pace averaged during the years prior to the housing boom,” the Wells Fargo report found. “Multifamily construction is doing considerably better, however, reflecting strong demand for apartments.”

The Wells Fargo report also says that as homebuilding picks up, sales of existing homes in 2013 decreased 3 percent from the prior year.

“The slowdown likely reflects less investor activity, as most of the bargain-priced homes left over from the housing bust have already been sold,” the Wells Fargo report said.

Plenty of signs point to positive job growth in the Atlanta area, a strong indicator of real estate investment. The Wells Fargo report says non-farm employment increased 3.3 percent and unemployment dropped to 7.7 percent. Another report, “2013 Workforce Trends Report,” from the Metro Atlanta Chamber says advertisements for jobs increased 60 percent from 2012 to 2013.

Rajeev Dhawan, an analyst at the Economic Forecasting Center at Georgia State University’s J. Mack Robinson College of Business, says the construction industry will recover thanks to new construction projects. Both the Atlanta Braves baseball team and the Atlanta Falcons football team will construct new stadiums in the next few years. These stadiums, combined with an increase in apartment construction, will add new jobs to the construction sector.

Other industries driving job growth in the Atlanta area include digital media, IT and supply chain services. According to the Metro Atlanta Chambers report, Atlanta’s job postings for digital media positions double the national average.

Image 1: Atlanta Housing Market
Image 1 Description: How has the Atlanta home shopper changed? Job growth and a recovering housing market have sparked an interest in newly built homes in the Atlanta area. Infographic courtesy of Builders Digital Experience.

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