Once the economic engine that drove much of metro Atlanta’s economy, the building of home subdivisions dried up completely in 2009. Subsequent years showed no signs of residential home construction activity, as bank foreclosed properties flooded a real estate market with far more seller than buyers.
Now, the building, and the jobs, seems to be returning.
A prime example is the recent story on the Covington News website reporting the approval of a new 211 home neighborhood in Newton County. The county was one of the worst hit during the recession. The property for the neighborhood was sold for $5.25 million in 2006. The new developer, Crown Communities, bought it from a bank recently. The advertised asking price was $795,000.
“We’re just excited about the economic development in that area and a lot of the job growth happening, and we are consistently getting inquiries about Newton County,” Phil Corley, Vice-President of Crown Communities, said. “So, I believe (the development) is really in the position to take advantage of the current economic growth there in the county for us.”
According to McGraw-Hill Construction, residential contracts for future construction are up 59% year to date for metro Atlanta.
Prices for homes have also stabilized in recent years and are now on the way back up.
As we documented last week, Atlanta is one of the top 5 markets for increasing home prices.
While nowhere near the industry it was from 2002-2007, residential housing seems to have found a footing and slowly but surely is building again.