The Market is Maturing
- Big homes in prime neighborhoods average 1-2 million.
- 300K starter homes in hot neighborhoods forced first time buyers to look farther out. Most young buyers don’t want fixer-uppers. The result: high renovation costs and long wait times
New Construction Rebounds
- New construction, fully recovered from the 2009 recession, includes small-lot starter and retirement homes, spec and custom homes, large subdivisions, townhomes, mid-rise apartments and high-rise condominiums
- Renovated homes focus on space design: flow, finish and fixtures. Renovations sometimes skimp on energy efficiency, moisture management and ventilation, electric and plumbing upgrades.
Inspections and Code
- Building codes require stronger portal openings and decks, better moisture control, ventilation and energy efficiency.
- Energy efficient products like radiant barrier roof decking, variable speed heating and cooling, zoned duct systems and on-demand water heaters improve performance and comfort
- The budget for Georgia’s Department of Community Affairs (DCA), the agency tasked with disseminating and administering codes, was slashed.
- There are no specific requirements that renovations comply with new code
Forecast for 2018
- Metro Atlanta’s growing housing market is positioned to carry 2017 gains into 2018
- Prices have flattened due to adequate supply and buyers willing to look beyond popular neighborhoods
- Lengthy commutes and school quality are limiting factors
- Private inspectors fill quality control gaps created by less government oversight, rapidly evolving industry and a strong market.