Atlanta Residential Construction Holds Steady through Q3-2018

HBW Quarterly Report – Building Activity Trend Report for New Residential Construction in Atlanta through Q3-2018

New residential construction through the third quarter of this year in the Metro Atlanta area is almost mirroring last year’s pattern.  From January through September of 2018, there have been approximately 18,550 housing starts, with the second quarter of the year holding the greatest amount of new construction activity (Q2 – 6,794 permits).  While the total number of starts is nearly on course with last year’s totals, certain counties are showing significant changes in construction patterns.  For example, Cobb County appears to be continuing its two-year growth pattern; in 2016, housing starts were up by 64%, and in 2017, the area had a 21% year-over-year boost in new home construction.  So far this year (through Q3), Cobb County is already exhibiting a 20% year-over-year increase in residential construction permits resulting in nearly 1,700 housing starts for the 9-month period.

Another county that has noteworthy activity in the residential market is Henry.  Located just about 28 miles South of the City of Atlanta, Henry County is the 8th most populated county in Georgia (source: Census.gov).  Over the last five years, annual increases in new residential construction have ranged from 17% to 50%.  So far this year, the area has experienced a 9% year-over-year increase in housing starts resulting in approximately 1,220 new residential construction permits added to the HBW database.

As far as higher concentrations of new permits are concerned, Gwinnett County ranked #1 through Q3 having 2,750 housing starts on file, reflecting a year-over-year decrease of 6%.  Next in line, Forsyth County ranked second highest for total permits through the third quarter of this year.  Currently on track with last year’s figures, Forsyth is holding steady in new home construction having approximately 1,930 housing starts so far this year (thru Q3-2018).

Other areas that had noticeable changes in construction patterns include the counties of Dekalb and Clayton.  Through Q3, Dekalb has exhibited a year-over-year decrease of 38% in new home construction that resulted in 870 new permits, a stark contrast to the four-year growth pattern that has been on record for the area since 2014.  While Clayton County broke its growth pattern in 2017 with an 11% drop in new home construction, this year the area has experienced an even greater drop in housing starts.  With a whopping 72% year-over-year decrease in residential construction permitting activity, Clayton is having a slow year to say the least.

When reviewing higher value construction (home value > $500k), Fulton County ranks #1 for total higher value housing starts so far this year.  Out of the 1,877 new residential construction permits in Fulton (thru Q3-2018), 14% (260 permits) of them were for higher value properties; at this rate, the area is expected to exceed last year’s figures by a small margin.

Information utilized for the above listed figures for metro Atlanta residential construction was directly derived from HBW construction data reports. To gain access to the HBW database and receive custom and detailed reports on the latest residential and commercial building activity in Florida, Georgia, Texas, Alabama, and Oklahoma, please contact HBW for details.

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