As mentioned in my previous post, HBW’s annual reports are here, and I am here for it. While annual data may sound overwhelming at first, HBW’s reports make it easy to review and gather the information that is most important for construction professionals.

Last year, the new residential construction landscape in the Atlanta area reflected a market in transition—tempered by cyclical contraction, yet punctuated by pockets of notable growth and an expanding appetite for higher‑value builds. Drawing on HBW’s comprehensive Building Activity Trend Report for Metro Atlanta, which aggregates permit data across 24 counties, we will examine annual performance, regional concentration, and emerging patterns that industry professionals should monitor as they plan for 2026 and beyond.

Annual Permit Activity

HBW recorded 19,529 new residential construction permits across Metro Atlanta in 2025. This figure represents a 12% year‑over‑year decline, signaling a reversal from the modest rebound observed in 2024.

To contextualize this shift, consider the preceding years:

• 2021: +21% YoY increase
• 2022: –18% YoY decrease
• 2023: –7% YoY decrease
• 2024: +6% YoY increase
• 2025: –12% YoY decrease

The above listed pattern illustrates a market characterized by ebb and flow rather than linear progression. For builders, developers, and construction service providers, such oscillation underscores the importance of agile forecasting, diversified project pipelines, and focused monitoring of regional demand indicators. The 2025 downturn does not necessarily signal structural weakness; instead, it reflects a recalibration following a brief recovery period and ongoing macroeconomic pressures including but not limited to interest rate volatility, labor constraints, and material cost stabilization.

Top Counties by Permit Volume

Despite the overall decline, several counties continue to anchor the region’s residential construction activity. The top five counties by permit volume in 2025 were:

1. Gwinnett County: 2,962 permits (–29% YoY)

Gwinnett stands as the region’s highest‑volume county, though its 29% contraction is one of the most pronounced among major markets. This decline suggests a cooling of previously robust submarkets and may be indicative of saturation in certain corridors.

2. Fulton County: 1,593 permits (–14% YoY)

Fulton posted a 14% year-over-year decrease in 2025. Notably, this follows a 26% increase in 2024, making the 2025 decline potentially closer to normalization than a complete downturn. Fulton’s long‑term trajectory still reflects resilience, supported by sustained infill development and high‑demand urban and suburban pockets.

3. Hall County: 1,547 permits (+14% YoY)

Hall County stands out as one of the few high‑volume counties demonstrating year‑over‑year growth. Its 14% increase in 2025 builds on the momentum of the previous year and positions Hall as a rising hub for new residential development.

4. Cherokee County: 1,484 permits (–13% YoY)

Cherokee experienced a 13% decline, consistent with broader regional contraction. However, its continued high volume underscores its ongoing desirability.

5. Forsyth County: 1,277 permits (–11% YoY)

Forsyth’s 11% decrease mirrors the Metro’s overall trend. Despite the decline, Forsyth remains a leading market in terms of volume in comparison to most counties reviewed.

Counties Demonstrating Growth

While many counties contracted in terms of volume, several posted meaningful year‑over‑year gains:

Hall County: +14% YoY

As previously noted, a continuation of its upward trajectory, Hall’s growth signals expanding demand and increasing developer interest.

Barrow County: 1,060 permits (+20% YoY)

Barrow is one of the most consistently expanding markets in the region:

• 2023: +24%
• 2024: +12%
• 2025: +20%

The three‑year pattern of sustained growth suggests structural demand drivers rather than short‑term fluctuations.

Douglas County: 640 permits (+6% YoY)

Douglas posted a modest but meaningful 6% increase, reinforcing its position as a stable, steadily growing submarket.

Carroll County: 519 permits (+5% YoY)

Though smaller in volume, Carroll’s 5% increase reflects a healthy market relative to its size and adds to the previous year of growth.

Clayton County: 443 permits (+33% YoY)

Clayton’s 33% surge is one of the most dramatic percentage increases in the region. While total volume remains modest, the spike is noteworthy and may signal early‑stage revitalization or shifting affordability dynamics.

Higher‑Value Construction ($500K+)

One of the most compelling insights from the 2025 data is the expansion of higher‑value residential construction. Several counties exceeded their 2024 totals for homes valued above $500,000. Here are a few counties worth noting:

Gwinnett County

In Gwinnett County, higher‑value residential construction activity demonstrated remarkable acceleration throughout 2025. For higher value projects, the county recorded 240 permits in the first quarter, followed by 330 in the second, 249 in the third, and 209 in the fourth, bringing the annual total to 1,028 permits. This represents a dramatic increase compared to the 513 higher‑value permits issued in 2024, effectively doubling the volume year over year. Such a surge signals a meaningful shift, with demand clearly trending toward more premium residential offerings

Fulton County

In Fulton County, higher‑value residential construction reflected an upward trajectory in 2025. The county recorded 581 permits for homes valued above $500,000, an increase from 461 such permits in 2024; this growth underscores the sustained demand for premium housing across both its urban cores and suburban submarkets.

Cobb County

Cobb County also demonstrated substantial momentum in the higher‑value construction segment. In 2024, the county recorded 157 permits for homes valued above $500,000. By 2025, that figure had climbed sharply to 336 permits, more than doubling from the previous year; this notable increase highlights a strengthening demand for premium residential construction within Cobb’s established suburban markets and signals a continued shift toward higher‑end development activity in the area.

Cherokee County

In Cherokee County, the higher‑value segment remained robust, though it experienced a slight year‑over‑year contraction. The county issued 540 higher‑value permits in 2025, compared to 591 in 2024. Despite the modest decline, Cherokee continues to demonstrate strong market fundamentals and consistent demand for upper‑tier residential product.

What Do These Trends Mean for Builders?

The 2025 report paints a picture of a market undergoing strategic recalibration rather than systemic decline. Key takeaways for industry professionals include:

• Demand is shifting geographically, with growth migrating toward emerging counties such as Barrow, Hall, and Douglas.
• Higher‑value construction is expanding, even as overall permit volume contracts—suggesting a branching of the market and a resilient upper‑tier buyer segment.
• Volatility in annual permit activity highlights the need for flexible planning, diversified land positions, and proactive risk management.
• Counties with sustained multi‑year growth (e.g., Barrow and Hall) may represent real and reliable opportunities for future investment.

For builders, developers, and suppliers, such shifting patterns underscore the importance of data‑driven decision‑making. Monitoring permit activity at both macro and micro levels enables stakeholders to anticipate demand shifts, optimize resource allocation, and align offerings with evolving market conditions.

While overall permit volume declined in Metro Atlanta last year, the rise in higher‑value construction and the growth of several key counties demonstrate that demand remains robust—albeit redistributed and increasingly segmented. As the region continues to evolve, HBW’s permit data remains an indispensable tool for construction professionals seeking to navigate shifting market dynamics with precision and foresight.

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.