3 minute read
Housing supply, prices may rise in coming years
By TOM SPIGOLON
tspigolon@covnews.com
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The supply of new housing in Newton County and Metro Atlanta may grow in coming years but some industry reports say home prices also could continue their recent increases because of demand spurred by the area’s projected job growth and population increases.
The average sales price of a single-family residence in Newton County in March of this year had increased 5% in one month and 23% in one year.
Median price of a home in Newton County increased to $295,000 in March from $240,000 in the same month of 2021, according to the Georgia Multiple Listing Service.
However, some of the price increase can be attributed to a lack of supply and one industry expert said local governments can help encourage new development.
Dena Lynn Sosebee, president of the Covington-based East Metro Board of Realtors, said the future supply of housing is dependent on a number of factors, such as building material prices and availability, according to national news reports.
Sosebee also said policies of any area’s planning and zoning boards concerning housing densities and timing of growth affect the supply, as well — though she did not single out any single governmental entity in the area.
She said if any county governing body decided to make less land available for residential construction, the result could be higher costs because less supply of new housing would be available.
“It’s how many they will allow,” she said.
In metro Atlanta, new housing construction is a product of both the residential and industrial sectors, according to a report in Atlanta Agent magazine.
It also reported that the metro area — in 2020 and 2021 — saw
The Rotary Club of Covington serves Newton County through its Empty Stocking Fund, Top 10 students and Camp Sunshine projects, along with nationwide and international contributions. The club, formed in 1939, meets for lunch, an informative program and networking every Tuesday at noon at the Covington First United Methodist Church. Visit www.rotarycovington.org for more information about your club.
Dena Lynn Sosebee, president of the Covington-based East Metro Board of Realtors, said if any county governing body decided to make less land available for residential construction, the result could
be higher costs because less supply of new housing would be available. Metro Creative
its top years for new home construction in the past decade. That could imply more supply and lower prices are on the way in coming years.
According to the real estate data advisory service Mashvisor, the predicted price of a home in Metro Atlanta will be $284,598.
Georgia will see “bigger boosts in housing construction and benefit from automotive industry gains” this year, Mashvisor reported.
It stated the Metro Atlanta region’s relatively lower cost of living, job growth and quality of life currently are combining to bring pressure on the real estate market and will continue to do so in the coming decade.
The real estate market in Georgia is expected to keep growing due to the number of jobs in Atlanta, it stated.
Around 1.2 million jobs are expected to be added to the Atlanta metro area by 2050. In the last five years, Atlanta’s job growth averaged 2.3% annually, outpacing the national average of 1.6%.
“The attractive cost of living and a multitude of jobs in various industries has made Atlanta one of the hottest residential and labor markets in the country. It continues to grow in terms of population and employment.
“While Georgia has been adversely affected by the pandemic, it did not suffer ruthless job cuts compared to other parts of the country.
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