Metro Atlanta home price climb is fourth-fastest nationally (rent, houses)

[toll_booth]

Originally Posted by Need4Camaro

Thing is while Atlanta was known for affordability, greed exists nationwide. So if investors or politicians see demand to live in an area they will do whatever they can to absorb the most cashflow from that influx. People from much more expensive metros for example are grabbing homes up that they wouldn't otherwise beable to afford where they came from...while at first this sounds good, it results in a housing shortage for the locals who do not have the same equity ... For example you sell a home in Los Angeles you walk away with $800k or more. move to a southern metro and grab atleast 2 homes, live in 1, invest and lease out the others...instant cash flow... If however you were local to Atlanta and sell your home in Atlanta and you aren't getting in another one without more money to go with your trade because the increase of values... you might walk away even but it depends. So even though Atlanta is not as large as the metros such as Los Angeles, San Francisco, NYC, Chicago, ect... Housing is filling up faster than it can be replenished thus causing an artificial shortage and pushing other potential buyers into rentals or apartments because they cannot afford to buy.

Remember all the Illinois license plates that were around metro Atlanta a few years ago? To them our real estate is cheap. So they could snap up homes that were twice the size for the same cost.

Not complaining at them, just echoing what you said.

[NorthAtlanta]

Originally Posted by toll_booth

Remember all the Illinois license plates that were around metro Atlanta a few years ago? To them our real estate is cheap. So they could snap up homes that were twice the size for the same cost.

Not complaining at them, just echoing what you said.

Yes, I think those days are coming to end though. Now, someone has to be from NYC or LA to afford two homes here for the price of one, at least in the nicer parts of the Atlanta metro area..

[jero23]

Tier 2 cities are just going to grow and gain lack of affordability from this instead. It's capitalism at its best and worst.

[Need4Camaro]

Originally Posted by NorthAtlanta

Yes, I think those days are coming to end though. Now, someone has to be from NYC or LA to afford two homes here for the price of one, at least in the nicer parts of the Atlanta metro area..

Yeah TBH there isnt much a price difference between living in someplace like Alpharetta, Johns Creek, Milton and even Peachtree Corners as to say Naperville or Buffalo Grove suburbs in Chicago.

NYC and its afluent suburbs however are still a good bit higher however.

[brownhornet]

It's much worse for renters. Last I looked Atlanta was #1 or #2 for fasting rising rent. For some reason people celebrate this. Yea, it's cool if you already own but if you don't or if you rent it's absolutely terrible. We're going to end up being another over priced metro area like LA, DC or NYC.

[Gulch]

Originally Posted by brownhornet

It's much worse for renters. Last I looked Atlanta was #1 or #2 for fasting rising rent. For some reason people celebrate this. Yea, it's cool if you already own but if you don't or if you rent it's absolutely terrible. We're going to end up being another over priced metro area like LA, DC or NYC.

What's your solution then?

[DaBurgh]

We have lots of room left for infill

Accelerate the gentrification of areas south and west of the city - better pay for teachers and police, incentives and bonuses to live in these areas, better schools will bring more investment and housing options

[Need4Camaro]

Originally Posted by Gulch

What's your solution then?

Unfortunately there is no easy solution but I have heard that our government has alot to do with it due to the restriction of building denser communities where they are needed thus pushing the existing dense communities in higher demand and escalating their prices. Low density developments can only sprawl so far before they become too inaccessible from job locations or they plainly run out of land. Those developments also face developmental restrictions, but not as much as dense development. In a sense so much has to be approved before new housing developments can go up that they literally cannot keep up with demand therefor creating artificial shortages.

[citidata18]

Originally Posted by Gulch

What's your solution then?

The problem isn't a lack of solutions, but a lack of will power to implement them.

[arjay57]

Originally Posted by Need4Camaro

Unfortunately there is no easy solution but I have heard that our government has alot to do with it due to the restriction of building denser communities where they are needed thus pushing the existing dense communities in higher demand and escalating their prices. Low density developments can only sprawl so far before they become too inaccessible from job locations or they plainly run out of land. Those developments also face developmental restrictions, but not as much as dense development. In a sense so much has to be approved before new housing developments can go up that they literally cannot keep up with demand therefor creating artificial shortages.

The problem is that when you allow more density developers just slap up more ultra-expensive housing that is way beyond the means of ordinary folks.

By contrast, most reasonably priced housing gets built in lower density areas.