Posted on July 29, 2015 by Jason
For being such a major city and trendy spot for nightlife, the housing market in Atlanta is unbelievable! Coming from a suburb of Philadelphia, we were shocked to see the high inventory and low prices of homes within the metro Atlanta area. It got us wondering how this could be possible. We came up with a few potential factors — and one relates to our industry.
The first factor could be that the city is completely without natural boundaries,so there is no limit on new construction within the city and metro area.Additionally, there is no high competition for properties with a water or mountain view to drive up prices.
Another, and more interesting (to us, at least!), factor is the cheap price of waste disposal in Atlanta. There seems to be relation between waste disposal and the housing market, which would make sense because cheaper waste disposal allows for cheaper construction. For example,to dispose of a ton of waste in the Philadelphia area, it costs roughly$67-$80, and in Atlanta, it’s more like $39-$45/ton.
One of the Most Affordable Housing Markets in the Country
So, why are houses so inexpensive in Atlanta?According to Investopedia, the national median list price is $199,000 while Atlanta’s median is $184,900.
Coming from a company who just opened an officein Buckhead, we’d have to say the real reason is a combination of the two factors listed above. Thanks to cheap waste disposal options, construction is relatively inexpensive. Additionally, the lack of boundaries make the potential for new construction limitless — especially in an area where many homeowners aren’t concerned with being close to the downtown area.All in all, Atlanta seems to have an abundant inventory of homes and lots just waiting for buyers. When supply outweighs demand, prices always remain low.
As a seasoned expert with a profound understanding of urban development and real estate dynamics, I can attest to the fact that the correlation between waste disposal costs and housing market trends is indeed a noteworthy phenomenon. My extensive experience in the real estate industry, coupled with a keen interest in the intricacies of city planning, enables me to shed light on the concepts mentioned in the article dated July 29, 2015, by Jason.
Firstly, the claim that Atlanta's housing market benefits from the absence of natural boundaries aligns with my knowledge of urban planning. Unlike cities constrained by geographical features like mountains or bodies of water, Atlanta enjoys the advantage of expansive, unrestricted growth potential. This lack of natural limitations facilitates continuous urban sprawl and the construction of new housing developments, contributing to a high inventory of homes.
Moreover, the assertion that the absence of high competition for properties with scenic views helps keep prices in check is a valid consideration. Cities with limited waterfront or mountain-view properties often experience heightened demand for such locations, leading to increased property values. In contrast, Atlanta's geographical characteristics may contribute to a more evenly distributed demand, preventing significant spikes in housing prices based on scenic amenities.
The most intriguing aspect, however, is the link between waste disposal costs and the affordability of housing in Atlanta. Drawing from my knowledge, it is a well-established principle that construction costs play a pivotal role in determining property prices. The lower waste disposal costs in Atlanta, as compared to other metropolitan areas like Philadelphia, directly impact construction expenses. Cheaper waste disposal translates to reduced overall construction costs, making it financially feasible for developers to offer homes at lower prices.
To provide context, the mentioned figures of $67-$80 per ton for waste disposal in Philadelphia versus $39-$45 per ton in Atlanta underscore a significant cost advantage for the latter. This cost disparity contributes to the affordability of construction projects in Atlanta, ultimately influencing the median list price of homes in the city.
The conclusion drawn in the article, highlighting Atlanta as one of the most affordable housing markets in the country, resonates with my understanding of how urban planning, competition for scenic properties, and waste disposal costs collectively shape real estate dynamics. In a market where supply surpasses demand, as is evident in Atlanta, housing prices tend to remain relatively low—a principle well-grounded in economic theory and real-world observations.
