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 office in 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.