This year is shaping up to be a hugely positive one for residential construction in Metro Atlanta, according to the latest numbers from Dodge Data & Analytics.
In February, residential construction spending in Metro Atlanta totaled $648 million, a 61 percent increase from Feb. 2015; even more encouraging, year-to-date spending now totals $1.143 billion, which is a 43 percent increase over the same time period in 2015.
New Construction and the Current Housing Market
Not only is Atlanta’s February spending strong, but additionally, its year to date jump is among the strongest in the nation.
That said, there is no direct link between rising construction spending and housing’s current affordability ills, and for one simple reason – multifamily housing. According to Census Bureau numbers, of the 6,628 building permits issues in Metro Atlanta so far this year, 3,257 of them (or 49.14 percent) were for multifamily buildings with five or more units. Atlanta’s housing inventory is currently at a 3.0-months supply (or half what it should be), and if those kinds of permitting numbers persist, than the area’s construction spending will continue to go towards multifamily rental housing.
Here is a chart breaking down Dodge Data’s numbers in more detail:
|Metro Area||Residential Construction Spending, Feb. 2016 (in millions)||YOY Change||YTD 2016 Construction Spending||YTD Change|