Building Costs Per Square Foot in the City of Atlanta (GA), USA

Residential Construction Market Analysis in the City of Atlanta (GA), USA

Newly Built House in Atlanta 512 Deleven Street SW GA-30310 – 4 Bed and 3 Baths with Garage on Gross Floor Area 2,100 sqft – Built in 2022 – Price $649,000 (1)

Building costs are 12% above the national average in the City of Atlanta in Georgia. Everyone dreams of having their own house, but as time goes by this seems to be something more impossible to achieve. Prices are rising, and wages seem to be getting lower. When you feel that there are no chances to buy a property, we recommend that you start to find out about the real estate market in those places that are not as well known as NYC, Chicago, or Los Angeles.

There are real estate markets with affordable properties, and one of them is the City of Atlanta, Georgia. A few years ago Atlanta only seemed in the news for its crime rate, but today it represents a safer city, worthy of being a city to raise a family.

In this article, we will tell you everything you need to know about this real estate market. From the current values of the properties to data on how they are expected to evolve shortly, and the real estate projects to look out for.

Atlanta (GA) Construction Outlook

Atlanta’s construction outlook is one of the most amazing in all of Georgia. It is a city that has a skyline worthy of a big city, with modern and glazed buildings. In addition, thanks to investments from the city government there was a renovation of the facades of some old buildings, so today they have a more modern look.

Not everything is buildings in Atlanta, other types of properties are the real stars. Townhouses in particular are a staple of Atlanta’s outlook. These are built with good materials since there are usually several storms throughout the year. Even the houses that you see that are made of wood or prefabricated have some kind of extra protection inside since otherwise they could be destroyed.

The information about the climate in Atlanta is something that you should take into account if you are looking to buy a lot to build property since you should invest in good materials to prevent everything from breaking after the first rain.

On the outskirts of downtown Atlanta, you’ll find single-family homes of lower or middle-class families. In some cases they were built in the 90s, so they were a bit outdated compared to the constructions that exist today in big cities.

Atlanta (GA) Housing Market Analysis and Forecast

The real estate market in Atlanta, Georgia is throwing up some pretty bullish numbers, for everyone involved. This means that sellers, investors, and buyers all benefit from the current state of the Atlanta real estate market.

All properties saw a 12% annual increase in their values, and this same trend is expected to repeat throughout 2023. However, it is expected that there will be the last drop in property prices during December since the demand for properties always tends to go down.

Houses tend to be listed an average of 26 days, up from 27 last year. This number may make it seem like it takes a long time to sell, but it’s actually a big number and it’s the best historical average. During 2021 there were months where they took up to 70 days to sell, so if you look at these 26 days in comparison it makes it look much better.

A somewhat discouraging number is the number of properties that are being sold. At a general level this year, 28% fewer properties were sold compared to last year, but the great cause of this lower number is that fewer houses were also listed than in 2021.

Atlanta (GA) Average House Price (Median Home Price)

The median home price in Atlanta Georgia is $396,000, down 9% from last year’s value. It should not be forgotten that the median home price is made up of most of the properties for sale, so there is a great variation in that price about what happens in reality.

For example, in the case of single-family homes, the average is $545,000, much higher compared to the other average number. This does not mean that the account is poorly done, but rather that in Atlanta single-family homes have a higher value due to their higher demand.

In the case of townhouses, the average value is $480,000, 11% more compared to last year. Its value is expected to reach a maximum in 2023, close to $500,000, but this depends a lot on external regulations, such as if a new tax appears in the city.

Condos/co-ops are the properties that make the median home price low, as they average $260,000. They are much cheaper than the other two types of properties currently named, but this is also due to their characteristics. These properties in Atlanta are small, and also tend to be made with precarious materials or be old, that’s why they are so cheap.

Proposed Residential Building Projects in Atlanta (GA)

In Atlanta, there are a lot of real estate projects and all kinds. Atlanta is seeking to position itself as a benchmark city in the region, and for that very reason, there are a large number of laws that encourage real estate investments (because there are fewer restrictions and lower taxes).

This makes the city a paradise for real estate investors and projects of all kinds appear. One of the main ones is building projects. They are a large number and large buildings that exceed 20 floors. These buildings are modern in concept, like those built in recent years in this city. These buildings will be residential since office buildings are not of this type of height.

There are some residential house projects, but not luxury houses. Do not forget that Atlanta is historically inhabited by a population of middle or lower class, and this is something that investors know. For this reason, the residential properties that are coming are modest houses.

In the case of the projected single-family homes, these are prefabricated from wooden materials. Even the wooden ones have some kind of waterproof material since Atlanta storms are very strong. Then, there are condominium projects in the very center of the city, the same as the townhouses, although a few blocks from the financial center.

Under Construction – Newly Built House in Atlanta 3910 Powers Ferry Road NW GA-30342 – 6 Bed and 7 Baths with 4 Attached Garages on Gross Floor Area 10,057 sqft – Built in 2022 – Price $6,995,000 (2)

Building Costs Per Square Foot for Single Family Homes in the City of Atlanta (GA), USA

Building costs are 12% above the national average in the City of Atlanta in Georgia.

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Atlanta City ranges from $386.28 per sqft to $592.14 per sqft, with the average being $455.86 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Atlanta City ranges from $234.76 per sqft to $359.86 per sqft, with the average being $277.04 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Atlanta City ranges from $151.76 per sqft to $230.51 per sqft, with the average being $177.68 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Atlanta City ranges from $110.76 per sqft to $169.85 per sqft, with the average being $130.71 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Atlanta City ranges from $89.90 per sqft to $137.68 per sqft, with the average being $106.01 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Atlanta City ranges from $70.91 per sqft to $108.68 per sqft, with the average being $83.65 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.