Due to the city’s rapidly rising housing expenses, Atlanta residents are finding it extremely difficult to find homes for themselves and their families that are both sufficient and, more crucially, affordable. Given the rate at which prices are rising, according to Maxwell Drever of drever capital management and his analysis of Atlanta’s affordable housing market, the situation will likely spiral out of control for all parties involved. These issues are brought on by a number of factors, all of which are becoming increasingly significant.
Many Atlanta areas, including Gwinnett County, are concerned about the scarcity of reasonably priced workforce housing. As they search for housing options near their children’s schools and their own workplaces, residents are still pondering their options. The suburbs of Atlanta were formerly regarded to be reasonably priced, but that is no longer the case. Rental prices in particular have risen to the point where they are comparable to those in the state’s major cities.
Maxwell Drever lays out the factors to help evaluate the problem carefully and identify what is causing it to get worse.
The Plethora of Issues per Maxwell Drever
Housing prices are growing swiftly for a variety of reasons, particularly in suburbs like Gwinnett County. Due to reasons like the region’s rapid population growth, infrastructure improvements, labor scarcity, and material limitations, affordable housing projects there are experiencing difficulties. The COVID-19 outbreak, which has impacted supply networks for the construction industry, has led to significant delays in development.
Severe Circumstances for Those at the Bottom of the Pyramid
Atlanta’s soaring rental prices are a source of worry, especially for people with low and moderate incomes. However, because of recent price hikes, they are no longer able to afford the rent or mortgage payments for these homes, even though they are the target market for affordable housing initiatives. According to Maxwell Drever, the people who are battling the most are those who are just starting out in the job as well as those who work in fields like nursing, volunteer work, early career teaching, and new instructors.
The Cost of Rental Properties in Gwinnett County
The second-largest county in Georgia and Atlanta, Gwinnett, has mostly avoided damage while the affordability debate has dominated Atlanta politics. However, after hearing the depressing initial findings of the county-wide research by KB Advisory Group, commissioners allocated $250,000 last month to develop an extensive affordable housing plan. However, the median rent in Georgia has increased to more than $1000, therefore over 76% of the state’s housing needs are still unfulfilled.
Maxwell Drever about the Situation Right Now
The scenario is anticipated to hold steady until 2040 if development continues at the current pace. For instance, Gwinnett County is expected to have 1.5 million residents by 2040, up from its 2020 population of 957,000. Because just 2% of households with annual salaries of $50,000 or more can buy properties in the county, the remaining households have few to no housing options.
Maxwell Drever claims that the authorities are concerned about this problem. Given the state’s rapid growth, more thought needs to be given to the prospects for affordable housing in the area.