The Multifamily Market: Solutions + Trends for Atlanta Homebuilders
Randy Hanscom
We know how much of a roller coaster it’s been for our customers, builders and other professionals in the construction industry, especially with economic instability and supply struggles these past few years. The multifamily market has been no different, so we sat down with one of our team members to talk about the building market and what the future might look like for multifamily homes and homebuilders. Unsplash
Trends in Homebuilding and Home Buying
Besides a pandemic and an unpredictable economy, there are some other factors that impact today’s residential builders and homebuyers.
“It’s not just the cost of homes, but the cost of land to build the homes on, cost of materials and goods to build the homes. And then we’re also seeing a shift in the type of buyer, especially the Gen Xers and Baby Boomers,” explains John Donkar, head of Installed Services at Brand Vaughan.
“The build-to-rent factor is playing a role in the industry, too. That has been in the market since 2012-2013. That was a clean-up of all the old lots that were purchased post-housing market crash of 2008.” That means more townhomes, more duplexes and more options for families who want affordable housing options.
“Now, the majority of Brand Vaughan’s work is in the build-to-rent market, both inside and outside of the city,” he says.
“The Type of Home Buyer Has Changed.”
Brand Vaughan works with builders, designers and homeowners in the Atlanta market, and we’ve noticed how different the needs of customers can be. This is especially true among different generations of home buyers, and John helped us understand some of these trends.
“The Gen X and Baby Boomers are moving from larger homes to townhomes and smaller types of established attached homes,” explains John. “And Gen X is either on their 2nd or 3rd home purchase.”
The largest market of homebuyers right now is Millennials, and this younger generation of consumers has grown up with a different mindset and economy than older demographic groups. “It’s really interesting to look at patterns over the last 50, 60, 70 years. Millennials don’t want maintenance — they want the ability to move around,” explains John.
He also says that Millennials don’t necessarily want to upgrade every time they move. In fact, many home buyers are looking for smaller, affordable living spaces. “The move-up segment is not a huge corner of the market right now,” says John.
What’s Different and What to Expect
Remote work gained popularity during COVID’s quarantine days, as many of us remember.
“Specific to townhomes, the COVID era established the work-from-home mentality and the need for personal space,” says John. “Atlanta is in need of housing really badly to catch up to demand for that.”
Multifamily housing is a solution for remote workers who need to upgrade their living environment to cater to the work-from-home lifestyle. “Town homes with small yards and a single-car garage are pulling more of that market over,” says John. “People who want a single-family home, but can’t afford it, lean towards a townhome.”
For many in the Southeast, however, inflation and cost-of-living have taken a toll. “Going into 2025, it will highly depend on interest rates and housing availability,” says John. “That is what’s forcing people into the build-to-rent community.”
How Atlanta Homebuilders Can Plan Ahead
“It can be completely different whether you’re in Nevada or Texas or here in Atlanta. So it’s really interesting to see how things are progressing,” says John. “The one thing we are seeing, though, as far as homes are concerned, [is that] traditional single-family home sales in the $800,000 plus range are still thriving.”
We can try to predict other trends in the next few years, but for now, there’s one guarantee. People need homes. “Atlanta is in an extreme need for housing right now. We’re still in need of 72,000 homes to catch up to current demand. Our annual demand could be anywhere from 50,000 to 60,000 homes a year being built,” says John.
Brand Vaughan is dedicated to supporting home builders in the Atlanta area, especially with the current market being so unpredictable. Brand Vaughan also wants to see more affordable options for homeowners in the Atlanta area. ”Unless you have a couple of hundred thousand dollars to put down on a house to afford the payment or some other form of relief, you’re really locked out of certain markets,” says John.
Working with Brand Vaughan means having support with all of your projects, including installation. “We offer turnkey framing, windows, doors, housewrap, siding and interior trim. A majority of the products we sell, we also install.”
It’s part of Brand Vaughan’s mission and bottom line to be of service to Atlanta home builders and buyers. “It’s being able to purchase and achieve that ‘American dream’ of homeownership, whether it’s a townhome, duplex or a traditional single-family home,” says John.
Learn more about working with our team: contact us to start your project today.