The “bottom” for metro Atlanta housing prices
Worried house prices here around Atlanta have further to drop? Here’s a few reasons to not worry so much.
1. Replacement cost: If you had to rebuild your house on your current land, what would it cost you? Fair Market Value tends to reflect that replacement cost.
2. The US creates 1 million new households a year. The US built only a half a million new houses last year. We demolish another 250,000. So we’re running a 750,000 deficit of new houses. The deficit will catch up soon.
3. Lake Lanier. A federal court just ruled Atlanta doesn’t have preiminent right to Lanier for drinking water (or lawn water). Bad news for builders who need permits. Good news for existing homeowners who will see their values go up as the glut of empty homes dissipates.
Call me if you want pointers to these statistics.
Mike Dayoub is a fee-only investment advisor and retirement planner in Georgia. Website here.
