Ready to build your dream home in Atlanta? Discover expert tips and guidance to make your dream a reality. Start today!
Atlanta, Georgia continues to be one of the country’s most exciting cities, with a host of restaurants, shopping centers, and entertainment venues to appeal to locals and tourists alike. Not to mention its growing reputation as the “Hollywood of the South” due to the many blockbusters that have been filmed on its backlots. But of all of its draws, one of the best things Atlanta has going for it is the city’s abundance of distinct neighborhoods –– each with its own unique charm and character.
The hype around Atlanta and its myriad suburbs has, unsurprisingly, driven prices on available housing skyward: the average home price now hovers around $400,000 compared to $305,000 just five years prior. And with steady demand and limited inventory, tense competition means homes go to pending in less than 25 days.
But all hope is not lost for those hoping to make a home in the ATL. As many aspiring Atlanta residents have found, building from the ground up may not just be the best way to find a new home –– it may be the only way to find the perfect home for you. Should you decide that building a home in Atlanta is the best option, read on for our tips to get the most out of it.
As briefly mentioned above, home prices in Atlanta have risen substantially in the past five years and remain near recent highs. However, elevated prices and relatively quick sales are not the only factors to consider when examining Atlanta’s housing market. Architectural factors, like those that come into play when looking for a luxury home with a sprawling floor plan in North Atlanta, can significantly increase the cost.
Here are some Atlanta housing market statistics (at the time of writing), at a glance:
These facts about the Atlanta housing market begin to paint a more vivid picture, highlighting some of the key reasons why building a home in Atlanta may be the better option. Now, let’s explore some of the ways to make the most out of building a home in Atlanta.
There are dozens of neighborhoods in Atlanta, and the differences between them can often be glaring. So, while you may have decided that you want to build a home in Atlanta, you’ll have to be a bit more specific to narrow down your search. Use these criteria as a starting point.
There is perhaps no greater difference between Atlanta’s many neighborhoods than their individual price tags. For building or buying, the posh Buckhead section of the city –– where you’re likely to brush elbows with NBA players, Elton John, and other notable residents –– tops the range at a median listing price of $750,000. Little Five Points, on the other hand, offers more of a range: listings can be found anywhere from $250,000 to $1 million+. Looking for more of a bargain across the board? Consider Underwood Hills, where the average home price hovers closer to the national average.
While these are prices on already built homes, they can serve as an indicator of construction and land costs. Be sure to properly research how to finance building a house before purchasing an empty lot.
Your lifestyle will also determine which Atlanta neighborhood is right for you, as different suburbs cater to different ways of life. Midtown offers a bustling metropolitan feel, with bars, clubs, and late-night entertainment aplenty. Alpharetta, north of the city, on the other hand, lends itself to a slower pace of life with a true community feel. Somewhere in the middle lies Decatur, which caters to families and foodies alike with a blend of small-town vibes and big-city perks. If none of these sound like you, don’t fret: there’s an Atlanta neighborhood for virtually every lifestyle, and you’re sure to find that perfect fit.
The last filter to find your perfect location is the types of amenities available, like quality schools, abundant entertainment, or shopping and dining. If your reasoning for building a home is to accommodate a growing family, you may gravitate toward areas with top-rated schools –– like Druid Hills or Decatur. If you’re building in Atlanta to be close to the best the city has to offer, L5P may be your best bet.
Once you’ve settled on your ideal location, the challenge of finding a lot begins. In some of the hotter Atlanta neighborhoods, finding a plot of land can be as taxing as scooping up an already-built home. Be patient with the process, ensuring the plot you end up with aligns with your needs and has been inspected for buildability.
With your ideal location selected and lot secured, you can begin exploring the ins and outs of the homebuilding process. From the outside and as a first-time builder, the process can seem highly involved. And, in fairness, it is. But homebuilding is an established industry, and the professionals you work with will keep the ball rolling so you don’t have to worry about the details along the way. However, there will be places where your input is not only necessary but invaluable –– like the design process, for example. And depending on your chosen level of customization, your input may not even end at the design stage.
When building from the ground up, there are generally two types of homes: custom and spec. Custom homes refer to homes designed specifically with your exact needs in mind. Every detail, down to the layout, architectural style, and shingle pattern, is hand-picked –– the end result is as unique as your fingerprint. A spec house, on the other hand, refers to a home built according to a builder’s predetermined plan. You’ll be able to customize things like floorplans and finishes to an extent, but for the most part, the design process will amount to checking boxes on an option sheet.
The trade-off, of course, often amounts to a much lower cost. Should you opt for a custom home, you may be more involved at various stages of the building process. Whereas with a spec home, you can expect to be more hands-off.
When building a home in Atlanta, the importance of choosing the right builder cannot be overstated. The right builder can make a world of difference in keeping your build on schedule and on budget, and having a builder with local experience can minimize your stress throughout the entire process. Here are some steps to help you find the best builder for your project.
Thoroughly researching builders will save you time, money, and energy in the long run. Carefully look for builders who specialize in your chosen architectural style, using online resources –– such as the National Association of Home Builders (NAHB) website and even Yelp or Google reviews –– to find certified builders near you.
After you’ve compiled a short list of potential builders, vet each of them by cross-referencing their credentials.
When you’ve narrowed down your list to just a few options, meet with the builders face-to-face (if possible) to discuss your project in detail. The right builder will provide you with a clear timeline, a detailed price breakdown, and a contract covering all aspects of the project. They should also communicate clearly and demonstrate a willingness to listen to and meet your needs.
Building a home in Atlanta requires navigating a complex web of permits and regulations. Should you choose to partner with a professional builder, however, they’ll wade through these processes on your behalf. Still, understanding the necessary permits and regulations will help you ensure compliance with local building codes and zoning laws.
So, where do you start? The City of Atlanta’s official website will be your best bet. The site maintains a comprehensive registry for homebuilders, complete with applications, informational packets, and checklists. Review these resources to better understand the building process and to keep your builders accountable.
If you have a question about these permits and regulations at any point during the homebuilding process, don’t hesitate to reach out to your builder. If you’ve selected a top-rated professional and established clear lines of communication, they’ll be able to cut through even the most intricate webs of legalese to help you understand.
Even with a competent, communicative, and experienced homebuilder on your side, building a home in Atlanta can present several challenges. Here are some of the most common hurdles and how to address them effectively.
Atlanta is a relatively unique environment—aesthetically, demographically, and in terms of climate—requiring some specific considerations when designing your home. And if you’re looking to design with sustainability in mind, you’ll have to give your design process even more thought.
Across Atlanta’s many neighborhoods, you’ll see a diverse mix of architectural styles –– from modern, contemporary structures to traditional colonial builds. You’ll want to choose the style that works best for you while also working with your surroundings. Consider the aesthetics of the homes around you and the natural beauty, but also the ways that your environment can play to your advantage: large, high-performance windows that fill your home with natural light while keeping heat to a minimum; a cooling roof; and a home that’s oriented to work with the environment rather than against it.
One of Atlanta’s biggest draws is the city’s warm, subtropical climate. Sure, Atlanta experiences all four seasons, but residents can count on hot and humid days for many months of the year. Ensure your home’s design features proper insulation, ventilation, and HVAC systems to maintain comfort all year long. Here is yet another place where you can use Atlanta’s climate to your advantage, installing solar panels to channel the beaming Georgia sun into year-round cooling.
An important note to make when building a home in Atlanta is that financing will look a bit different than when buying an already-built home. Because lenders are putting forward money for something that hasn’t been built yet, construction loans are issued in place of mortgages.
Apart from the name, construction loans function similarly to a mortgage. They’re used to cover the cost of land, labor, and materials –– including permitting and other legal fees –– and repaid via monthly payments over the life of the loan. And like traditional mortgages, they also come with closing costs: ranging from 2–5 percent of the total construction cost.
Construction loans are short-term loans, generally for a year or less. When this time is up, or when construction is complete, the loan converts to a mortgage.
Depending on the size, complexity, and uniqueness of your design, building a home in Atlanta takes roughly six months to a year. But with so many variables, it’s not uncommon for this time frame to stretch a bit. Here’s what you can do to navigate shifting timeframes successfully.
Building a home in Atlanta is an exciting process, and Truehold's flexibility can relieve much of the stress. Contact one of our advisors today to learn more about our Atlanta sale-leaseback.
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