Buying a home continues to be a struggle for many young Georgians and first-time home buyers.
Georgia ranks eighth for the most undersupplied housing market in the country, according to housing advocacy group Up for Growth.
Richard Ross is the CEO of Quinn Residences, an Atlanta-based real estate development that builds single-family homes only for rent.
He says that with mortgage interest rates still high for many buyers, tight housing supply and housing affordability at a multidecade low, some people are turning to “build-to-rent” homes.
“We offer three and four-bedroom homes, two-car garage, fence, backyard. We want that lifestyle. The only way a lot of them can afford it is to rent,” said Ross.
According to real estate company Redfin, Atlanta home prices were down by about 9% in June compared to last year, selling for a median price of around $400,000. Mortgage interest rates sit at 6.8% according to the Atlanta Fed Reserve.
As more Georgians continue to struggle to afford a home, Ross expects to see rental properties and communities grow here.
Setting the foundation
Quinn Residences focuses primarily on the Southeast, with just over 2,000 homes in Georgia. Rents range from $1,800 a month to roughly $2,200 a month.
“We provide all the maintenance,” Ross said. “You get a fence backyard, you get this technology package, you get a garage and all of that is included.”
Except you don’t own it and can purchase that particular home.
“You’re taking away that investment opportunity that you have with home ownership, right? But for some people, that might not be a good idea, but for some others, it will be a very good idea,” said Sergio Gárate, director of the Real Estate Program at Emory University’s Goizueta Business School.
He adds that owning a home is an asset. Homes, especially in Atlanta, appreciate in value often to the homeowners’ long-term benefit.
Gárate adds that you can increase your chances of homeownership by moving outside of the metro.
“There will be opportunities for people to trade an extra 20 minutes of commute in order to afford something,” said Gárate.
