Amid a nationwide slowdown in the housing market, the Southeastern region of the U.S. is showing some resilience. According to a recent survey from John Burns Research and Consulting, Southeastern builders and developers are navigating a shifting landscape filled with both challenges and opportunities. Nationally, the housing market has experienced a sharp drop in sales, but the Southeast saw a smaller 7% decline in net sales from June to July 2024. However, the region still faces significant barriers, with home builders and developers in the Southeast noting rising impact fees and sluggish code inspections, among other challenges right now. Despite these hurdles, builders and developers in the Southeast are also seeing opportunities for growth, such as:
- Improving build cycle times: Faster construction timelines allow builders to complete homes more quickly and predictably.
- Legal changes in Tennessee: New legislation should speed up the home inspection process by allowing builders to engage private inspectors from a sanctioned list. In addition, developers will be able to create new special financing districts, like those in Texas, Florida, and California. These districts could drive large-scale community development by financing utility and infrastructure improvements, increasing new home supply.
- Migration to outlying counties: Many households now choose to move to more affordable rural areas, including places like Jefferson and Hall counties in the Atlanta metro. Builders can meet this demand by pursuing deals in these locations.
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