Where does family housing sit right now? Georgia-based experts weigh in on conditions as they see them

Times are hard for homebuyers.

The 2008 global financial crisis slowed construction, tightening housing supply. At the same time, an aging population has increased demand for homes. In the 25 years since 2000, house prices rose 65%, far outpacing income and putting the dream of a home beyond the reach of many.

How will these trends extend into 2026, and how are they affecting the development of new living spaces? A look at Atlanta can give insights for the rest of the country.

• Higher home prices slow development. “Builders are paying so much more for materials than they used to,” says Angela Hughes, Engineering Builder Services Manager at Gaskins + LeCraw, a Pape-Dawson company. High construction costs and restrictive local development rules have limited housing supply and increased home prices. “We’ve seen engineering costs of single properties triple in recent years,” says Angela. Most of that increase is due to stormwater management, she adds, which becomes a bigger problem when impervious surfaces replace farmland.
• Interest rates remain an obstacle to development. Though current interest rates remain far lower than their historic highs in the early 1980s, they are markedly higher than lows in the 2010s, making loans more expensive and less attainable. “Because developers are very sensitive to that, it has somewhat stunted activity in the construction of market-rate multi-family homes,” says Kevin Edwards, P.E., President & CEO at Eberly & Associates, an Atlanta-based addition to the Pape-Dawson family.

These days, he sees more preparatory activity, such as drafting proposals and lining up government approvals, that will pave the way for the actual building when interest rates once again produce an uptick in homebuying. The combination of high interest rates and high home prices has slowed development across residential markets, and that has affected single-family homes across price points, Angela says. “Custom home builders of high-end, multimillion-dollar properties had been coming to us at a steady pace, but now we’re seeing even those slow somewhat.”

• Politics plays a role. Atlanta Mayor Andre Dickens campaigned on a promise to deliver 20,000 housing units by 2030. “Even though the mayor can’t guarantee loans and affect interest rates, he’s pushed a lot of initiatives to assist in getting those deals done,” says Kevin. “Probably half of our multi-family deals are tied to the affordable housing push by the mayor,” he adds. “One of the biggest landowners in the city is Atlanta Housing, and they have recently included land in deals with developers, which offsets cost and invites development.” Election cycles can influence a government’s openness to development, too, explains Kevin, and can even work the other way. “When a politician is up for election, they may be more sensitive to a vocal group of constituents who don’t want development, even though it might provide needed revenue for the community.”
• Multi-family opportunities shine outside the city center. Building apartments in dense urban areas can be difficult for several reasons, but an important one is parking requirements, since residents’ cars require costly multi-story parking decks, too. “Our apartments inside the city typically include a parking deck with housing either above the parking deck or wrapped around it, but that’s very expensive to build,” says Kevin.
• “Lately, we’ve noticed developers looking more closely at city or county jurisdictions outside of the metro areas, where surface parking is more viable and results in lower costs.” Although some locals take a “Not In My Backyard” stance, Kevin is seeing developers continue to seek
• opportunities outside city centers.
• The outskirts flirt with urban density. Many smaller townships outside a metropolitan area are seeking the urban mixed-use feel made popular in recent decades. Atlanta neighbor, Dallas, Georgia, for example, is developing multi-family housing in the town center, adjacent to amenities and government. “It’s going to energize the space around City Hall with cafes, a green space, an events area, and retail, with housing in and around it and a shared parking deck to serve the entire downtown,” says Angela. The appeal is obvious, she adds. “Traffic is such an issue here that it’s really nice to finish your commute at the end of the day and have entertainment or food options literally right around the corner. A lot of folks are looking for that these days.”

Developers are striving to meet housing demand with offerings that residents will find both attractive and reasonably priced. Some are offering smaller-sized homes and lots to keep prices manageable. “We’re also seeing developers take a more integrated approach,” says Eberly & Associates Development & Marketing Director Amy Granelli. “You’ll find an apartment complex right next to townhomes, rental units, and single-family dwellings in an effort to build more housing and create that community feel.”

Amid the trends, the throughline is clear: Georgians need housing they can afford—and that supports a vibrant, fulfilling life beyond work. So does the rest of the U.S., and developers are using multiple techniques to provide it.