New Home Permits Up, Renovations Down In East Atlanta Neighborhoods

Building permits for new single-family homes have risen 11 percent in East Atlanta over the last year, according to a Patch review of building permits issued by the city of Atlanta Department of Planning and Community Development.

At the same time, the number of permits for renovations, additions and repairs have fallen. 

From January through September of 2011, there were 71 new single-family building permits issued in the East Atlanta zip codes of 30306, 30307, 30308, 30312, 30315, 30316 and 30317. That's 11 more than during the same period last year, when 63 permits were issued.

Permits for single-family home renovations and additions fell 12 percent, from 317 in the first three quarters of 2010 to 283 during the same period this year. Renovations and alterations can include a variety of projects such as adding an additional story onto a residence or finishing out a basement to adding a new roof or installing an outdoor deck, according to the department.

Melissa Wakamo, a Realtor and principal broker for The RedRobin Group, an Atlanta-based real estate services firm, said East Atlanta remains a strong market for home renovations.

“A home renovation company can totally refurbish a house for $50,000, whereas a few years ago, you had to pay $150,000 just for a single-family home lot,” said Wakamo, who works in East Atlanta’s 30312 and 30316 zip codes. “Renovations in this market can almost result in a totally new home.”

“Most people I encounter feel it is cheaper to buy a home rather than building onto their existing one,” said Marc Takacs, an independent Realtor with Keller Williams, who has been working in east Atlanta since 2002. “East Atlanta has one of the most diverse housing stocks I’ve seen in Atlanta. In East Atlanta Village, there are very few homes less than 10 years old. The vast majority were built in the 50s, and there’s a nice mix of large, post-World War II homes.”

“The bottom has dropped out on prices for homes in larger, new subdivisions,” said Wakamo. “Builders are constructing a single-family home, then they sell it, and then they start building another, and will sell it before starting another construction.

Wakamo attended a recent brokers’ meeting in which the consensus for East Atlanta’s market in 2012 is more of the same from 2011.

“Most of our neighborhoods are not likely to get any worse,” she said. “We think the market will remain pretty flat but maybe improve a little bit.”

Repair permits have declined. From January-September 2010, 404 permits were issued, compared to 348 this year. That’s a decline of 16 percent. Repairs include non-structural items such as floor coverings, new bath fixtures, gutters and doors.

PERMITS BY ZIP CODE

New Single-Family Home Permits