The home construction industry in the city of Atlanta remains erratic, and other market sectors are still shaking themselves out after the recession, according to a review of figures provided in Mayor Kasim Reed’s budget proposal.
The value of homes built in the city of Atlanta fell by 48 percent in 2013 compared to 2012. However, once all construction categories are included, the budget shows revenues from building permits are increasing steadily in the city.
The value of lumber sold in the city has plummeted during the recession. And lumber isn’t the only market sector that sank – and hasen’t recovered – in Atlanta during the economic reorganization that started before and continued after the recession.
Taxable sales of lumber were valued at $1.4 million in 2013. That’s down about $50,000 from the previous year, and way off the $14.2 million in taxable sales recorded in 2008, according to the budget proposal.
As car dealerships closed their doors, the taxable sales in the automotive section fell to $8.6 million in 2013 from $14.2 million in 2008, according to the budget.
Food sales remain depressed from prior years. The taxable sales of food was listed at $43.7 million in 2013. That’s down from $49.1 million in 2008.
Alcohol is one category that was not affected by the economic downturn. As the budget states:
The value of residential construction fell to $145.2 million in calendar year 2013 from the $280 million in residential construction recorded in calendar 2012, according to the budget proposal.
The residential construction category is an economic barometer that typically garners a great deal of attention.
In addition to the construction jobs that are created, home building has a wide ripple effect. New homeowners tend to buy new furnishings, flooring, landscaping and security systems. Homeowners fueled the tremendous growth of retailers that cater to the do-it-yourself market, including Home Depot and Lowes.
In Atlanta, the number of residential construction permits the city has issued has varied rather dramatically since 2009. The variations include permitting for both new houses and new apartment buildings and townhomes. Here’s how the budget breaks down the numbers:
Houses, duplexes and pre-fabricated:
Apartment buildings, townhomes:
Atlanta intends to continue its efforts to make it easier to develop in the city by reducing the time needed to get a building permit, according to the budget.
The median time to get a permit for a house or duplex is now 30 days. That is the duration listed in 2012 and 2013, and is listed as the target in FY 2015.
Atlanta has set aggressive targets for commercial and multifamily permitting in FY 2015, according to the budget.
The goal is to provide a permit within 45 days for both categories. That would be an improvement from the median averages of:
Commercial permit:
Multifamily permit:
Despite the downturn in residential construction, overall construction activity is on an uptick in Atlanta, according to the budget.
Revenue from building permits rose to $18.4 million from $10.7 million, in the fiscal years 2013 and 2012, respectively. The projected revenue for the current 2014 fiscal year is $14 million, and the numbers look good enough for the budget to propose $18.6 million in building permit revenues for the fiscal year that begins July 1.
