For years, the constant relocation of job-seekers, families and retirees to the Atlanta area drove a quickly expanding housing market. But as the Atlanta Journal-Constitution
reports, that moving has now slowed, which has led to drastically dropping home prices.
Data from the Atlanta Regional Commission has shown that approximately 120,000 people moved to the area every year for the last 20 years, fueling a massive rise in construction spending on new homes. But as that moving pattern has slowed to roughly 31,000 over the last two years, demand for those homes has plummeted.
"It takes some adversity to uncover your weaknesses," Mark Vitner, a senior economist with Wells Fargo, told the paper. "In Georgia, we have a culture of growth that has been dependent on the influx of people into the state."
The paper says that over the last year, roughly 70,000 homes have sold in the region, but very few of them have been new, more expensive homes - meaning that prices have dropped, making them extremely affordable.
A recent report from Clear Capital
highlighted the home price drops. According to the report, September home prices in Atlanta were more than 13 percent below their levels from the year before.