Charted: Cost of new vs. existing homes in Atlanta
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The price of new-construction homes continues to outpace the price of existing ones throughout metro Atlanta, according to the latest data from Realtor.com.
Why it matters: These higher prices, coupled with higher interest rates, continue to make home buying tough for the average metro Atlanta resident.
By the numbers: The median price of a new home in Atlanta was $469,900 at the end of the fourth quarter of 2024, compared with $376,000 for an existing home.
What they're saying: Multiple factors can drive up prices for new construction, but increases in labor, materials and land development costs, which are all passed onto buyers by developers, are primarily to blame, says John Ryan, chief marketing officer for Georgia MLS, a real estate listing service.
- As a result, builders are focusing on counties outside the metro region, where land is more affordable.
- "Whether it is supply chain efficiencies, or inflationary costs, the cost of materials to build new, energy efficient homes with the latest designs has increased, which — once again — builders pass along to their buyers," he says.
Zoom in: Atlanta's numbers have trended upward since January 2020, when the median price for new construction was $341,373 and the median for existing homes was $275,000.
- The median prices for both categories rose sharply between 2021 and 2022 — when investors began flooding the real estate market — and have dropped only slightly since then.
- The median price for existing homes peaked at $400,900 at the end of the second quarter of 2024 while new construction topped out at $483,100 at the close of the second quarter in 2022.
The big picture: Nationally, the median list price of a new build was lower ($449,967) than in Atlanta during the fourth quarter of 2024, while an existing home was higher ($395,800).
- "As with everything in real estate, location is key," Realtor.com's Joel Berner tells Axios.
- For example, new builds are cheaper than existing homes in Austin, Texas, where builders have cranked out more (relatively) affordable inventory.
- But in the Midwest and Northeast, the bulk of new construction is high-end and is being created less frequently, Berner says.
What we're watching: Don't expect prices to drop much over the course of the year, Ryan tells Axios.
- Yes, there are more homes on the market, but the inventory isn't at levels that could bring down prices.
- "The combined need for more homes for sale matched with a consumer market that still has pent-up demand will continue to keep home prices elevated.