It seems there’s almost no industry that the COVID-19 pandemic didn’t touch. Some skyrocketed while a good majority took a hit, and that includes construction. Lockdown measures impacted development activity, even though many states classified construction as essential or allowed it to continue with certain restrictions.
While multifamily developments were affected by declining rent prices and dwindling construction trends, development still fared better in some parts of the country. Urban Atlanta was one of those bright spots, along with Orlando, Tampa, West Houston, and Miami.
However, all of those markets saw a significant drop from the same period last year — except for Urban Atlanta. West Houston fared the worst, with new inventory dropping by more than 3,000 units compared to 2019.
Despite the pandemic, Urban Atlanta had more than 15,000 units in 57 projects under construction in June. More than half were slated for completion by the end of the year. The metro’s rapidly rising population maintains its robust demand for housing.
Between January and May, 2,739 units in ten properties broke ground in Urban Atlanta. Last year, only 1,880 units in seven communities began development. The largest project to break ground in 2020 is a mixed-use development that will include retail space,market-rate units, affordable and senior housing as well as several townhomes. The $166 million project located at 485 John St, will be built in five phases and is scheduled to be completed in 2027.
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About The Author
Kevin Caiaccio, founder of Caiaccio Law Firm, has more than 25 years of experience practicing commercial real estate law. His cut-through-the-noise mentality encourages clients and colleagues to be selective and focus on big-picture solutions. He believes in fighting for what’s important and filtering through obstacles that distract. Kevin is recognized among his peers and network as a commercial real estate law industry leader and expert.