Contractors are building homes again, according to the U.S. Commerce Department. There was a 45 percent increase in building permits for single family homes for August of this year over permits issued in August of 2011.
The metro Atlanta area is also seeing an increasing number of building permits for single family homes. In August 2012, 958 permits were issued as compared to just 598 building permits in August of 2011. However, one homebuilder says he isn't seeing that growth in his business yet.
Dennis McConnell has been custom building homes for more than five decades in metro Atlanta. He says the home-building business has seen better days.
"In 2006, 2007 we were building in the 30 to 40 home range. Total market was about 66,000 building permits for single family homes," said McConnell.
McConnell used to have a staff of 13, but now it's just him, working out of his basement with sub-contractors as staff.
"That's the only source that you can have. I can't afford to keep a staff," said McConnell.
He recently built his first home in five years. Financing it didn't come easy.
"At this point, it's friends and family. It's from hard money lenders. The banks just aren't ready to lend money yet," said McConnell.
McConnell says he will make 8 percent off the sale of the nearly $500,000 home, but at one point the profit would have been 20 percent.
McConnell is happy to hear about the increased building permits nationwide. But says homebuilders here in metro Atlanta aren't seeing those numbers.
The U.S. Department of Commerce reports that in September, there was an 11 percent increase in building permits nationally than in August. But McConnell says that wouldn't' make much of a dent in metro Atlanta.
"It's absolutely encouraging. But you've gotta put it in scale. Last year we did 577 building permits. So if we did 11 percent more that's 60 houses across 22 counties – not a lot," he said.
MetroStudy.com, a housing research company that analyzes markets across the country, said that demand now outpaces new home supply in many parts of Atlanta. They expect permits and construction starts to continue to rise for the next few years.
Sunday, May 19 2013 1:54 PM EDT2013-05-19 17:54:13 GMT
President Barack Obama addressed a crowd of soggy graduates and guests at Morehouse College's spring commencement ceremony on Sunday.
President Barack Obama addressed a crowd of soggy graduates and guests at Morehouse College's spring commencement ceremony on Sunday, telling graduates to take the power of their example-- as black men graduating from college-- and use it to improve people's lives.
Sunday, May 19 2013 1:53 PM EDT2013-05-19 17:53:40 GMT
President Barack Obama addressed graduates at Morehouse College's commencement ceremony in Atlanta on Sunday.
President Barack Obama addressed graduates at Morehouse College's commencement ceremony in Atlanta on Sunday, marking the first time a sitting president has made a commencement address in Georgia since 1938. See photos from his visit to Atlanta here!
Saturday, May 18 2013 10:09 PM EDT2013-05-19 02:09:05 GMT
They say you can't win if you don't play, and thousands of people are. The jackpot for Saturday night's Powerball drawing is an estimated $600 million, giving many a bad case of lottery fever.
They say you can't win if you don't play, and thousands of people are. The jackpot for Saturday night's Powerball drawing is an estimated $600 million, giving many a bad case of lottery fever.
