More New Home Permits Issued in Virginia-Highland, Druid Hills

The number of building permits for new single-family homes was on the rise in Virginia-Highland and Druid Hills over the past year, according to a Patch review of data kept by the city of Atlanta.

During the first three quarters of 2011, there were 14 percent more permits issued for these communities as compared to the same period in 2010, according to records at the city’s Department of Planning and Community Development.

However, the number of permits for renovations, additions and home repairs has fallen slightly.

From January through September 2011, there were 32 new single-family building permits issued in the Virginia-Highland and Druid Hills zip codes of 30306, 30307 and 30324. That's four more than issued during the same period the previous year.

Permits for single-family home renovations and additions declined  by half a percent during the same period.

According to the planning department, renovations and additions can include anything from adding an additional story onto a residence or finishing out a basement to adding a new roof or installing an outdoor deck. 

Permits for minor, non-structural repairs fell by 3 percent.

Kevin McGlynn, a Realtor with Beacham, said that sales in the area were good in 2011 compared to the previous year, and people’s decisions about building or renovating their homes tie into that.

“There’s an ongoing struggle among people who are trying to decide whether to invest $200,000 into their home or buy a nicer home,” Beacham said.

Anna Kilinski, a Realtor with Keller Williams Intown Atlanta, said that it is more affordable to build intown in recent years.

“If a buyer can’t find a home that meets their price point, they might contract with a builder to construct a house on a lot where they’ll get more for their money,” she said.

“Homes that sell are those with good layouts on a good lot, that are staged well, and that register an emotional ‘wow,’” she said. “The ones staying on the market longer are those with some weird layout; those sitting on a corner lot at a busy intersection ... We have homes in Virginia Highlands that surrounded by apartment complexes and condos, so while there’s a strong walkability appeal to our area, those developments tend to lower a home’s value.”

Kilinski expects home prices to stabilize over the next two to three years. “In Virginia-Highland and Druid Hills, we’re not as subject to foreclosures as some other areas,” she said. “Prices will stabilize over the next year, and then I think we’ll see a slow increase.”