Housing is in high demand in the CSRA.
Some 587 homes are for sale between Columbia, Richmond, and Aiken counties as of March 1, according to the Greater Augusta Association of Realtors MLS. Roughly half of those are new construction residences. This represents a 10-year low for the same day measured each year for available inventory over the three-county area.
Many factors have contributed to the demand for homes.
The CSRA has experienced job growth in both the manufacturing and logistics sectors as well as Cyber. Many view the CSRA as a safe place to live given the lack of civil unrest the area during 2020. Some protests occurred in the CSRA, but for the most part, they were peaceful unlike those in many other parts of the country. Job growth, virtual work flexibility and safety when compared to major metro areas has created additional growth and housing demand.
Atul Sinha, Realtor with Southeastern Residential, stated that “Sellers are scared to put their house on the market because they fear they will not be able to find anywhere to go. It is a vicious cycle.”
Sinha went on to say that many residents are relocating to the area from out of state either due to their jobs being relocated here or their ability to work remotely. Evans being voted the number one city to live in has also increased the demand, he believes.
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Financing availability has also contributed to the housing shortage. Interest rates have remained low, which has resulted in many homeowners refinancing and staying where they are, according to Andy Passmore, a loan officer with Security Federal Bank.
Passmore also attributes the shortage of housing to uncertainty related to COVID-19 and the construction costs increase being seen market-wide.
“With the rising price of lumber and the shortage of other building supplies, some of your homeowners looking to build have put it on hold or have completely dropped the idea.”
Larry Miller, broker of Century 21 Larry Miller Realty, believes the same, that the increase in construction costs and shortage of materials is slowing new construction and causing resales to be more attractive.
Miller went on to say, “We have so many state and federal paychecks in the CSRA, coupled with so many steady medical workers. Then add the thousands of Cyber and NSA folks that are adding to the numbers at Ft. Gordon AND Plant Vogtle construction, we are simply running out of available homes — can’t build them fast enough.”
In the last few months, the cost of lumber for new construction has nearly doubled. This, coupled with supply chain issues, has resulted in new-home construction suffering. The reduced new construction inventory combined with an increase for housing from relocation is driving the need for housing.
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As housing demands increase locally, the price of homes also increases. Many sellers are concerned about being able to buy a new house if they do sell, given the increased costs. This is leading many people to stay in their current home and refinance at the artificially low interest rates.
Until new construction inventory increases, demand for homes will continue to grow. Construction materials costs are not expected to return to normal anytime in the foreseeable future. The demand for housing in the CSRA is expected also to increase due to demand from people relocating to the area.
The combination of all these factors has resulted in a housing shortage, increased prices for existing homes and a robust rental market.
Joe Edge is the Real Estate Columnist and Publisher for The Augusta Press. Reach him at joe.edge@theaugustapress.com
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