The Real Estate Bubble for Black America is Bursting

Atlanta was once known as one of the most affordable metropolitan hubs in the country.  But what a difference a year makes.  Many of us are shocked to find out, that Metro Atlanta home prices are nearly 25% higher than a year ago, a product of demand going through the roof— much of it is … Continued The post The Real Estate Bubble for Black America is Bursting appeared first on Atlanta Daily World.

The Real Estate Bubble for Black America is Bursting

Atlanta was once known as one of the most affordable metropolitan hubs in the country.  But what a difference a year makes.  Many of us are shocked to find out, that Metro Atlanta home prices are nearly 25% higher than a year ago, a product of demand going through the roof— much of it is driven by the outside force of cash-rich investors.  

Last month, the average cost of a home in the metro area is almost  $370,000. A year ago, it was $290,000.  Metro Detroit is also experiencing much of the same,  just like many markets around the country.  But what are African American families with typically less income and less capital to do in such a difficult and competitive housing market?   We are joined now by real estate attorney and licensed realtor Aisha Thomas from the Thomas Agency to help us sort it all out.  For more information from Ms. Thomas you can log on to her website. https://the-thomasagency.com/

For comparison, here are the most expensive cities in the US. (according to Rocket Mortgage) 

San Francisco, California.  $1,100 per square foot. …

Manhattan, New York.  $1,400 per square foot. …

San Jose, California. $610 per square foot…

Bethesda, Maryland.  $500 per square foot. …

Brooklyn, New York. $720 per square foot…

Los Angeles, California.  $550 per square foot. …

Boston, Massachusetts.  $760 per square foot. …

Compared to these cities Atlanta is still relatively affordable and costs considerably less per square foot.  What is the average price per square foot to build a house in Georgia?  Basic home construction costs will vary,  but the most common starting point for projects is $136 per square foot. For more customized homes, the pricing can go up to $169 per square foot to accommodate the cost of other finishes and materials.  And the price per square foot on existing homes will be right around $260 per square foot.  But remember salaries are typically much lower in the southern portion of the US.  

Metro Detroit is going to be a much better bargain when it comes to bang for your buck.  According to Fortune Magazine, they looked at how far $400,000 would go in several major cities around the country and Detroit came in at the top spot.  For a little more than $436,000, you could purchase a 5800-square-foot home.  That’s a median price of only $68.00 per square foot.  The most affordable neighborhood in Detroit to buy a home is Outer Drive – Hayes where the median listing price is $45,000.

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