Encouraging New Residential Housing Growth in Georgia Communities

Matt Forshee, Regional Economic Development Manager, East Region, has been following this topic closely and shares ideas from his research and discussions with communities.

Encouraging New Residential Housing Growth in Georgia Communities

The housing market in Georgia faces numerous challenges, from declining residential permits and housing starts to rising home prices and unsold inventory. These factors, coupled with elevated federal interest rates and inflationary pressures, have created a difficult environment for residential growth. However, there are several strategies community leaders can implement to encourage new housing development and meet the needs of their current and future residents.

Develop a Housing Strategy

How do you know where you’re going if you don’t have a map of how to get there? Communities should consider developing a comprehensive housing strategy document that looks at an assessment of housing needs, an inventory of existing housing stock, an inventory of growth areas that optimize existing infrastructure, goals that align to community needs, stakeholders and community partners who can implement the plan, and specific actions, timelines, and steps to achieve those goals in the community.

Evaluate and Revise Zoning Regulations

One of the first steps communities can take is to evaluate their current zoning regulations. Outdated or overly restrictive zoning and building permit regulations can significantly increase the cost of housing development. Revising these regulations to allow for a greater diversity of housing types, including smaller homes and multi-family units, can make it easier and more cost-effective for developers to build. This approach can help address the needs of different demographics, such as singles, young couples, and seniors.

Utilize Publicly Owned Land

Another effective strategy is to identify publicly owned land that is underutilized, especially in or near downtown areas. These parcels can be offered to developers at low or no cost through public-private partnerships. By reducing the land cost component of development, communities can make projects more financially viable for developers, which can lead to increased housing supply. Cottage court developments, a type of small unit/small lot or condominium development, are highly flexible in their design and can usually fit onto odd-shaped lots or sites that might not otherwise appear to be easily developable.

Provide Financial Incentives

Offering financial incentives such as grants, tax abatements, or reduced fees can also spur development. These incentives can lower the overall cost of development and make projects more attractive to private developers. For example, grants or in-kind actions could be provided to cover the costs of necessary infrastructure improvements, while tax abatements through a downtown development authority or land bank authority can offer temporary relief from property taxes to reduce initial operating costs for new developments.

Encourage Diverse Housing Types

Communities should also look beyond traditional single-family homes and large apartment complexes. Encouraging the development of “missing middle” housing like duplexes, triplexes, and fourplexes, as well as build-to-rent and cottage court developments, can provide more options for potential residents and make more efficient use of available land. These housing types can also be more affordable and offer a variety of living arrangements to meet the needs of diverse populations.

Engage in Continuous Learning and Collaboration

Community leaders should consider participating in programs such as the Georgia Academy for Economic Development’s Housing 101 and Housing 102 classes. These programs provide valuable insights into housing development and can help leaders stay informed about best practices and emerging trends. Additionally, applying for the Georgia Initiative for Community Housing (GICH) can offer communities access to multi-year training programs and conferences that focus on housing issues and solutions.

Promote Public-Private Partnerships

Creating strong public-private partnerships is crucial for successful housing development. Local governments can collaborate with developers, financial institutions, and nonprofits to create comprehensive housing plans that address the specific needs of their communities. These partnerships can also leverage additional resources and expertise, making it easier to overcome obstacles and achieve desired outcomes.

Conclusion

By taking proactive steps to evaluate and revise zoning regulations, utilizing publicly owned land, offering financial incentives, encouraging diverse housing types, engaging in continuous learning, and fostering public-private partnerships, Georgia communities can create a more favorable environment for residential growth. These strategies can help meet the housing needs of current and future residents, contributing to the overall economic health and vitality of the state and our communities.

As always, your Georgia Power Regional Economic Development (RED) Managers are available to help your community look at housing strategies, connect with industry partners, and help your community move forward. Reach out to your RED Manager and let’s discuss how we can assist you.