O’Dwyer Homes: Making Your Home Purchase Attainable

Atlanta Real Estate Forum Radio

The dream of owning a home is increasingly slipping out of reach for many, so what exactly makes housing “attainable” in today’s market? Jordon Tench, director of land acquisition and development at O’Dwyer Homes, joins Host Carol Morgan on the Atlanta Real Estate Forum Radio podcast to discuss methods for introducing affordable options to the Atlanta housing market.

What is attainable housing?

Tench describes attainable housing as “housing that a large portion of people can afford and not spend more than 30% of their income on the payments.” For some homebuyers, that amount is significantly higher than what others can afford, so it’s key for builders to consider the broader buyer population. O’Dwyer Homes engages in discussions with local jurisdictions to find pockets where higher-density communities can be developed.

Tench said, “I think that a good metric I’ve heard is that every $1,000 you go up on a house, 100,000 more people cannot qualify for it.”

O’Dwyer Homes currently has two townhome communities in progress, one in the City of Atlanta and the other in Mableton, that sit within the affordable price range. With no square footage requirements, Tench explains that the intown community will offer a mix of floor plans that span 1,400 to 2,000 square feet. Similarly, 20% of the homes at the Mableton community will be under 1,800 square feet.

How does strict jurisdiction affect home builders and buyers?

The Georgia Public Policy Foundation recently identified that almost 30% of the final house price is due to extra regulations, which amounts to nearly $100,000 for a new construction home. While energy efficiency has improved significantly, saving homebuyers thousands of dollars upfront, other “impact fees” cause them to spend money on unnecessary elements, such as exterior brickwork.

“That [exterior brick] adds probably $15,000 to $20,000 per house and doesn’t look good,” said Tench. “It doesn’t allow for variety and those homeowners were kind of stuck with that $20,000 or $30,000 item, where they would have rather spent that money somewhere else.”

Tench points out that increasing density has the potential to lower home prices. If a house is built for $200 per square foot, then a 1,000-square-foot home would be $200,000.

“When you look at the land, the land itself continues to be more expensive and development costs have almost doubled over the last five years,” said Tench. “So, where you could develop a lot at $50,000, now you’re at $100,000 as a starting point. A lot of that comes down to inability to get density.”

Another factor that impacts attainable housing is the lengthy timeline from a builder’s letter of intent to actively selling out of a community. As interest rates fluctuate and buyers hesitate, it’s difficult for builders to navigate the ups and downs.

In his role on the Greater Atlanta Home Builders Association’s (GAHBA) Government Affairs Committee, Tench gets a front-row seat on how these regulations affect the housing market. He uses his day-to-day experience in land acquisition for O’Dwyer to paint a clearer picture for local legislators and advocate for homebuyers. The committee is confronting impact fees and permitting timelines head-on to support the goals of builders and homebuyers in metro Atlanta.

Tune in to the full episode to discover more about how smaller homes soothe the affordable housing crisis in Atlanta. For more information about O’Dwyer Homes, visit www.ODwyerHomes.com.

About O’Dwyer Homes

Since 1992, O’Dwyer Homes has delivered quality and value to more than 2,000 happy homeowners in its new semi-custom homes and townhomes. The builder is local and family-owned, focusing on quality construction, energy efficiency and customer satisfaction to help keep its Energy Certified new homes affordable and valuable for years to come.

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About Atlanta Real Estate Forum Radio

Atlanta Real Estate Forum Radio, presented by Denim Marketing, highlights the movers and shakers in the Atlanta real estate industry – the home builders, developers, Realtors and suppliers working to provide the American dream for Atlantans. For more information on how you can be featured as a guest, contact Denim Marketing at 770-383-3360 or fill out the Atlanta Real Estate Forum contact form. Subscribe to the Atlanta Real Estate Forum Radio podcast on iTunes, and if you like this week’s show, be sure to rate it.