The Housing Crisis And Peachtree City

I feel like I’m one of the lucky ones. Granted, there were a ton of things within my control that allowed me to move to Peachtree City and own a home. I worked hard to secure a good salary, avoided fun purchases to save for a downpayment, and negotiated a favorable deal with the seller.

However, one of the biggest factors allowing me to move to Peachtree City was timing. When I was ready to buy a home for my growing family in 2012, housing was both available and affordable. 

Unfortunately, that’s not the case for many people today. 

America’s Housing Crisis

The housing market has undergone a dramatic shift, making homeownership increasingly out of reach for millions. What was once attainable through hard work and planning is now a distant dream for many, primarily due to a severe lack of housing and skyrocketing prices. At the heart of the crisis is a fundamental issue: demand far exceeds supply. The National Association of Realtors reported a 6.5 million home shortage in 2023—an issue that has been building for decades. Much of this shortage traces back to the 2008 financial crisis when the housing market’s collapse forced builders to scale back operations. Despite a recovery, construction has remained well below historical averages.

Zoning laws and regulatory barriers have only exacerbated the problem. In many areas, single-family zoning is the dominant force, limiting the development of higher-density housing options like apartments or duplexes. Additionally, rising construction costs have further complicated matters. While lumber prices, which spiked during the pandemic, have recently stabilized, materials like steel and concrete remain expensive. According to a 2022 report from the National Association of Home Builders (NAHB), nearly 24% of the total cost of building a new home comes from complying with various regulations. Developers pass these added costs onto buyers, making it harder for families to afford homes.

This issue is compounded by wage stagnation and income inequality. The National Low Income Housing Coalition’s 2023 report found that a worker earning the federal minimum wage would need to work 96 hours per week to afford a modest two-bedroom rental. Meanwhile, wealthier households can outbid lower-income families, further restricting affordable housing options.

Institutional investors have also played a role in this crisis. By purchasing large numbers of single-family homes, they reduce supply and drive up prices. Many of these investors convert homes into rental properties and charge above-market rents. Short-term rental platforms like Airbnb have further commercialized housing, limiting long-term rental options for residents who need stable housing.

Finally, demographic shifts continue to strain the housing market. Millennials, the largest generation in the workforce, are reaching home-buying age. Older adults are “aging in place,” holding onto homes that might otherwise go to younger families and further compounding the demand for housing.

What Could Peachtree City Do To Help Solve The Crisis?

Addressing the housing crisis requires large-scale changes at the national level along with shifts in societal behavior. However, Peachtree City has opportunities to make an impact at the local level through several proactive measures.

One of the most direct solutions would be to revisit zoning regulations. Currently, zoning has heavily favored single-family homes with 83% of the city’s housing stock made up of these residences and just 11% of apartments, 3% of condominiums, and 3% of townhomes. This imbalance limits the availability of diverse housing options and makes it more difficult for potential residents to find affordable homes. Peachtree City could modify the density in already-zoned residential areas near existing commercial centers. The city’s 2022 Comprehensive Plan already supports this through the concept of “step-down density,” where housing density is highest near Village Centers and decreases as you move outward. This would concentrate growth in areas already well-served by infrastructure, helping the city grow without compromising its suburban character.

Mixed-use development is another solution. Peachtree City’s Village Centers present a prime opportunity to incorporate residential units into existing commercial zones. By doing so, the city could maintain its Village Concept while introducing much-needed housing in areas already equipped with infrastructure. The 2022 Comprehensive Plan provides a strong framework for this approach, recommending retail and office spaces on the ground floor and residential units on upper levels. Mixed-use developments like these have revitalized commercial areas in other communities, providing affordable housing options while boosting the local economy.

While new developments are essential, Peachtree City can also address housing demand by revitalizing existing properties. Many homes, townhomes, and condominiums in the city are aging (the average single-family home is 33 years old). Owners could renovate these properties to modern standards to help alleviate some of the housing challenges without the need for rezoning or large-scale new developments. This approach preserves the character of the community while improving the overall livability of its housing stock.

Peachtree City can also support nonprofit housing initiatives. For example, Southern Crescent Habitat for Humanity, which spoke at the November 21st city council meeting, builds and repairs homes for families meeting specific income criteria. Partnering with nonprofits like this can help address housing shortages while fostering community stability. 

Regional collaboration is another important step. By working with neighboring communities such as Fayetteville, Tyrone, and Senoia, Peachtree City can ensure its growth aligns with the broader region’s needs. A regional housing task force, composed of local officials, business leaders, and developers, could collaborate to develop a shared vision for sustainable growth.

Finally, Peachtree City can continue leveraging state and federal programs. The Georgia Department of Community Affairs (DCA) Housing Tax Credit Program incentivizes affordable housing development for households earning between 20% and 80% of the Area Median Income. Projects like HearthSide Peachtree City, a senior-living community for adults aged 62 and older, have been supported by this program. By continuing to leverage these resources, Peachtree City can expand affordable housing options to meet growing population needs.

Does Peachtree City Want To Take Action?

While the proposed solutions to the housing crisis at the local level have the potential to address our growing needs, it’s essential to consider whether Peachtree City is ready—or willing—to embrace these changes. Previous housing proposals have faced stiff resistance for a variety of perceived reasons.

Peachtree City has long prided itself on being a retreat from the hustle and bustle of Atlanta and its congestion, noise, and crime. Many residents view the prospect of becoming more like an urbanized area as a threat to the very essence of what makes our town unique. The fear of losing the suburban charm and slower pace of life that defines Peachtree City is a powerful motivator against any changes that might compromise these qualities.

Another concern voiced by residents revolves around the potential impact on property values. Peachtree City has enjoyed a stable housing market with steadily appreciating home values. Many residents fear that introducing higher-density housing, particularly affordable housing projects, could harm the value of their properties. The concern stems from the belief that multi-family housing in single-family zones reduces the desirability of neighboring areas and leads to a decline in home prices.

Traffic and congestion are also significant worries. Many are concerned that more residents would overwhelm the city’s roads, leading to traffic jams and longer commute times. With Peachtree City’s network of roads and multi-use paths already facing capacity issues in certain areas, adding more housing without addressing the transportation infrastructure could create significant challenges.

Straining resources is another consideration. Peachtree City’s existing infrastructure has served the community well overall. However, introducing more housing, particularly higher-density developments, could place additional pressure on these resources. With an increased population, the demand for public services, utilities, and recreational spaces would rise, requiring significant upgrades to meet these needs. Without careful planning and investment, these added pressures could negatively affect the quality of life for current and future residents.

What Does Inaction Look LIke?

Given the negative possibilities, the resistance to changes in Peachtree City’s approach to housing is understandable. I share many of these concerns, particularly around rezoning. However, we must also consider the broader implications of doing nothing. 

Failing to adapt to housing demand could erode Peachtree City’s ability to attract and retain a diverse population, including younger families and workers. As housing costs rise, middle-class families may be pushed out, leaving behind only wealthier households. This demographic shift could create an imbalance that affects our social fabric and community engagement.

Inaction could also exacerbate the regional housing crisis. As neighboring cities and counties adjust to population growth and rising housing demand, Peachtree City risks being left behind. Without embracing new housing strategies, the city may miss out on critical state and federal funding opportunities and increase pressure on local infrastructure as more people commute into the city for work, contributing to congestion and further straining services.

Finally, inaction could jeopardize Peachtree City’s economic future. The city is home to many employers, and its ability to attract and retain talent depends on offering adequate housing options. Without sufficient housing supply, businesses may struggle to recruit and retain workers, potentially slowing economic growth and limiting opportunities for residents.

So What Do We Do?

The problems we’ve discussed are real and require thoughtful consideration. However, how we address these issues ultimately rests with you, the residents. Will we maintain the status quo, potentially leaving ourselves unprepared for the challenges ahead? Or will we take proactive steps to embrace growth while addressing the issues that could impact our community’s preservation?

The choice is yours.

What’s Next For This Column

This is my last article for 2024. I’ll be back in January with a preview of next November’s municipal elections here in Peachtree City. In the meantime, if there’s a topic you’d like me to explore in the future, please feel free to share your suggestions through the contact form on this website.

Have a great holiday season!