The housing market in 2026 is defined by contradictions. Demand remains strong, yet affordability challenges persist. Builders continue to innovate, even as uncertainty clouds the economic outlook. Meanwhile, demographic shifts and changing consumer preferences are reshaping what Georgians want from their homes.  

In part two of Atlanta Real Estate Forum Radio‘s mid-year market update, Jim Jacobi of Parkland Communities, Tim Arnold of D.R. Horton and Cara Lavender of John Burns Research and Consulting (JBREC) join Host Carol Morgan to discuss the forces driving today’s market. From the evolution of build-to-rent communities to construction costs and changing buyer expectations, the panel explored how industry leaders are adapting to a rapidly evolving landscape. 

Demographic Shifts Will Shape the Next Decade 

While much attention is focused on mortgage rates and affordability, longer-term demographic changes deserve equal consideration. An aging population, later marriages, declining birth rates and multigenerational living are altering housing demand. These shifts could influence everything from home design and community amenities to product mix and location strategies over the next decade. 

“I think it’s kind of those changing demographics that are going to change what products we need, what type of housing we need, where we need it,” Lavender said. 

Buyers Want More Choice & Better Value 

Buyer priorities have evolved significantly since the post-pandemic housing boom. During the height of the market, consumers were eager to purchase almost any available home. Today, buyers are more selective and focused on maximizing value. 

“They want to see more options, they want to have more choices,” Arnold said. 

Rather than concentrating solely on purchase price, buyers increasingly evaluate value through the lens of square footage, functionality and available floor plans. Builders are responding by offering a wider variety of products within communities and across submarkets. 

Affordability Means More Than Home Price 

“Affordability is not just the house price,” Jacobi said. “Affordability is everything across the board.” 

Emerging mortgage products designed to reduce barriers to homeownership are also helping expand access, including programs featuring zero down payments, no private mortgage insurance and reduced closing costs. 

As lenders introduce more creative financing solutions, these tools could help more buyers achieve homeownership despite elevated rates. 

Build-to-Rent Communities Continue to Evolve 

Build-to-rent communities are entering a new phase of maturity, with developers moving away from one-size-fits-all approaches. Mixed-product developments featuring townhomes, single-family homes and ranch-style offerings designed for aging renters are becoming increasingly common. 

Research from JBREC points to the same trend. 

“When we look at that delivery pipeline, it’s pretty clear that townhomes and those mixed-product communities are going to be what dominates BTR deliveries in 2027,” Lavender said. 

At the same time, renters are prioritizing practical value over luxury amenities. While amenities such as pools and fitness centers remain desirable, residents place greater emphasis on low-maintenance living, responsive management teams and services such as lawn care. 

Construction Costs Remain a Daily Challenge 

Although slowing housing starts have eased some labor pressures, construction costs continue to fluctuate. 

“We work on it every day,” Arnold said. “It just continues to be a shift.” 

Lumber pricing, tariffs and petroleum-based products all contribute to ongoing volatility. However, reduced apartment construction has expanded the available labor pool for residential projects. That increased competition among trades may help stabilize pricing moving forward. 

Data Centers Create New Competition 

Another emerging factor is the rapid growth of data center development. Large-scale investments from companies such as Amazon, Google, Meta and Microsoft could eventually impact residential construction by competing for labor and land. 

According to broker surveys conducted by JBREC, approximately one-third of respondents reported seeing residential land transactions redirected toward data center projects. While not yet widespread, it is a trend the industry is watching closely. 

The New Reality: Lower Velocity & Greater Uncertainty 

Builders and developers have adjusted expectations in response to a more cautious environment. Sales pace, lease-up rates and incentives are increasingly built into underwriting models. Rather than anticipating rapid improvement, many operators are planning for a prolonged period of moderation extending into 2027. 

The Grind Before the Next Growth Cycle 

The defining characteristic of today’s housing market may ultimately be its complexity. Elevated interest rates, rising costs, shifting regulations and global economic uncertainty have forced builders, developers and researchers to rethink long-held assumptions and adapt in real time. 

Rather than waiting for a return to the conditions of the past, industry leaders are learning to operate in an environment where flexibility, discipline and execution matter more than ever. Growth may come more slowly, and success may require a greater willingness to adjust strategies as conditions evolve. 

Yet beneath the headlines about affordability challenges and market headwinds, the industry’s core mission remains unchanged. Housing is about more than economics and forecasts. It is about creating places where people build their lives, raise families and invest in their futures. Even amid uncertainty, the enduring value of homeownership continues to provide both purpose and optimism for those shaping the next chapter of the housing market. 

Ready to hit rewind on Part 1? Listen to the full episode here. 

About Parkland Communities 

Parkland Communities, Inc., the parent company of build-to-rent home builder, Parkland Residential, is a privately owned, multifaceted real estate development and investment firm specializing in residential properties. With over 20 years of experience in the industry, Parkland Communities Inc. uses the latest market data, technology and established relationships to strategically secure new development opportunities in Atlanta’s most desirable locations. The company’s hands-on philosophy has made it a proven leader in the industry with a trusted reputation among elected officials, municipal staff, neighborhood associations, bankers and home builders. For more information on Parkland Communities, visit www.ParklandCo.com. 

About D.R. Horton 

As one of metro Atlanta’s leading home builders, D.R. Horton offers new homes across a variety of price points, product types and locations throughout the region. The company builds communities designed to meet the needs of first-time homebuyers, move-up purchasers and those seeking low-maintenance living, with a focus on quality construction, thoughtful design and attainable homeownership opportunities. Backed by the resources of America’s largest home builder, D.R. Horton continues to play a significant role in expanding housing options across Georgia’s growing markets. Learn more about D.R. Horton at https://www.DRHorton.com/. 

About John Burns Research and Consulting 

John Burns Research and Consulting provides data-driven insights across every housing sector, including new home construction, resale, single-family rental and build-to-rent. It helps companies make informed decisions and mitigate risk in order to identify opportunities in a complex market. From M&A projects to consumer surveys, the firm covers every aspect of the housing industry. Learn more about John Burns Research and Consulting at https://JBREC.com/.   

Podcast Thanks      

Thank you to Denim Marketing for sponsoring Atlanta Real Estate Forum Radio. Known as a trendsetter, Denim Marketing has been blogging since 2006 and podcasting since 2011. Contact them when you need quality, original content for social media, public relations, blogging, email marketing and promotions. A comfortable fit for companies of all shapes and sizes, Denim Marketing understands marketing strategies are not one-size-fits-all. The agency works with your company to create a perfectly tailored marketing strategy that will suit your needs and niche. Try Denim Marketing on for size by calling 770-383-3360 or by visiting www.DenimMarketing.com.       

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. Atlanta Real Estate Forum Radio was recently honored on FeedSpot’s Top 100 Atlanta Podcasts, ranking 16th overall and number one out of all ranked real estate podcasts. 

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