The housing and real estate industries were the bright star of 2020, despite the coronavirus pandemic that shut down businesses and schools and forced people to stay at home.
That is the view of real estate executive Frank Norton Jr. in his annual economic forecast called Norton Native Intelligence.
"Home sales in Georgia ended 2020 with the best year in decades," he said. "As we adapted to shelter-in-place some, like Goldilocks, found the space was just right, others too small or too large."
In his 33rd annual Native Intelligence forecast, Norton said more million-dollar homes were sold on Lake Lanier in 2020 than in any other year. He also said less expensive home were selling equally fast.
But he warned of a continued affordable housing crisis, and he urged President Joe Biden to address the crisis head on.
"Housing has become the great divide by economic strata and the divide has grown by leaps during this COVID-19 period," Norton said.
He recommended the federal government keep interest rates low, remove tariffs on all goods and components using in building homes, strip away regulation that hinder real estate development as way to stimulate an increase the availability of cheaper homes.
"Low interest rates are immaterial if there is not an adequate stock of affordable homes in which a buyer can use that same low interest rate," he said.
Norton also suggested that the government should allow self-directed IRA funds to be used for a down payment or renovations on a home. He said a home IRA would stimulate both new purchases and major home renovations while diversifying retirement portfolios and allowing money that would otherwise be saved for a down payment to go back into the economy.
During his presentation, Norton also listed this Top 10 Game Changers for 2020, and the pandemic was at the top of his list. He defines game changers as those events or trends that significant enough to transform the economy and landscape of the region in both the short and long term.
He said COVID-19 changed everything, from workplaces to our home lives, from health care to education and worship. One of the biggest changes is the boom in working from home. Norton said while some companies will return to their offices, many will consider a hybrid model where employees work from home one or two days a week.
Companies like Amazon and Walmart that offer home delivery of products and groceries saw significant increases in their businesses in 2020, and the switch to more home delivery will not retreat, Norton said.
"Without a doubt, COVID is North Georgia’s number one game changer. The lessons learned will be with us for generations, but North Georgia’s resilience and powerful people have shined. A true testament to our regional people’s positions and positivity," he said.
Another game changer is the industrial expansion that continues across North Georgia. More leasing activity took place in the first quarter of 2020 – before the height of the pandemic – that in any other in the region's history. Hiring was strong in the second, third and fourth quarters, he said.
"This industrial expansion is further blueprinting our region as a logistics transportation lynch pin for Southeastern E-commerce and distribution," Norton said.
Norton also cited Georgia's apparent victory in the water wars with Alabama and Florida as a game changer. In early 2020, an expert judge appointed by the Supreme Court denied Florida's request, saying Georgia's use of water in the Chattahoochee-Flint-Apalachicola river basis was reasonable.
Norton repeated his contention that raising the full-pool level of Lake Lanier by two feet would provide the metro Atlanta area with all the water it needs, even in the most severe drought.
"The war is not over but the signs point to a positive Georgia outcome," he said.
You can watch the full presentation and download a copy of Native Intelligence 2021 by clicking here and registering on The Norton Agency website.
