Suwanee Economic Numbers: Up and Down

Suwanee's economic picture remains brighter than that of many municipalities these days, but it is not immune to ills -- namely residential and commercial real estate -- that are common elsewhere.

The city's unemployment rate stood at 3.7 percent at the end of 1Q 2011, said Matt Dickison of the city's planning and inspections office. This is far lower than that of Gwinnett County (8.9 percent) and metro Atlanta (9.8 percent). Suwanee has about 15,300 residents, per the 2010 U.S. Census.

However, the housing downturn is a major issue locally, a city economic report showed. Suwanee is experiencing a slowdown in the housing sector for the third consecutive year. In 2010, the city issued 43 permits for single family attached/detached housing units; the annual average was 207 from 2000-08.

Foreclosure filings in Suwanee accounted for about 1 percent of the 7,042 in Gwinnett County in Q1 2011, a slight drop from the previous quarter for Suwanee. But the locations of foreclosed housing units have become more widespread, the report noted.

Leading the foreclosures was the Terraces at Suwanee Gateway development at I-85/Lawrenceville-Suwanee Road (12). Other neighborhoods most affected by foreclosures: Suwanee Station (eight), Chattahoochee Run, Landsdowne and Shadowbrook (five each).

Housing values? The average home price in Suwanee (30024 ZIP Code) was $210,000, down from $245,000 in 2008, according to an index in the city's report. 

The city's retail vacancy rate is far higher (19 percent) than the metro Atlanta average of 10.2 percent. This figure includes stand-alone retail (such as a gas station) as well as multi-tenant retail (such as a shopping center). Office market vacancy, too, is lagging: 37 percent in Suwanee, compared to 20 percent for metro Atlanta, per CoStar figures. Industrial market: Suwanee is at 9 percent, lower than Atlanta's 13.6 percent.

And there are more subtle problems with the residential housing downturn. Of seven active developments in Suwanee that include single family residential developments, 30 percent of the units are unoccupied. This includes undeveloped lots, homes under construction and builder-owned homes.

The city's report notes that "lack of activity in partially completed neighborhoods" could result in costs for the city associated with road maintenance and increased calls for police service; incomplete subdivisions have fewer "eyes on the street" than completed neighborhoods.