Metro Atlanta Market Report July 2024

Overview

Atlanta is the capital of Georgia and has the highest population in the state. It is home to one of the busiest Airport in the world, 16 Fortune 500 company headquarters, top rated Hospitals and Universities, and a diverse economy that has been growing at a rate slightly above the current US standard. In the following analysis, we will take a deeper look at the demographics and local economy to determine if Atlanta is where you should look for your next investment. What we found was interesting to say the least!

Demographic Analysis

The current population of the metro area is around 6,193,000. This is the seventh largest in the U.S and has a consistent growth of 1% year over year and is projected to continue that trend. The average age is 34 and the majority of the population is 18-39. 22% of the population is under 18, 18% is 18-29, 16% is 30-39, and 44% is 40 and older. The current median age in the US is 38. The owner to renter ratio is 55/45. Household formations have grown alongside vacancy rates since 2020 and are projected to grow at slower rate over the next few years. This data, paired with the projected economic growth shows the real estate market is moving in a positive direction. Atlanta has a plenty of choices for education. It has many public and private school options and its diverse population would even allow you to homeschool and connect with other likeminded parents to help further your children’s education no matter what your background is. The school districts vary in ratings due to access to resources and student performance.

Environment

The local air and water quality have been improving and are in the top 33% of the nation. Georgia features a number of State Parks and scenery that is easily accessible from the city for a quick day trip.  It does get hot and humid during the summer and fall with an average high of 95 degrees. However, the winter/spring months are very enjoyable and you don’t have to worry about much snow or ice! Atlanta is one of the greenest major cities in the US.

Income

The average individual income is $50,000 compared to the national average of $38,000 and the state average of $35,000. The cost of living in Atlanta is slightly higher than other cities due to higher housing costs but groceries and utilities are close to the national average. The projections show a consistent 2.6-3% growth in each of the coming years which is similar to national average.

Rental Prices

There is roughly a $300-400 a month difference in rents between B and C class properties. On average in 2024, Studio rents are $900 (C) and $1200 (B), One Bedroom $1100 (C) and $1400 (B), Two Bedroom $1400 (C) and $1800 (B), and Three Bedroom $1800 (C) and $2400 (B) The asking rent growth has leveled out from its peak in 2021 (Around 16.5%) and dropped in 2023 to a record low of -2.4% as new construction flooded the market and the economy balanced back out after the real estate surge in 2020-21. However, we are projected to see a slight growth in rental prices and a drop in vacancy rates as the new construction is in sharp decline and new units delivered has gone from a 5.7% increase in 2023, and a 7.1% increase in 2024, to a 1.7% projected increase in 2025 and in 2026!

Construction

If you’ve been to Metro Atlanta recently, you’re sure to have seen the apartments being built seemingly everywhere. We saw a record high of new units delivered in 2023 and 2024. However, most of these projects started in 2021 and 2022 when the federal rates were much lower and when rent growth was much higher. These harder market conditions along with high vacancy rates and an oversupply of new units also factor in on why construction has been in sharp decline. Construction starts were down nearly 44% in Q2, 3, and 4 of 2023. This is positive news for investors as it foreshadows a thriving economy.

Employment

There are a number of industry groups in Atlanta. 18% are in Education, 17% Professional/Business Services, 15%Technology, 12% Retail, 10% Leisure/Hospitality, 10% Financial, 8% construction, and 10% Miscellaneous. The projections show a 2.5% minimum year over year growth on employment. The labor participation rate is 68% compared to the national average of 62%. Also, females make up 48% of the workforce in Atlanta compared to the national average of 47%. Unemployment is currently at 3.5%. The national average is 3.8%. Its projected to continue to decrease over the next few years.

Property Taxation

The current tax rate in Atlanta is approximately $33 per $1,000 of assessed value. This varies between counties and cities so be mindful of that when doing research. You can find this information online through the Georgia Department of Revenue. The assessed value percentage in Georgia is 40% of fair market value.

Final Summary

In summary, the metro Atlanta area is currently a great place to buy multifamily real estate! Of course, you want to buy a property that can support itself in a worst case scenario instead of buying on speculation, but the market is trending in a very appealing way. With the income being roughly 3x the rent in most areas, we are projecting that Atlanta market will start to flourish over the next few years!

Additional notes from Author

If you've made it this far, I would like to thank you for your time and I hope you were able to take away something from this article. If you have any questions or feedback it is greatly appreciated! Also, if you have an area that you would like to know more about, contact me and we can take a look together!

Works Cited: CoStar.com, City-Data.com, Census.gov, Atlantapublicschools.us, bls.gov, cbre.com, atlantaga.gov, atlantahousing.org, atlantawatershed.org, dor.georgia.gov