Why Invest in Atlanta's Housing Market?

Atlanta: Constrained Inventory, Rental Growth, and Strong Employment

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The Atlanta market is experiencing constrained inventory, rental growth, and strong employment. Reflecting these trends, over the past four years, home prices in Atlanta have appreciated more than 58%, while the US average was 43%.

LIMITED INVENTORY: Part of Atlanta's housing market strength lies in its extremely limited home inventory. Home listings have declined from 2016 to near-record lows in the first two quarters of 2023 - with increasingly limited housing stock for new homeowners to purchase.

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LIMITED NEW CONSTRUCTION: In addition to limited active inventory, building permits currently remain well-below permit issuance before the Global Financial Crisis, with many missing housing units based on historical construction trends. Atlanta relies on this limited construction to help meet new home demand, especially following the pandemic. Many homeowners are locked into mortgages at sub 4% and are hesitant to sell their property due to high current rates.

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HOME LISTING PRICE GROWTH: Monthly listing data also points towards a falling cliff of new listings - with far lower than average listing counts and stable median listing prices. Both data on current listings and listing prices indicate strong underlying market characteristics within Atlanta's housing market, fueled by solid demand and limited inventory.

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APPRECIATING RENTS AND HOME VALUES: While home values continue to increase, median rents have grown from under $1,300 in 2016 to approximately $2,100 in early-2023. Home values also align with rental growth, increasing from below $200,000 to over $275,000 between 2016 and 2023.

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WAGE AND EMPLOYMENT GROWTH: Atlanta's growing population and wages fuel both rental and home value growth. From 2010 to 2021, Atlanta's population grew by nearly 16%. Wages have also risen 63% between 2010 and 2021 in Atlanta.  The metropolitan area also continues to attract leading employers - with key tech companies and Fortune 500 companies increasingly viewing Atlanta as a key hiring and growth market.

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The Atlanta Metropolitan area continues to experience stable rental market growth, supported by constrained inventory and a growing population, wages, and strong employment characteristics.

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