Costs & Traits In 2023

Atlanta, colloquially known as the “capital of the South,” is a big and rising market with fascinating funding alternatives. The metropolitan space, formally outlined as Atlanta–Sandy Springs–Alpharetta, has a inhabitants of over six million and hosts the headquarters of many well-known corporations equivalent to Coca-Cola, CNN, and Chick-Fil-A (all of which oddly begin with the letter “C”), and has a wonderful sports activities scene anchored by the Hawks (NBA), Braves (MLB), and Falcons (NFL).

On this article, we’ll cowl Atlanta’s housing market and financial system and provide investing suggestions by an knowledgeable within the metropolis.

Dwelling Costs

Atlanta’s median house worth falls round $375k, which is lower than the nationwide median by about $50k. Beneath, you may see that year-over-year development is falling again to only over 0% after an enormous spike in the course of the pandemic. 

Median Sales Price in Atlanta (2017-2023)
Median Gross sales Worth in Atlanta (2017-2023)

Costs in Atlanta have been flat and even declining for some time, similar to different equally sized cities equivalent to Dallas. As a result of worth development is plunging, you may count on costs to proceed falling within the close to future. Nonetheless, this wouldn’t deter me from investing in Atlanta, as there’s nonetheless sturdy demand. As an example, take a look at this pattern of knowledge from Redfin:

Quarterly Net Flow of Redfin Users for Atlanta (2017-2022) - Redfin
Quarterly Internet Movement of Redfin Customers for Atlanta (2017-2022) – Redfin

Clearly, loads of persons are setting their sights on Atlanta, similar to many different locations within the South. This could assist buoy costs all through the remainder of the correction and assist Atlanta proceed to develop.

Plus, after we think about what’s occurring with provide, it’s fairly clear that the imbalance of provide and demand remains to be propping up house costs. 

Inventory and New Listings in Atlanta (2017-2023)
Stock and New Listings in Atlanta (2017-2023)

As you may see within the chart above, new listings are presently reaching new lows, and stock is dropping off a cliff. Days on market (DOM) is rising, regardless of the market dynamics at play, however I’ll word that the DOM is extra according to what we used to see pre-pandemic and never something out of the atypical when in comparison with that. 

Days on Market in Atlanta (2017-2023)
Days on Market in Atlanta (2017-2023)

General, Atlanta remains to be a vendor’s market, however not as unaffordable as many different markets all through the nation.

Money Movement Potential

Atlanta is a combined bag with regards to money movement. Beneath is the rent-to-price (RTP) ratio for every Atlanta metro ZIP code. RTP ratios nearer to 1% are usually a superb indicator of money movement. That stated, you’ll discover loads of areas south of town that may get you high quality money movement each month. Up north, not a lot.

Rent-to-Price Ratio by ZIP Code in Atlanta
Lease-to-Worth Ratio by ZIP Code in Atlanta

The highest total ZIP codes by RTP are:

  1. 30303 – Downtown Atlanta (.99%)
  2. 30315 – Lakewood Heights (.87%)
  3. 30354 – South Atlanta (.83%)
  4. 30349 – South Fulton-School Park (.78%)
  5. 30314 – Hunter Hills (.77%)

Lease Traits

Lease in Atlanta has been rising persistently since 2016. Solely inside the final 12 months has development slowed, similar to the remainder of the nation. General, median hire prices round $1,940/month as of writing.

Median Rent Over Time in Atlanta (2016-2023)
Median Lease Over Time in Atlanta (2016-2023) – Redfin

Primarily based on what I stated beforehand, sturdy demand and migration will seemingly maintain hire costs in line all through the remainder of the 12 months and past.

Economics and Demographics

If you happen to’ve ever been to Atlanta, you’d know that the visitors is up there with LA on the size of horror. A part of it’s because it’s received a fairly stable job market amplifying its commuter time. In line with WalletHub, Atlanta is ranked twenty first for the most effective job markets in the US.

As talked about earlier, Atlanta is house to many giant firms, nevertheless it additionally has appreciable training, healthcare, and tourism sectors. With a median age of 37 years previous, a median family revenue is simply over $77,000, and an unemployment fee of two.7% (0.7% beneath the nationwide fee), Atlanta has sturdy demographics for long-term development, furthering its case as a stable buy-and-hold vacation spot.

Profitable Methods

Matt Nicklin, an investor-friendly actual property agent in Atlanta, recommends “buy-and-hold investing and home hacking as nice methods for the Atlanta market.”

If you happen to’re desirous about studying extra about investing in Atlanta, associate with an area investor-friendly actual property agent like Nicklin who can information you thru the methods, techniques, and neighborhoods to give attention to.

Right here’s how you can contact Matt Nicklin on Agent Finder:

– Search “Atlanta, GA” 

– Enter your funding standards

– Choose Matt Nicklin or different brokers you wish to contact

Nicklin is a long-time actual property investor in direct possession and syndication, buying his first rental in 2010 earlier than his major house. He additionally owns OneSource Actual Property—a full-service actual property brokerage specializing in actual property gross sales and property administration—by which he’s helped an array of traders get began and develop their portfolios. From partnering with rookies to professionals, Nicklin’s expertise spans the spectrum of artistic finance, flips, long-term leases, wholesale, syndication, and word methods.

Discover an Elite Agent in Minutes

Use Agent Finder to attach with native market consultants like Victor Steffen, Kim Meredith-Hampton, and Matthew Nicklin.

  • Search goal markets like Dallas, Tampa, or Atlanta
  • Enter funding standards
  • Choose investor-friendly brokers that suit your wants

Observe By BiggerPockets: These are opinions written by the creator and don’t essentially symbolize the opinions of BiggerPockets.