Atlanta Investment Property Market

Atlanta Investment Property Market Overview

Atlanta is the 9th largest metro area in the U.S. and spans 39 counties with an estimated population of 6.2 mm people. The market has experienced significant recovery since the recession with home values increasing over 40% since 2011. However, home values still remain 7% below the prior peak and are expected to increase an additional 10% by 20191. This puts Atlanta near the top of the list in terms home price appreciation (HPA) potential over the next 4 years.

Increasing Number of Renters and Strong Market Fundamentals

Atlanta has the highest share of renter households in single-family homes with 44% of all renter households living in a Single-Family Rental (SFR) property2. This is up from just 33% in 2006. While this is a national trend, consumers shifting from ownership to rentals is much more pronounced in Atlanta.

In addition strong HPA forecasts for the Atlanta market, rent growth is expected to keep pace as well. We estimate that rents will increase in the high-single digits over the next four years, which should support yields and rent increases.

Furthermore, when it comes to underlying fundamentals that drive SFR investment returns (job growth, household growth, income growth, and housing supply), Atlanta continues to show strength on all fronts.
  • HPA and rent growth: Some of the strongest home price and rent growth forecasts in the nation
  • Demand: continued shift from home ownership to renting
  • Economic tailwinds: Continued market strength as more people move to the region, fueling job and household growth
  • Supply constraints: Limited supply of inventory (new and existing homes) in one of the most densely populated regions in the country
  • Crime: Atlanta's crime index is the 26th highest in the US3
  • Traffic: Atlanta's traffic congestion ranks the 13th worst in the US4.
  • Atlanta is home to the busiest airport in the world, the Hartsfield-Jackson Atlanta International Airport
  • The world headquarters of news network CNN is located in downtown Atlanta

Real Estate Investment Insights

Investment Style: High Yield
While each property will differ, this market is more likely to have properties where the rental income is high relative to the value of the property.
Inventory:
Home Value *
$180,400
$200,700
National Avg
Home Value Growth (YoY)
7.8%
6.8%
National Avg
Rent **
$1,355
$1,427
National Avg
Source: Financial data from Zillow includes single family, condo & cooperative homes, updated on 07/31/2017
Job Growth (YoY)
3.5%
1.5%
National Avg
Household Growth (YoY)
2.0%
1.0%
National Avg
Estimated Months of Resale Supply
3.1%
4.3%
National Avg
Household Income
$63,200
$59,303
National Avg
Supply, Demand & Affordability data includes single family homes only, updated on 08/16/2017
  • Arrows indicate the directional change since the last update. No arrow indicates that there was no change in the data or no previous data is available.
  • * Home Value: includes all types of housing, including primary resident, condos, investment properties, etc.
  • ** Rent: includes all rental properties, including Single-Family Homes, multi family units, etc.