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 Atlanta rental market has experienced significant recovery since the recession with home values increasing over 40% since 2011. However, Atlanta investment property home values still remain 7% below the prior peak and are expected to increase an additional 10% by 20191. This puts the Atlanta rental market 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 in the Atlanta investment property market 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.
In addition strong HPA forecasts for the Atlanta market, rent growth is expected to keep pace as well. We estimate that rents in the Atlanta investment property market 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.
What's attractive about Atlanta:
- 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
Factors to watch:
- Crime: Atlanta's crime index is the 26th highest in the US3
- Traffic: Atlanta's traffic congestion ranks the 13th worst in the US4.
Did You Know:
- 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
1 John Burns Real Estate Consulting, March 2016
2 NYU Furman Center/Capital One, National Affordable Rental Housing Landscape, March 2016
3 NeighborhoodScout crime index, based on FBI crime statistics
4 NPR (http://news.wabe.org/post/atlanta-traffic-congestion-ranks-13th-worst-nation)
2 NYU Furman Center/Capital One, National Affordable Rental Housing Landscape, March 2016
3 NeighborhoodScout crime index, based on FBI crime statistics
4 NPR (http://news.wabe.org/post/atlanta-traffic-congestion-ranks-13th-worst-nation)
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