Housing Bubbles in US Cities The US economic outlook couldn’t…
Atlanta Housing Market Forecast
It’s the 4th fastest growing city in the nation. More than 660,000 people moved to Atlanta from 2010 to 2018, and that has created a huge demand for houses, townhouses and apartments.
This growth has a wonderful effect on Georgia’s economy and now residents are confident the good times are back. The population for Metro Atlanta rose 1.3% 5,874,249 in 2017 to 5,949,951 in 2018. It will pass the 6 million mark soon enough.
Job growth slowed in March, yet the unemployment rate is low at 3.9% and most are holding their jobs. The region is a hot bed for many businesses including startups. You can read more below.
Zillow forecasts a 6.3% rise in prices in Atlanta for 2019. Rent prices in particular have risen strongly of late suggesting strength in the housing market. NAR believes sales will drop by 1.90% and prices will rise 3.0% in the Atlanta area during 2019.
March 2019 Housing Sales Report
March residential home sales decreased 8.9% from last March and were 10% less than December’s totals. The average price of a home in Atlanta rose strongly 7.1% to $318,000.
The median sales price in March was $275,000, up 3.8% from last March. The average sales price was $344,000, up 6.2% from last March.
Atlanta area housing inventory rose to 13,046 units in March. That’s up 12.1% from March, 2018. New listings rose to 5,455 units which was up 11.4% from March, 2018 and up 19.3% from last month. Total listings increased to 2.7 months.
According to curbed.atlanta, rent price growth is increasing and supply is growing.
New Housing Developments in Atlanta
Curbed Atlanta reports 34 major development projects are underway in midtown Atlanta. This includes almost 2,400 apartments and condos under construction. Another 1,400 units are proposed.
Rentcafe cites the Atlanta community of Chamblee as have the fastest rent increases at a 44% clip over 5 year. During that time, renter income has fallen 8% and renter population has grown by 156%. That means high demand in a community of under 20,000 renters and 8400 homeowners.
Growing Demand for Rentals in Atlanta
Rentcafe cites the Atlanta community of Norcross as next in 5 year rent price growth here of 38%. Renter growth has grown 148%, yet renter income has dropped 17%.
The average rent price here is $1479 a month with 69% of rentals being between $1000 and $2000 per month according to Rentcafe.com. That makes it ideal for many incoming residents who may not see higher salary levels.
Atlanta’s population has grown as abundant job opportunities and affordable housing makes its mark in a country with very low affordability and housing crisis. The current situation isn’t all rosy. Georgia has problems with education levels, affordable health care, and a lack of suitably qualified talent.
Trends for days on market and prices are following a typical yearly cyclical pattern so there’s not much to report on changes.
As the economy improves, the typical selling price in Atlanta will appear as a bargain for many property investors. This may be one of the best cities to buy a property.
Atlanta Georgia Economic Outlook
Benjamin C Ayers of UofG said: “We predict job growth in all of Georgia’s 14 metropolitan areas and in all of the state’s major industries. Georgia will benefit from several reliable sources of growth—including an impressive economic development team, favorable demographic trends, more homebuilding and real estate development, higher defense spending, continuing fiscal stimulus from recent tax cuts and faster productivity growth.”
Growth will slow as consistent with the overall US economic growth forecast, yet Atlanta’s employment growth will see 68,900 more jobs in 2019.
If the $5 billion plan for development in Atlanta’s downtown should push forward, the picture becomes much rosier.
Unemployment has dropped to 3.1% from last year’s 4.1% rate. New housing permits are expected to drop 3.8% after 2018’s phenomenal 10.8% growth. That still makes Atlanta’s employment outlook positive.
Atlanta Housing Market Hits a Turning Point?
Some are wondering if the slowdown this winter with the government shutdown, trade wars, and higher interest rates will slow Atlanta’s housing market. What’s happening to Atlanta is no different to other cities. These are macroeconomic factors.
The Federal tariffs on Chinese products will create a transition period of economic activity. As multinationals are forced to bring production to the US, cities such as Atlanta look very attractive. Atlanta is a distribution hub making it a smart location for a new American headquarters.
Atlanta companies should be lobbying multinational corporations and other foreign corporations to locate in Georgia. This is one of the biggest business events of the last 30 years and those smart entrepreneurs and financiers will draw them to Atlanta. Are you considering moving to Atlanta to live and work? It could be one of the best cities for 2019.