Atlanta, colloquially known as the “Capital of the South,” is a large and growing market with interesting investment opportunities. The metropolitan area, officially defined as Atlanta–Sandy Springs–Alfaretta, has a population of over six million and hosts the headquarters of many well-known companies such as Coca-Cola, CNN, and Chick-fil-A. (all of which oddly start with the letter “C”), and has an excellent sports scene anchored by the Hawks (NBA), Braves (MLB), and Falcons (NFL).
In this article, we’ll cover Atlanta’s housing market and economy and offer investment tips from an expert in the city.
House prices
Atlanta’s median home value is approximately $375k, which is approximately $50k below the national median. Below, you can see that year-over-year growth is back to just above 0% after a massive increase during the pandemic.
Like other similarly sized cities like Dallas, prices in Atlanta have remained flat and even declined for a while. Because price growth is falling, you can expect prices to continue falling in the near future. However, that won’t stop me from investing in Atlanta, as there is still strong demand. For example, take a look at this sample data from Redfin:
Clearly, like many other destinations in the South, a lot of people are setting their sights on Atlanta. This should help propel prices during the remainder of the correction and help Atlanta continue to grow.
Furthermore, when we look at what is going on with supply, it is clear that the imbalance of supply and demand is still pushing up domestic prices.
As you can see in the chart above, new listings are currently hitting new lows, and inventory is falling off a cliff. Days on Market (DOM) is increasing despite market dynamics, but I will note that DOM is in line with what we used to see pre-pandemic and nothing is normal compared to that.
Overall, Atlanta is still a seller’s market, but not as unaffordable as many other markets across the country.
cash flow capacity
Atlanta is a mixed bag when it comes to cash flow. Below is the rent-to-value (RTP) ratio for each Atlanta metro zip code. An RTP ratio close to 1% is generally a good indicator of cash flow. That said, you’ll find plenty of areas south of the city that can provide you with quality cash flow each month. Answer above, not so much.
The top overall ZIP Codes by RTP are:
- 30303 – Downtown Atlanta (.99%)
- 30315 – Lakewood Heights (.87%)
- 30354 – South Atlanta (.83%)
- 30349 – South Fulton-College Park (.78%)
- 30314 – Hunter Hills (.77%)
rent trends
Rent in Atlanta has been rising steadily since 2016. Only within the last year has growth slowed down like the rest of the country. Overall, the average rent costs around $1,940/month at the time of writing.
Based on what I said earlier, strong demand and migration will likely keep rent prices up throughout the year and beyond.
economics and demography
If you’ve ever been to Atlanta, you’ll know the traffic there is on a horror scale with LA. Part of this is because it has a very solid job market to maximize its commuter time. According to WalletHubAtlanta ranks 21st for best job markets in the United States.
As previously mentioned, Atlanta is home to many large corporations, but it also has considerable education, healthcare, and tourism sectors. With a median age of 37, a median household income slightly over $77,000, and an unemployment rate of 2.7% (0.7% below the national rate), Atlanta has strong demographics for long-term growth, making its case a is carried forward as a solid. Buy and hold destination.
winning strategies
Matt Nicklin, an investor-friendly real estate agent in Atlanta, recommends “buy and hold investing and house hacking as great strategies for the Atlanta market.”
If you’re interested in learning more about investing in Atlanta, partner with a local investor-friendly real estate agent like Nicklin, who can guide you through strategies, tactics, and neighborhoods to focus on.
Here’s how to contact Matt Nicklin at Agent Finder:
– Search “Atlanta, GA”
– Enter your investment criteria
– Select Matt Nicklin or other agents you wish to contact
Nicklin is a longtime real estate investor in direct ownership and syndication, having purchased his first rental in 2010 prior to his primary home. He is also the owner of OneSource Real Estate—a full-service real estate brokerage specializing in real estate sales and property management—through which he has helped a range of investors start and grow their portfolios. From partnering with novices to pros, Nicklin’s experience spans the spectrum of creative finance, flips, long-term rentals, wholesaling, syndication and note strategies.
Find Elite Agents in Minutes
Use Agent Finder to connect with local market experts like Victor Steffen, Kim Meredith-Hampton, and Matthew Nicklin.
- Find a target market like Dallas, Tampa, or Atlanta
- Enter investment criteria
- Select investor-friendly agents that suit your needs
Note by BiggerPockets: These are the views expressed by the author and do not necessarily represent the views of BigPockets.
