📊 The Gist: Atlanta’s rental market exhibits resilience and growth, highlighted by a stabilizing effect from new apartment constructions and a robust suburban market.
🏙️ The Details: According to RentCafe, Atlanta’s rental market in 2023 was buoyed by a 2% growth in new apartment inventory, with the suburbs experiencing a nearly threefold increase in new apartments compared to the previous year (2.99% vs. 1.07%).
This surge provided renters with more options. The average time to fill rentals in Atlanta was 41 days, longer than the national average of 38 days, while in the suburbs it was 44 days. The lease renewal rate in the suburbs, although lower than the previous year, surpassed the national average at 64.4%. In Atlanta, the renewal rate was 59.3%, aligning with the national average. Occupancy rates in both areas hovered around 92%.
📈 By The Numbers:
- Atlanta’s new apartment inventory increased by 2% in 2023.
- Suburban new apartment growth was almost three times higher than the previous year.
- 9 renters competed per unit in Atlanta, 8 in the suburbs.
- Lease renewal rate: 64.4% in suburbs, 59.3% in Atlanta.
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🌐 In Context: The Atlanta rental market in 2022 was characterized by high interest rates and a decrease in market activity. Rental prices were expected to rise again in 2023, but at a slower pace compared to previous years. Atlanta was one of the few major cities in the southeastern U.S. to experience a year-over-year rental price decrease, with prices cheaper on average by 1.4% from 2021 to 2022.
🔍 Why It Matters: Atlanta’s robust rental market growth is significant amid a backdrop of rising interest rates and financial stress impacting real estate sectors. The city’s rental market resilience is partly due to healthy occupancy and rent growth, with vacancy rates below the national average. Additionally, Atlanta’s demographic changes, infrastructure investments, and a business-friendly environment contribute to a strong long-term outlook for its rental housing market.
🏠 What You Can Do: For renters in Atlanta looking to transition to homeownership, the current market offers opportunities. With rental prices stabilizing and homeownership becoming more attainable, residents have more choices in their housing decisions.
🔮 What’s Next?: The near-term future of Atlanta’s rental market may see some challenges due to outsized supply deliveries impacting submarkets, potentially affecting occupancies and rent growth. However, alternative housing forms like build-to-rent and active adult communities are gaining traction and are expected to continue growing. Despite some volatility and regulatory changes, Atlanta remains a key destination for rental housing due to its diverse neighborhoods and opportunities.
