The capital of Georgia is one of the hottest locations on the US housing market for real estate investing at the moment. Investing in Atlanta real estate offers some of the best opportunities for growing your real estate investing business. Atlanta real estate investment is in the top lists of home appreciation as well. You don’t believe it? Let’s review some of the reasons for the benefits of Atlanta real estate investment. Moreover, we will show you what the best property type in Atlanta real estate investing is.
Related: Why You Should Invest in the Atlanta Real Estate Market Now?
Atlanta Real Estate Investment: Reasons to Invest There
#1 The Real Investment Opportunity in the Atlanta Real Estate Investment
Atlanta is one of the fastest developing cities in the United States. Many people from all over the world move to Atlanta each year. Consequently, Atlanta has around 100,000 new residents/yearly. The current population of the city is around 5.8 million people. They all need accommodation!
The reason behind this population growth in the fact that Atlanta is the base of 40 research institutes and colleges. There are many job positions offered in the city. Moreover, Atlanta is a huge distribution center. As you can imagine, Atlanta real estate investment is a smart choice.
#2 Atlanta Real Estate Market
Atlanta real estate market has been strongly growing for the past few years. Investment properties in Atlanta are very beneficial for their real estate investors. This is due to the fact that the demand for accommodation in the Atlanta real estate market shifts significantly from home-ownership to renting. This means that more and more people prefer to be tenants rather than home owners. Additionally, the monthly rents of any type of real estate property are continually increasing. For instance, the charged rents increased by 8.1% back in 2015 and 6.5% over 2016. Last but not least, Atlanta investment properties for sale have low mortgage rates.
For all the reasons mentioned above, Atlanta is considered to be the number one moving destination for the past six years. There are many young students and professionals who come to the city and, thus, help the growth of the Atlanta real estate market.
Are you interested in learning more about Atlanta real estate investment? Mashvisor provides additional insightful information in the form of a city guide for Atlanta as well as most other major investment cities in the US.
Atlanta Real Estate Investment: Traditional Rental Strategy vs. Airbnb Rentals
Before discussing the best property type for Atlanta real estate investment, we should first review the possible rental strategies in the city. Airbnb Atlanta is a great investment opportunity for every real estate investor. The city is famous for having the busiest airport in the country. Therefore, many people might need a short-term accommodation due to flight delays, big time gaps between switching flights, etc. Furthermore, Atlanta is also a tourist and recreational destination. However, statistics suggest that the demand for traditional rentals is higher. Also, the rental income generated through traditional rental properties is higher. Therefore, in the following section, we will explore the best real estate property type in terms of the traditional rental strategy in Atlanta.
Related: Atlanta’s Rental Market: Perfect for Real Estate Investing
Atlanta Real Estate Investment: What Is the Best Property Type?
There are many types of properties to buy in order to make money with Atlanta real estate investment. Such properties are apartments, condos, and townhouses as well as single family homes. As already described, a real estate investor has real chances of success investing in any type of property in Atlanta. This is due to the fact that there is little risk of having your rental property vacant because of the constant flow of people coming to the city. However, the most profitable real estate investments in the Atlanta real estate market are the single family homes. “Why is that so?”, you may ask. Here are some of the answers:
#1 Tremendous Growth in the Single Family Homes for Rent in Atlanta
The Georgia State University has conducted a research on the accommodation possibilities in Atlanta. The results reveal that there has been a significant increase in the rents of single family homes in the past ten years. The analysis shows that the single family home rentals increased by 67% between the years 2010 and 2015. It is considered that these patterns will have a lasting impact on the Atlanta real estate market. Additionally, the shift in demand from home ownership to renting might work in favor of rental properties such as single family homes. The reason behind this is the fact that people who are currently living single or without kids in smaller rental properties would eventually like to move to a bigger place, such as single family homes. Instead of buying it, regarding the new real estate trend, they would be willing to rent it.
#2 Atlanta’s Population Demographics
Another research regarding Atlanta’s population and demographics reveals that 49% of the population in the city lives in family households with kids. In comparison, 38% of the people are living alone. People who inhabit family households are more likely to rent single family homes rather than apartments, for instance, as single family homes offer more space. Also, these properties are situated in quiet neighborhoods perfect for families. Additionally, the demographics reveal that many young professionals live and move to Atlanta. Many of these job-opportunity-seekers come to the city along with their families. This is yet another reason to believe that single family homes are the best property investments in Atlanta.
#3 Demand for Single Family Homes in Atlanta
Atlanta is rated as one of the most desired cities to move in and start a new life. Most of the people, including young professional, tend to move to the suburbs as soon as they change cities. There are several reasons for that. First of all, suburbs offer a diversified population in which a newcomer can easily fit. Another reason is the fact that most of the people, newcomers or not, are searching for a calm space, which the suburbs offer. Why talking about suburbs? Good question! Most of the rental properties in the suburb areas are, namely, single family homes. Many young families and couples thinking about the future are interested in renting such a property. Therefore, the demand for single family homes for rent in Atlanta is high.
Related: Investing in Single Family Homes: Why It’s a Must
Are you willing to be a successful real estate investor? Consider buying a single family property in Atlanta, Georgia! To start out your property search in the best possible way, check out Mashvisor.