It’s no secret that Atlanta’s been gaining attention in the last few years. It’s also no secret that real estate-wise, Atlanta’s among the better performing markets nationwide. Below, we provide an overview of the Atlanta real estate market to underscore the importance of this market in 2017 and to show why you should invest in an Atlanta rental property now.
Atlanta Real Estate Overview
Atlanta real estate is not different from many other US housing markets in the sense that it continues to suffer from inventory shortages, especially in the downtown and the suburb areas. Meanwhile, Atlanta real estate property prices continue to increase mainly because of the mentioned shortage in inventory of homes which has caused a mismatch between supply and demand. This places Atlanta real estate among the country’s other challenging seller’s markets.
So if there’s one thing you should know about Atlanta real estate: prices are only going up. Real estate experts are uncertain as to whether property prices will cool down any time soon. And what’s been really interesting in that regard is that home sales actually went up by 7.7% between 2015 and 2016. 2017 hasn’t yet seen a clear increase in home sales from 2016, but things are looking quite well for real estate investors. As for bank loan interest rates, the latest Kiplinger forecast expects “the average 30-year fixed rate mortgage to rise to 4.6%, with 15-year fixed rates at 3.8%” by the end of this year.
The Atlanta housing market has also been growing in popularity among Millennials. And the latest trend among Millennial real estate consumers is that they are focusing less on renting and more on buying. Either way, the Millennials’ inflow into the city has been boosting the local economy, pushing up the demand for real estate properties, and strengthening the rental and housing markets alike.
It’s important to mention that not all areas in the Atlanta real estate market are worth investing in. Some neighborhoods are a profitable investment decision, while others rather lack profit-making potential. To find out which Atlanta neighborhoods to invest in and which to avoid, make sure to look up Atlanta in the search bar on Mashvisor!
Atlanta Real Estate in Numbers
Median Property Price: $393,752
Average Airbnb Rental Income: $1,033
Average Traditional Rental Income: $2,137
Airbnb CoC Return: 2.07%
Traditional CoC Return: 3.72%
Airbnb Cap Rate: 2.07%
Traditional Cap Rate: 3.72%
Median Rent Per Month for Traditional Investment: $1,500
Note: The reason the cap rate and the CoC return have the same value in the provided data is because Mashvisor’s calculations assume only cash payments are made (i.e., no mortgage).
Mashvisor also indicates that the top neighborhoods in Atlanta include Atlantic Station, Buckhead Village, Buckhead Forest, Ridgedale Park, and Garden Hills. For more detailed data on these specific neighborhoods and others, use Mashvisor’s investment property calculator! We offer data for the expected monthly rental income, the CoC return, the cap rate, the cash flow, occupancy rates, cost analysis, and much more, each divided for traditional and Airbnb rental strategy. You can also use our investment property calculator to gain market and neighborhood analysis, as well as comparisons between different investing options.
Atlanta is home to several global company headquarters including The Coca-Cola Company, CNN, AT&T Mobility, Delta Air Lines, UPS, and many more. It is also the birthplace of the Dogwood Festival and The Atlanta Film Festival which both draw in a large number of visitors every year. This is good news for real estate investors favoring short term rentals as both business travelers and tourists are constantly attracted to Atlanta.
What’s new? Did you know that Atlanta is currently home to Airbnb’s most popular listing? Deep in the woods of the city lies the Secluded Intown Treehouse, up on more than 151,330 Airbnb traveler’s wish list! The listing has been the talk of multiple travel magazines, websites, and shows including Thrillist and Today Show, among others. This has given Airbnb Atlanta more attention is the last few months and has attracted an increased number of tourists into the city.
In terms of the service itself, Airbnb Atlanta is quite successful. The city itself is in fact a great Airbnb investment. As you can see from our numbers above, the average Airbnb rental income is $1,033, while the Airbnb cap rate and CoC return values are 2.07%. So while in general the city offers better traditional investment options, Airbnb Atlanta is also profitable.
To Sum Up on Atlanta Real Estate
It’s no secret that Atlanta real estate market has foreseen substantial growth in 2017. The city’s rents and yields are on the rise, and so are its population and demand for rental properties. At the same time, some Atlanta neighborhood real estate markets are on a lag. This is why you have to be smart if you decide to invest in Atlanta real estate. Make sure to use Mashvisor to find the best data and make savvy investment decisions!