Why Consider Investment Properties in Atlanta? Because Atlanta is one of the largest metropolitans in the US. It has been ranked as the #1 city people are moving to. Additionally, Atlanta recorded over 50 million visitors in 2015; which makes it the 7th most visited city in the US and a popular Airbnb destination – not to mention that Hartsfield Jackson Atlanta International is the world’s busiest airport.
Atlanta’s real estate market has been one of constant growth in both the suburbs as well as the metro area over the past decade. Plus, the current trend of turning industrial buildings into trendy apartments has increased the number of potential investment properties in Atlanta.
The city is headquarters to several global companies such as The Coca-Cola Company, CNN, AT&T Mobility, Delta Air Lines, UPS, and many more. It is home to the Dogwood Festival and The Atlanta Film Festival which draw in a large number of visitors every year.
The investing opportunities are great in Atlanta but here’s some important information to know beforehand.
Related: Top 5 Major Cities for Buy-and-Hold Investment Properties
A Seller’s Market
Before anything, it is important to understand that
Atlanta’s current real estate market is a seller’s market. Conditions are not in favor of buyers. Property supply in Atlanta is low, which makes demand much higher than supply. In a seller’s market, inventory is usually low. The Atlanta REALTORS® Association reported a supply inventory of 16,509 units as of July 2016. Another feature of a seller’s market is that very few property listings exist, and if they do, it is for a short period of time. Not only that, the average housing prices increase as well. In Atlanta, the median home price shot from $105,000 in 2012 to $250,000 as of August 2016. The low supply is creating pressure on the prices.
The real estate seller’s market has been widespread in many states in the US. This can be traced back to the fact that the US’s largest generation,
the Millennials, are the main customers in the real estate market. Most of whom are graduated, working, and can afford to buy property.
Despite the fact that it is currently a seller’s market in Atlanta,
these numbers showcase the great investing opportunities in the city – both traditional and Airbnb – which is why doing some extra research for a property could be worth it!
Related: Is It A Buyer’s Market Or a Seller’s Market?
Atlanta’s Investment Properties In Figures
- City Average Traditional CoC Return: 6.58%
- City Average Airbnb CoC Return: 10.04%
- Median Home Price: $265,606
- Average Traditional Monthly Income: $1,663
- Average Airbnb Monthly Income: $2,606
5 Top Neighborhoods for Investment Properties in Atlanta
The following neighborhoods are our top recommendations when considering
investment properties in Atlanta
A very famous retail and residential area, the Atlantic Station offers the authentic urban experience.
- Occupancy Rate: 57.90%
- Average Airbnb Rental Income/month: $2,278
- Average Traditional Rental Income/month: $1,545
One of 42 neighborhoods in Buckhead District, Buckhead Village is as one of Atlanta’s most vibrant communities and a famous historic business section. It is a common destination for visitors of the city. Buckhead Village attracts visitors who enjoy shopping, fine dining, and seeing the Atlanta History Center.
- Occupancy Rate: 61.48%
- Average Airbnb Rental Income/month: $2,452
- Average Traditional Rental Income/month: $1,621
Located in the upscale Buckhead area, the tucked away neighborhood with tree shaded passageways and striking cottages is a favorite among many in Atlanta.
- Occupancy Rate: 60.11%
- Average Airbnb Rental Income/month: $2,309
- Average Traditional Rental Income/month: $2,602
This upper middle-class neighborhood is located in an urban forest. The neighborhood is also known to house some of Atlanta’s top public schools.
- Occupancy Rate: 63.70%
- Average Airbnb Rental Income/month: $2,689
- Average Traditional Rental Income/month: $2,436
It is known as one of the city’s most beautiful and social neighborhoods. It is appreciated for its proximity to shopping areas, restaurants, and night clubs. Real estate prices in Garden Hills differ from one property to the next. The neighborhood is highly recommended for families for its parks, schools, recreational areas, and other reasons.
- Occupancy Rate: 61.09%
- Average Airbnb Rental Income/month: $2,128
- Average Traditional Rental Income/month: $2,283
Other top neighborhoods in Atlanta include Lindbergh, Oakland, and several others. For more insight on the above neighborhoods and more, use Mashvisor’s investment property calculator and the site’s features. We will help you understand where to invest using information such as property listings, rental income, cash on cash return, and cap rate.
Related: Investment Property Calculator For Analyzing Real Estate Investments
Some Things to Consider
We believe that it is very important for you as an investor to fully understand concerns regarding the city and its circumstances. If you are considering buying an
investment property in Atlanta it is important to realize these concerns to better forecast the future.
One concern regarding Atlanta’s real estate market is the fact that housing prices are going up. Some real estate agents believe that Atlanta cannot handle such an increase in prices, and that the Atlanta housing bubble may soon burst. That being said, you must be cautious in Atlanta’s unstable environment.
Moreover, it is important to note the fact that not all parts of Atlanta are currently thriving. Some markets are better than others. Some areas are a good investment, while others are not.
Additionally, choosing a location altogether is a challenge in Atlanta. The city has often been described to have ‘no real center’, meaning it is difficult to pin down one specific location as a good one, when Atlanta expanding well into non central districts and neighborhoods such as Cumberland and Buckhead.
Some other (less pestering) concerns the public transportation system, some unsafe neighborhoods, the crime rate, and the unpredictable weather may discourage some from investing in the city.
This is where we come in. Mashvisor allows you to better analyze real estate markets by providing you with data on investment properties in Atlanta and listings that you can use as comps to figure out the right type of investment for you.