Atlanta is the capital of Georgia as well as the most populous city in the state. Atlanta is also the 38th largest city in the US in terms of population, with over 486,000 residents, 60% of whom rent a property rather than own a home. This is a very positive sign for those who are thinking of buying a rental property in the Atlanta housing market, particularly with regards to traditional, long-term rentals.
Atlanta comprises the cultural and economic center of the Atlanta metropolitan area. With a population of 5.8 millions, this is the ninth most populous metro area nationwide and the tenth largest economy in the US. Atlanta boasts a strong and diverse economy, which is one of the main attractions for real estate investing. The main economic sectors include professional and technical services, trade, education, healthcare, leisure and hospitality, manufacturing, and financial activities. The city hosts the third largest concentration of Fortune 500 companies across the US. Atlanta is also a busy transportation hub.
Tourism is a crucially important industry in Atlanta. The city receives more than 35 million visitors per year, which makes it the seventh most popular tourist destination in the US. The tourism sector is driven by the numerous outdoors attractions as well as the historic museums among others. Some of the major tourist attractions include the Georgia Aquarium, the World of Coca-Cola, Centennial Olympic Park, the Atlanta Botanical Garden, the Martin Luther King, Jr. National Historical Park, Zoo Atlanta, the Atlanta History Center, and Six Flags Over Georgia. The strong tourism sector makes Atlanta one of the best cities for Airbnb investment.
The Atlanta real estate market has been and remains one of the best places to buy an investment property. This has recently been confirmed by PWC, which named the Atlanta housing market as the 10th most important US Market to Watch in 2019 for overall real estate perspectives. According to PWC’s Emerging Trends in Real Estate: United States and Canada 2019 annual report, Atlanta constitutes an attractive primary market with readily available real estate investing opportunities.
|Facts and Market Trends in Atlanta|
|Homes For Sale5,639|
|Traditional Vacancy rate6.10%|
|Airbnb Occupancy Rate47.72%|
|Median Rent Price$2,070|
|Median Days on Market79|
|Price to Rent Ratio17.2|
|Average Cap Rate|
|Average Rental Income|
|Median Household Income$77,382|
|RENTAL STRATEGY||STUDIOS||1 ROOM||2 ROOMS||3 ROOMS||4 ROOMS|
Real estate appreciation has been moderate for Atlanta, GA homes for sale. According to NeighborhoodScout, since 2000, Atlanta property values have increased by 63%, which brings an average annual appreciation rate of 2.6%. Meanwhile, Zillow reported a 12.2% increase in the median listing price in the Atlanta real estate market over the past year. This housing market trend is expected to continue, which makes Atlanta a hot seller’s market with large opportunities for long-term return on investment.
Nevertheless, Atlanta investment properties remain affordable at the moment. This makes the local housing market one of the best cities to invest in real estate even for first-time property investors who are usually short on financing.
The Airbnb rentals industry has been on the rise in the Atlanta real estate market, similar to other top tourist and business destinations in the US. The good news for real estate investors who consider this rental strategy is that Airbnb Atlanta rentals are fully legal.
Airbnb hosts in Atlanta, nonetheless, have to obtain both a hotel license and a business license. Moreover, Airbnb real estate investors have to pay hotel occupancy tax.