It’s no secret that Atlanta is growing.
According to a recent report by the Atlanta Journal-Constitution, Atlanta is in the top 5 of the fastest growing large cities. The housing market has been big news over the last year following the COVID pandemic and the way home prices have skyrocketed. We thought we would bring you a few facts about the state of housing in Atlanta for those who are looking to transition into or out of a new home this year.
Atlanta is home to over 500,000 in the city and more than 6 million residents in the metropolitan area. Over the next 30 years Metro Atlanta is projected to reach a total population of over 8.6 million, according to the Atlanta Regional Commission (ARC). This means, where there are more people, there is a high demand for more housing.
This, in tandem with the job growth, is contributing to higher home prices. Simply, where there is more demand and less supply – prices go up. As of May 2021, the average single family home in Atlanta is around 395,000 depending on the area. The most affordable neighborhood to buy a home in Atlanta is Venetian Hills, where the average listing prices is 257,000.
In 2021, there was a mad dash for renters to become first time homeowners. Despite the pandemic, families and potential homebuyers took advantage of low home loan interest rates. What also happened, is that sellers saw an opportunity like none other. It was sellers market and that gave them the power to be more particular when choosing offers. Homebuyers were having to bid thousands of dollars over asking price as well as come out of pocket for higher down payments and closing costs.
This trend has been cause of a lot of heartache and headache for many seeking to transition into their own home this year.
New communities for rent are being built every single day in the city where 50% of the households rent rather than own. As the prices are high, millennials and Gen Z aren’t able to afford to buy, which leads them to find single family homes or co-living spaces to rent. The average rent in Atlanta is between 1500 – 2200 depending on the area. You can also find more affordable housing in neighborhoods like Leila Valley, Carver Hills, and Amal Heights where the average rent is around $825 per month or less.
Renters are finding the ease of finding housing, the convenience of property management, and the access to on call maintenance more appealing these days. While it may be financially beneficial to buy in the long run, it seems that renting is becoming more popular as people seek high quality living over the stressful transaction of home buying. Aside from this, very present hurdle of affordability keeps many content with renting over buying.