The heat index isn’t the only thing breaking records this summer, as rents soar to new heights across Atlanta.
New reports this week bring bad news for Atlanta renters — but terrific news for developers and landlords. While many have expressed fears that all the residential construction in Atlanta is tantamount to overbuilding — or even the onset of the dreaded B-word — numbers released by Rentcafe indicate the market is still ready for growth.
In fact, according to a study by Adobo, one-bedroom rents soared a staggering 11 percent in July alone, to an average of $1,451, making Atlanta the sixth-fastest growing market in the country.
RentCafe reports that while 12,000 units are on their way to delivery, the surge in availability doesn't necessarily mean prices will come down soon. What's more, numbers released by the Atlanta Regional Commission show growth within the city limits this year is far outpacing previous years, according to Creative Loafing. The City of Atlanta grew by almost 8,000 people in the year ending in April. Contrast that to the year before (4,800 new residents) and 2013 (just 1,200 new residents).
And we wonder why weekend traffic is now such an issue.
New residents, coupled with new high-paying jobs (hello, NCR), means that rents could continue to rise as the construction of apartment towers in this development cycle eases. If, in fact, it ever does.
The RentCafe report notes that while new construction is at a 10-year high, rents are trending high as well, and will continue to be fueled by "strong job growth and favorable demographics."
Maybe it's a matter of perspective.
Perhaps Atlanta rents still seem like bargains, compared to its coastal brethren. Or perhaps it's time to buck the millennial trend and take advantage of Atlanta's relatively low cost of purchasing.
- National Apartment Report: August 2016 [Adobo]
- Apartment Construction at a 10-Year High, Eases Pressure on Rental Prices in Booming Markets [RentCafe]
- ARC: Atlanta boomed between 2015 and 2016, adding nearly 8,000 new residents [Creative Loafing]
- Study: How Much You Need to Save to Buy an Atlanta Home [Curbed]