As Atlanta becomes taller, denser, and arguably more exciting, the city’s rent prices, of course, follow suit.
In fact, a recent study published by RealPage indicates that, nationwide, only three markets are seeing rents climb faster than those in Atlanta.
Phoenix, Las Vegas, and Sacramento each trumped Atlanta’s 5.3 percent year-over-year increase, with 8.1, 6.6, and 5.6 percent upticks, respectively.
Atlanta shares the No. 4 spot on the list of fastest rising rents with Memphis and Greensboro.
Thankfully, Atlanta’s average rent price, $1,215—a $73 jump since January 2018—is still cheaper than the national average, $1,356.
Although it seems the city could be on track to hurdle that figure in the not too distant future.
Nationwide, as of this past January, rents were rising at an annual rate of 3.4 percent.
And just since January 2018, Atlanta’s mean rent cost has gotten $11 closer to the national average.
A main thrust of Atlanta’s rental market growth is progress in the most expensive Class A apartments in places like downtown, Midtown, and, of course, Buckhead, according to the report.
“Apartment demand in Atlanta has been solid for a number of years, as evidenced by the market’s sustained rent growth. A brief slowdown in local construction activity in 2017 led to lower deliveries in 2018,” RealPage market analyst Carl Whitaker said, according to a press release.
Construction activity, though, was abundant in 2018, surpassing the previous record from 2016.
“That recent uptick in construction activity may create stiffer competition for operators looking to push rents,” Whitaker added. “Still, demand is healthy in Atlanta, and we expect rent growth to remain strong by national standards but slightly softer than what the market saw in 2018.”
In just the past year, Atlanta developers have delivered roughly 8,700 new apartments.
That might seem like small potatoes compared to the 14,000 units added in 2017, but experts predict another 12,500 should be completed over the next 12 months, boosting the city’s apartment stock by 1.3 percent.