The Atlanta Metro area remains an attractive location for young professionals in tech startups and growing families alike.
This southeastern metropolis saw a job rate gain of 4.7% over the year in August, which is 0.3% above the national average. Additionally, the affordable real estate market and lucrative employment opportunities draw people from more expensive cities nationwide.
This 2022 Atlanta real estate market trend forecast provides insight into the city’s population growth, housing inventory, affordability, and mortgage rates. Additionally, we examine whether or not Atlanta is a profitable market for real estate investors.
Population growth
Atlanta ranks as the 4th fastest-growing city in the United States. For example, in 2020, the population was 524,067, a 24.78% increase from the data point recorded in the 2010 census.
Atlanta can contribute its population growth to several things:
- High Walkscore (82 out of 100)
- Notable economy (10th largest nationally)
- Plenty of multi-family rental properties
Housing inventory
The housing inventory in Atlanta continues to rise, as September 2022 saw a 2.67% increase in available listings, compared to August 2022.
Currently, there are around 15,891 active listings in the metro Atlanta area, which is an increase of 68.16% from September 2021.
Housing affordability
According to Realtor.com’s September 2022 report, Atlanta’s median list price is $8,000 less than the US median, making the median list price of $419,000 relatively affordable.
Zillow Home Value Index valued Atlanta homes at $400,541, which is a 13% increase from last year.
In comparison to other metropolitan cities, Atlanta remains affordable for first-time homebuyers. Out of all 50 metro areas in the United States, Atlanta ranks 23 for affordability for first-time homebuyers in 2022.
Mortgage rates
Mortgage rates continue to climb throughout the US and Georgia.
Here are the current mortgage rates in Georgia as of October 2022:
- 7.23% for a 30-year fixed
- 6.43% for a 15-year fixed
Is the Atlanta real estate market suitable for investors?
Investors find Atlanta an attractive market for several reasons. For one, homes have appreciated by 137% since November 2011. Norada Real Estate Investments considers Atlanta one of the best long-term real estate investments in the U.S.
In terms of housing options, one and two-bedroom complexes make up most of the city’s home share. Additionally, investors can find turnkey detached single-family homes, condos, and rowhomes.
Atlanta rental market
With a promising economy, Atlanta draws in students and young professionals, contributing to the city’s healthy rental market. Atlanta’s key industries include healthcare, science, and technology. Furthermore, Forbes predicts Atlanta is one of the top five cities to beat out Silicon Valley as a national center of technological growth.
In addition to a booming economy, Atlanta remains one of the largest and busiest transportation and logistics hubs nationwide. For this reason, the short-term rental market is highly profitable for real estate investors.
Vacation rentals in Atlanta, GA
Atlanta’s numerous tourist attractions also helped the short-term rental business. In downtown Atlanta, out-of-towners enjoy visiting the Georgia Aquarium (the largest in the U.S.), Centennial Olympic Park, World of Coke, and the National Center for Civil and Human Rights.
Atlanta is also a sports hub, hosting Super Bowls, the World Series, and the 1996 Olympics. With the new Mercedes Benz Stadium, Atlanta hopes to host the 2026 World Cup.
The city’s economy, technological growth, transportation hub, and tourist attractions are all reasons investors should consider owning real estate in Atlanta.
What to expect and how Virtuance can help
As we continue through 2022, we expect the Atlanta real estate market to continue to grow, but likely at a slower pace due to the season. House prices will remain affordable compared to other large cities, like San Francisco and New York, and will likely still attract first-time homebuyers.
We expect Atlanta’s economy to fuel population growth and boost demand for housing. We predict Atlanta being lucrative for investors hoping to rent to young professionals or tourists while allowing their home purchase to appreciate.
If you are a real estate professional in Atlanta, consider using Virtuance for your real estate photography needs. We have a network of real estate photographers in Atlanta, ready to take stunning HDReal® photos of your listing and help you remain successful in a shifting market.
