Atlanta’s real estate market is constantly changing, making it essential for real estate professionals to stay updated on the latest trends and developments. Single-family rentals, in particular, offer a unique and lucrative opportunity for those in the real estate industry.
With a growing demand for rental properties in Atlanta, agents and brokers knowledgeable about the single-family rental market can provide valuable advice to their clients, setting themselves—and their marketing—apart in a competitive market.
Whether you’re a seasoned professional or just starting out in Atlanta real estate, we have all you need to know about Atlanta’s single-family rental market for 2023.
Atlanta real estate market overview
According to NAR, Atlanta will likely be the housing market with the most growth in 2023. Often known as the “New York of the South,” Atlanta is far more affordable than comparable cities, allowing the market to flourish even in uncertain times.
The Atlanta Regional Commission (ARC) estimates the Atlanta region could grow to 8.6 million people by 2050. The area’s total employment could increase by 34%, making the area’s total job count 4.7 million. This is mainly due to the area’s affordable housing, quality of life, and access to major transportation hubs.
Additionally, the area is becoming a destination for businesses. Atlanta offers a diverse and educated workforce, access to capital, and a competitive cost of doing business. As of April 2022, the largest employers in the Atlanta Metropolitan area were Delta Airlines, Emory Healthcare, and The Home Depot. Tech giants like Apple and Microsoft are also looking to expand in Atlanta.
Average home price in Atlanta
In December 2022, Realtor.com found the median list price in the Atlanta-Sandy Springs metro area to be $399,900, a 2.6% growth from December 2021. As of January 2023, there are 15,257 active listings in the Atlanta-Sandy Springs-Roswell metro area, down 11% from December 2022. This indicates the demand for homes is increasing while the supply decreases, creating a competitive market at the start of 2023.
Redfin calculated the median days on the market to be 45 days for single-family homes in December 2022, slightly higher than Jan 2022’s 36 days. In comparison, the median days on the market in February 2020 was 70 days. The median sales price is $452,500, further indicating that single-family homes sell faster and for more money in Atlanta, even in a turbulent market.
And while mortgage rates and inflation are impacting the home buying process, the rental market in Atlanta has actually seen a decrease in rent growth by 2% year over year, making renting a single-family home even more affordable.
2023 Atlanta single-family rental market forecast
As the Atlanta housing market is one of the few on track to grow in 2023, the supply and demand for single-family rentals remains balanced. In February 2023, it’s estimated that 55% of homes in Atlanta were renter-occupied.
As rent trends downward and mortgage rates remain high, more first-time home buyers, such as Millennials and Gen Zers, will likely continue to rent.
In fact, Apartment List found that 24.7% of Millennials plan to be “forever renters.” While this is partly due to low inventory throughout 2020 and the COVID-19 pandemic, over 80% of Millennials don’t believe buying a home will be achievable in the coming decade. So, even if the market begins to correct itself throughout 2023, most first-time home buyers will unlikely feel financially secure enough to buy a home.
Interestingly enough, research by ARC also found that areas in Atlanta with a large Millennial population ranked higher than the national average for rental rates, further indicating the strength of Atlanta’s rental market.
Average rent in Atlanta
Per Zumper, the average rent for a 1-bedroom apartment in Atlanta is $1,706. Compared to December 2022, rent for studios to 4-bedroom apartments has remained flat or decreased, reflecting the shift the rental market is seeing in Atlanta.
Rent.com estimates the average rent of apartments in Atlanta, GA is between $1,790 and $2,420 as of February 2023.
These numbers are also reflective of the single-family rental market averages. The U.S. Census found the median household income in 2021 to be $69,164, further proving the average rent of a single-family home fits comfortably in most households’ budgets.
Looking forward
The Atlanta metro area currently has one of the top build-for-rent markets in the U.S., with 1,404 BFR homes currently under construction. As these builds are completed, and the supply of single-family homes and inventory grows, the demand for rentals could decrease—especially if mortgage rates and home prices begin to stabilize in the second half of 2023.
That said, it’s unlikely the rental market will suffer. As the Atlanta housing market continues to grow and median housing prices remain high, there will be a constant need for affordable, single-family rental housing, especially with the population influx in the next 30 years.
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FAQ
Atlanta’s single-family rental market will likely continue to grow in 2023. As rent prices decrease, the median listing price of homes increases, and the population continues to grow in Atlanta, a consistent demand for affordable, single-family rental homes will continue.
Atlanta is on track to be one of the fastest-growing real estate markets in 2023. Even with higher mortgage rates and inflation, the market continues to grow, with an average listing price of around $400,000.
