Atlanta Multifamily Market Report
Q2 2022 Report
The Atlanta metro ranks as one of the top markets in the nation, as values are rising double the national average pace causing investors to pour capital into the multifamily sector. Its strong demographic trends, paired with the year-over-year rent growth at 11.9 percent, makes Atlanta a commercial real estate hot spot. Owners have capitalized on the surge of demand since the pandemic and the tighter-than-usual housing market across the region. As seen in recent months, rent hikes are starting to moderate, due to net absorption in late 2021 and early 2022.
Atlanta’s vacancy rate sits well below the ten-year average for the metro. The demand for housing in the area is high due to strong household growth and increased in-migration. There are approximately 26,000 units under construction in the area, which will likely push vacancies higher over the next few quarters. Atlanta has a deep pool of renters-by-necessity due to the market’s extensive blue-collar industries, which will balance out vacancies.
Atlanta rent is now 25 percent above where it was at the start of 2020. The current year-over-year growth of 11.9 percent is well above the national average of 9.9 percent. The rent increase can be attributed to seasonality, net absorption, and rising vacancies in late 2021 and early 2022. The daily asking rent per square foot is at its highest in five years, at $1.62 per square foot. Year-over-year growth in the Four and Five Star cohorts sit at 11.1 percent.