Source: US News —
There’s a reason many homebuyers flock to Atlanta. Between its warmer climate and the fact that it’s home to a large number of thriving, well-known businesses, it’s easy to see why the city appeals to a range of buyers, from singles looking to establish careers to families aiming to plant roots.
Jenni Bonura, president and CEO at Harry Norman, Realtors, points to this broad appeal as a reason for Atlanta’s strong housing market today. But if you’re thinking of buying a home in Atlanta, or investing in one, then it’s essential that you have a solid pulse on the real estate market there. Here’s what you need to know about the market today and looking forward, based on information from the U.S. News Housing Market Index.
Single-family home construction slowed down in Atlanta in 2022 compared with 2021. Based on data from the U.S. Census Bureau, permit activity dropped from 2,272 in January 2022 to 1,348 in January 2023 – a 41% year-over-year decrease.
On the other hand, construction for multifamily homes ticked upward. In January 2023, there were 2,015.833 housing permits issued for multifamily buildings housing two units or more, a 126% increase over January 2022’s 892.667 permits. This is the highest number since at least 1995.
Atlanta Housing Supply and Demand
Despite a slowdown in single-family home construction, Bonura says that housing inventory in the Atlanta metro area is fairly strong.
“Broad market inventory is up,” she says. In fact, for the broad market, Bonura says Atlanta is seeing a 4-month supply of homes, and luxury homes in Atlanta are at a whopping 10.9-month supply.
For context, it typically takes a 6-month supply of homes to fully meet buyer demand, but in some markets, a 4-month supply will equalize things nicely. It’s also worth noting that on a national scale, total housing inventory as of the end of January sat at a 2.9-month supply, according to the National Association of Realtors.
Now it’s worth noting that Atlanta has recently seen a big uptick in property listings. As Bonura explains, “For our market, spring starts in February.” Spring is a common time for housing inventory to pick up, so Atlanta may have gotten a bit of a jumpstart.
Meanwhile, the rental vacancy rate for Atlanta as of January 2023 was 5.4%, representing a decrease of 0.9% from one year prior, based on data from the U.S. Census Bureau. The U.S. rental vacancy rate for the fourth quarter of 2022 was at 5.8%, putting Atlanta’s vacancy rate below the national average.
As far as homebuyer demand goes, a healthy level of inventory has created a situation where “we’re still seeing multiple offer situations,” Bonura explains. But, she adds, “not to the same degree as we were at the peak of the market.”