The atlanta real estate market shows a sign of recovery after it fell into crisis for the past two years because of the pandemic. We can see a better situation, especially for the metro area. The unemployment level is still worrying. But, the current situation is much better than last year. The price is increasing steadily.
Even during the pandemic, the crisis doesn’t affect the market too bad. The price might be fallen. However, it showed promising signs of returning to its original condition a year later. And then, it did! In 2021, the price was increasing by 20.3%.
According to the Atlanta Realtors Association, the median price for a home in 11-county areas is also increasing. It is 23 percent higher in January 2022 than the last year. Even though the overall value is still lower (0.5 percent lower) than the previous month, it is a good number that shows how promising atlanta real estate market is.
This article will help you learn more about the current situation of the atlanta housing market. We will try to give you detailed information about the real estate market and other elements that affect it. In the end, we hope you can use this article to help you buy or invest in Atlanta property. Let’s start!
Population and Growth in Atlanta Metro
The population of atlanta metro is an essential element that determines the condition and trend of the real estate market in this area. Why? It shows the growth of the population, which is the number of potential consumers of the real estate product. So, the population growth also can be used to forecast where the market will move in the future.
According to the U.S. Census Bureau, Metro Atlanta has a healthy population growth. There are also five essential keys regarding this matter, which are:
- Booming Population Growth
The population of the Atlanta metro area is 6.1 million, which is up about 800,000 or 15% since 2010. However, growth-rate-wise, Atlanta is a bit slower than in the previous decade. In the 1980s and 1990s, the population growth rate was 1.5% higher than in 2010-2020. However, the Census Bureau still put it in healthy growth status.
What makes the atlanta population growth booming these years? The answer is job availability. According to the Bureau of Labor Statistics data, the annual job growth reaches 1.7%. It shows that Atlanta has solved the recession problem in the past decade. The growth rate will keep increasing. That indicates the higher buying capability of people in Atlanta for property products.
- The All Areas Significant Population Growth
The high population growth is not only in the metro area. Census Bureau also has found that the suburbs area show strong growth as well. The fastest growth rate for this area is Forsyth with 43% of growth in 2020. However, the metro also is much better. The five largest counties in Atlanta show double digits growth between 2010 and 2020.
That means the housing market reaches various locations in Atlanta. Based on the location, the product type is also different. Thus, it provides more options for people who want to live in this area. Once again, we can say that this stats atlanta is the best thing you can find for the real estate market. More options, more customers, and a better situation in the market.
- More Diverse Population
The U.S. Census Bureau also found people from many countries and races live in Atlanta more than in the past decade. It means there will be more culture to merge and assimilate, which creates diversity in the job and living style. With more jobs and living styles, people will also come to get the house to live in this area. Thus, it improves the real estate market in Atlanta as well.
- Low Property Inventory
Unfortunately, the property supply for this growing atlanta real estate is low. In the past decade, Atlanta’s population has grown by around 684,000 people. However, the available new housing unit is only 238,000. It is lower than the demand that comes from that population growth.
That number shows around a 20% drop in the housing inventory. It seems that it could cause some problems in the future. However, we are unable to say too much because the U.S. Census Bureau has not released statistics related to housing and household. Once we get the data, you also can see whether the housing market is safe for the next few years.
- Atlanta Boosts Georgia’s Growth
The atlanta growth is not only affecting the situation in Atlanta. But, the Georgia states also receive the positive impact of this positive trend. The U.S. Census Bureau shows that the population in Georgia grew by 11% in the past decade.
With higher population growth in Georgia, it is a good thing for Atlanta. The probability of people around Atlanta moving into the area is much higher. They will need a living place to live and work in Atlanta. Thus, it can affect the real estate market significantly.
Atlanta Real Estate Market Stats
Based on the Atlanta population growth, the real estate market in this area is promising. According to Realtor.com, the atlanta home prices growth is predicted to reach a higher percentage than the national average. The prediction is 3.5%, higher than 2.9% of the national average. Then, the sales also grow higher by 10% annually.
Zillow also released its latest Home Value Index (ZHVI). It shows the home value in the Atlanta area is $390,396 in April 2022. Compared to the same month last year, this value has increased by 19.3%. And, if we take back to the previous five years, we can see a higher percentage. The increase is more than 71% over the past five years.
From that number, we can say that the atlanta real estate market is very active. The pandemic might slow down a bit the value growth. But, we can say that it has returned to its trend. Compared to the national home value by Zillow, the number is higher. That means the property in Atlanta is valuable. It is because of the environment, job, and other factors that make the people live comfortably there.
How much the living cost to live comfortably in Atlanta? This question popped up in our mind when we found the positive sign for the real estate market in Atlanta based on that Zillow data. Then, we also found that the average cost of living in atlanta is higher than the national average. However, NerdWallet stated that it is still 50% cheaper than San Francisco and 60% lower than Manhattan.
If we have to say the number, the estimation of the living cost in Atlanta is around $3,800 per month for a family of four and $1,057 for an individual. Moreover, those numbers don’t include the rent. Depending on where you live or the property type you choose, you can get an even cheaper living cost.
In a year, you should make at least $50,000 to live comfortably in Atlanta. It is expensive, indeed. But, with many job opportunities there, it is worth trying. Furthermore, as mentioned in atlanta real estate news, there is a solution to this high living cost problem.
As mentioned before, the population growth is high. Even though the housing inventory is low, we believe it won’t affect the real estate market growth. Therefore, it also stimulates the better development of the public infrastructure, like public transportation or restaurant.
With better infrastructure development, the cost to use them also could be cheaper. And, we believe you already know what we get from that. Yes, lower facilities cost means less expense we have to spend monthly. That also will lower the living cost in this beautiful city.
If the local government and investors can work together in this matter, we believe that will bring a positive result. The low living cost will attract more people to come to Atlanta. It also helps the real estate market to grow even bigger.
Atlanta Median Home Price
The living cost might be a reliable way to see the real estate market future in Atlanta. However, we also can’t ignore the price of the property itself. The price will affect how people can buy them. It also affects many other factors that contribute a lot to the real estate market situation.
According to Realtor.com data that was released in April 2022, the median price for a single-family home in Atlanta is $412,000. As for the median price for land or home measured on square feet, we get $265 per square foot.
How about the availability of a property? Realtor.com show 37 days as the median position. Interestingly, the median selling price is not that much different than the buying price. It is only $410,000. However, it has a sale-to-list price ratio of 101.7%. That means the selling price is a bit higher than the buying price.
What do those numbers mean? There are several things that we can conclude from those prices list.
- The price is higher than the U.S. national average price. It means you have to be in the high-buying-capability position to get a property in Atlanta.
- The buying and selling price is not that different show that the value of the property in Atlanta is high. It is also a chance for atlanta real estate investors. You can still get a property you can invest in for the future at more affordable prices, at least this year.
- The 37 days of availability is slightly worrying from our point of view. It means that fewer people are interested to buy property in Atlanta. Even though the inventory rate is low, there are no active transactions that occur. On a positive note, we also can see it as more option for you who want to try atlanta investment property.
In general, the housing price in the Atlanta area is not that bad. You have many chances to get the property that you need. Plus, you also don’t have to spend too much budget to start the investment. Furthermore, Realtor.com also releases more data regarding the best location where you can buy or invest in property.
According to Realtor.com, the highest median price for a home in Atlanta is Lenox Park, where its price reaches $975,000. As for the most affordable median price for a home, the location is Centennial Hill. It is only $280,000.
From this point, we believe that you know what you should do to start your property investment in Atlanta. Make sure you choose the correct property at the best location. The high population growth and infrastructure development in Atlanta will give you more profit in the future.
Of course, to get the best price, you can’t only depend on the atlanta median home price mentioned in this article. You also need to find the best real estate agency that helps you to find the best property that you need. Then, you can start your investment.
Pros & Cons
- High-value housing,
- Fast population and area growth
- Expensive living costs,
- High median price.
- Will housing prices go down in Atlanta?
Based on the latest trend and expert forecast, the price will increase more than the national average in 2022.
- Is this a good time to buy a house in Atlanta?
Last year was the best time to buy a house in Atlanta. Even though 2022 is not as good as last year, it is still a promising year to start investment property in Atlanta.
- Is it worth buying a house in Atlanta?
It has a low-interest rate, high population growth, and a sustainable economic environment.
The situation in atlanta real estate market is very positive. It has better property value. The price also keeps increasing. So, if you get a property in Atlanta, you will get better profit and benefits in the future. So, try it now and start investing or rent in Atlanta!