While it was the intersection of two railroads that gave birth to Atlanta, it is the happy confluence of a robust economy and the low cost of doing business that has kept her going.
In 2014, Atlanta was ranked first on Penske Truck Rental's list of the top 10 U.S. cities Americans are relocating to - for the fourth consecutive year. Atlanta's allure can be credited mainly to the impressive lineup of Fortune 500 companies that call the city home, including Home Depot, Delta Airlines and Coca-Cola.
Swayed by the city's well-educated populace (more than 47 percent of Atlanta residents age 25 or older hold a bachelor's degree or higher), NerdWallet put Atlanta on its list of the best cities to start a business in. The implementation of "Opportunity Zones," which populate the metro's talent pool by providing payroll tax credits for businesses that hire a steady stream of recent Georgia Tech and GSU grads, has helped Atlanta foster a booming startup culture.
Atlanta's real estate market looks quite healthy even though it took quite the punch during the recent housing market collapse. Prospective rental property owners may want to pay close attention to neighborhoods like Kirkwood, West End, Old Fourth Ward and East Atlanta, as they are growing in popularity. Demand for condos and townhomes in Atlanta is currently particularly high.
Q2 2015 Atlanta Rental Market Update
In Q2 2015, Atlanta was the fourth-best rental market in the Southeastern U.S. and 16th-best in the country as a whole. Since Q1 2015, Atlanta dropped one spot in both the Rental Ranking Report's regional rankings for the Southeastern U.S. and its national rankings.
When looking at the real estate statistics taken into consideration by the Rental Ranking Report, it's difficult to find fault with the Atlanta rental market. Admittedly, Atlanta's vacancy rate of 8.40 percent is a bit high (exactly 25 percent greater than the national average), and could be construed as indicating that there is relatively low demand for housing there, but other stats show the exact opposite.
Atlanta's incredible year-over-year rental price increase of 11.57 percent in Q2 2015 (132 percent higher than the national average and seventh-best in the country for that metric) and annual property value appreciation of 7.98 percent (57 percent higher than the national average and 13th-best in the country) should be enough to pique the interest of any savvy rental property investor. Perhaps as noteworthy is the fact that Atlanta's superb 2.94 percent annual job growth rate suggests that the demand for local housing is unlikely to decline anytime soon.
Q1 2015 Atlanta Rental Market Update
The Q1 2015 Rental Ranking Report found that Atlanta is the third-best market in the Southeastern U.S. for rental property investment and 15th-best in the U.S. as a whole. While Atlanta's annual rental cap rate and median rental price appreciation were just 6.93 percent and 2.45 percent, respectively, in Q1 2015 - slightly lower than the national averages of 7.18 percent and 2.71 percent - Atlanta rental property owners can still get solid returns on their investments. This is largely due to Atlanta's superb year-over-year home value appreciation of 8.87 percent, which was almost 60 percent larger than the national average.
Atlanta's strong home value appreciation can be attributed to its impressive annual job growth (3.89 percent) and high housing demand, the latter of which is best exemplified by its low median age of housing inventory of 53 days. It shows that demand for Atlanta housing - including rental real estate - is quite strong and will only continue to increase.
What data is this Rental Ranking Report based on?
To calculate the statistics found in the Q2 2015 Rental Ranking Report, All Property Management gathered data, including the most recent government housing and jobs data, for 75 metros across the United States. Specifically, we looked at home vacancy, capitalization, home value appreciation and job growth rates, changes in rental prices, and the average number of days properties have been on the market to determine which U.S. metros will give investors the highest returns on rental investments. Click here to learn more about the Rental Ranking metrics.
Should I invest in Atlanta rental property?
Thinking about renting out a property in Atlanta? Save time, avoid hassle and maximize your rental income by having a professional property management company operate your rental property for you. Click here to get a free quote from a local property manager or call 877-780-4510 to have the All Property Management staff get quotes for you.
All Property Management specializes in connecting rental property owners with professional property managers in communities across the United States. These property managers help set rental rates, advertise properties, screen and manage tenants, collect rent, manage vendor relationships and ensure compliance with local, state and federal housing regulations. They take the hassle and worry out of managing rental properties - all while maximizing rental property owners' rental incomes.