Q4 2022 Multifamily Real Estate Report: Atlanta, GA
Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.
Atlanta is known for its rich history, diverse culture, and thriving business and entertainment districts.
Unemployment in the city steadily declined throughout Q4 2022, from 2.9% in October to 2.6% in December. There was a population growth of 1.73% from 2021 (5.91 million) to 2022 (6.01 million) in the metro area.
In Q4 2022, Atlanta’s multifamily real estate market witnessed falling rents and increasing vacancies over Q3 2022.
General Area Overview & Demographics
The estimated total population of Atlanta is around 496,400 residents, making it the most populous city in the state. The city is home to a diverse population with a demographic breakdown of approximately 51% Black or African American, 40% White, and 5% Asian, among other ethnicities.
Atlanta, GA Median Household Income & Population
Median household income in Atlanta is around $67,000, with a significant portion of the population earning between $50,000 to $100,000 per year. The cost of living in Atlanta is generally lower than in other major cities across the United States, making it an attractive location for young professionals and families.
The city has a relatively young population with a median age of around 34, with approximately 22% of people under 18. It has seen significant growth in recent years, with many young professionals moving to Atlanta for its thriving job market, affordable cost of living, and vibrant culture.
Higher education is well-represented in Atlanta, with numerous institutions such as Georgia Tech, Emory University, and Georgia State University providing world-class educational opportunities.
It’s renowned for its diverse attractions, including the Georgia Aquarium, the World of Coca-Cola, and the Martin Luther King Jr. National Historic Site.
Atlanta experiences a humid subtropical climate, with hot summers and mild winters. Average temperatures in the summer months range from 71°F to 89°F, while winter temperatures range from 34°F to 53°F.
Summary of Atlanta Multifamily Real Estate Performance in Q4 2022
Overall occupancies for Atlanta multifamily real estate were at about 92.8% in Q4 2022. Downtown Atlanta posted the highest occupancy at 94.9%, while Brookhaven/North Atlanta came next at 94.7%.
Westside Atlanta saw the lowest occupancies at 89.5% and was the only submarket with an occupancy rate below 90%.
Multifamily absorption was negative in 2022, totaling -486 units. I-20 East saw the lowest absorption at -765, with Sandy Springs/Dunwoody close behind at -731.
I-85 North/Gwinnett County saw a positive absorption of 852 units, the most of any other submarket in Atlanta.
What are multifamily rents like in Atlanta?
Rents for Atlanta multifamily real estate averaged around $1,616 per month, a decline from Q3’s $1,625.
Overall rents were highest in Midtown Atlanta at $2,156 and Buckhead at $2,045; these were the only submarkets with average rents above $2,000.
West Midtown saw the lowest rents at $1,271, with West Atlanta edging ahead at $1,273.
Purchase & Leasing Activity
Median price per unit for Atlanta’s multifamily real estate market was $202,000, continuing its upward trend since 2018.
Transaction volume declined over 20% quarter-over-quarter, and sales volume decreased 40% year-over-year.
Notable Multifamily Real Estate Deals in Atlanta in Q4 2022
There were several notable deals that took place for Atlanta’s multifamily real estate market in Q4 2022:
- Weinstein Properties purchased Elan Powers Ferry for $127.5 million.
- The Laramar Group purchased Mandalay Villas for $81.5 million.
- Birge and Held Asset Management purchased The Clarion for $59 million.
These are select examples among other activity.
New Multifamily Real Estate Development Activity in Atlanta in Q4 2022
Over 4,100 new multifamily units came online in the fourth quarter, bringing 2022’s annual total to 12,800 units delivered.
About 27,500 units were in the pipeline at the close of last year. North Gwinnett and Outlying Gwinnett County submarkets account for 50% of that pipeline.
A key project under construction is Science Square, which will provide 500 residential units in Downtown Atlanta when finished in Q3 2024.
Market Forecast for Atlanta’s Multifamily Real Estate Market
In 2023, Atlanta’s multifamily real estate market may see a moderate decline due to accelerating inventory additions and a more tempered pace of economic expansion.
However, demand remained relatively stable in recent years, and experts expect vacancy rates to hover around 5% by the end of the year.
Local and out-of-state investors will likely focus on the region’s robust multifamily fundamentals and significant supply growth.
Takeaways for Multifamily Real Estate Investors
Atlanta’s position as one of the top multifamily investment markets in the country is likely to remain intact in the year ahead.
Interested investors can still find opportunities throughout the region, despite expecting a sales velocity slowdown at the beginning of 2023.
Do your research, stay diligent, and happy investing.
Find & Connect With Commercial Agents & Brokers in Atlanta, GA for Free on MyEListing.com
MyEListing.com is an entirely free-to-use commercial real estate data & listing platform. Use our national database of commercial agents & brokers for free to find an agent or broker in Atlanta, GA.
Other recent articles
Article Search
Share
All Article Categories
