Healthy Demand Boosts Fundamentals
Atlanta’s multifamily market posted strong performance throughout 2021, boosted by robust population and corporate expansions. Rent growth finally softened in November, decelerating to a 1.2% rise on a trailing three-month basis, to $1,627, outperforming the national average, which rose 1.0% to $1,590. Upscale units in urban areas were especially in high demand, reflected in the segment’s occupancy rate, which rose 180 basis points to 95.4% in the 12 months ending in October.
The employment market accelerated its rebound in June and in the 12 months ending in September posted a 6.3% expansion, trailing the U.S. rate by 10 basis points. Meanwhile, unemployment stood at a tight 2.4% in October, according to preliminary BLS data, outperforming the 4.6% U.S. rate. The skilled talent pool helped boost the metro’s largest sector—professional and business services—up 38,400 positions in the 12 months ending in September. Expansions by Google, Apple, Microsoft, Visa and Airbnb, among others, will likely sustain growth.
Developers delivered 13,030 units in 2021 through November, marking a new decade high, and had another 20,882 units underway. Transaction volume also peaked, totaling $8.7 billion through November, and the price per unit rose 14.6% year-over-year, to $170,593.
Read the full Matrix Multifamily Atlanta Report-January 2022