Migration Trends Favor Rental Demand
Atlanta’s relatively affordable rental market has rebounded, with a helping hand from migration from higher-priced cities. The average rent, which contracted for a brief period through June, marked a 0.7% uptick on a trailing three-month (T3) basis through November, to $1,354. The figure remains below the U.S. average, which was flat on a T3 basis for the fourth consecutive month, at $1,465.
Although employment contracted by 6.1% in the 12 months ending in September, the metro was among the country’s top performers during the recovery phase. Unemployment dropped from a 12.7% peak in April to 6.6% in September, and preliminary data for October pointed to continued improvement, with the rate sliding to 4.7%. Atlanta’s workforce composition allowed a substantial share of employees to work from home. In addition, trade, transportation and utilities—the largest sector—inched up 0.5% in the year ending in September and is poised for continued expansion. Still, air travel and the leisure industry continue to struggle due to a lack of visitors, which, in turn, is affecting tax revenue collection.
Development and transaction activity softened in 2020 through November. Developers delivered 9,090 units and had 19,604 units underway, while transaction volume reached $3.8 billion. Meanwhile, the price per unit rose 16.6% to $139,308.
Read the full Matrix Multifamily Atlanta Report-Winter 2021