Atlanta Multifamily Report – January 2023
While unemployment is tight, rental fundamentals are moderating.
Mirroring the national trend, Atlanta’s multifamily market is cooling down. In-migration is moderating, dampening the demand for housing. This, paired with substantial inventory expansion, seasonal softening and various economic challenges, turned rent growth negative, down 0.2 percent on a trailing three-month basis through November, to $1,722. Occupancy dropped 120 basis points in the 12 months ending in October, to 94.4 percent.
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Atlanta’s jobless rate stood at 2.9 percent in October, placing the metro well below the 3.7 percent U.S. figure, according to data from the Bureau of Labor Statistics. Employment expanded by 5.9 percent in the 12 months ending in September, outperforming the 4.2 percent national rate. While construction struggled with shortages and was the only sector to lose jobs during this period, gains were led by the metro’s largest sectors—professional and business services (40,300 jobs) and trade, transportation and utilities (34,400 jobs). Moreover, with the city already a hotspot for the EV industry, Hyundai has two multibillion-dollar investments announced and already underway, set to begin commercial operation in 2025.
Developers delivered 10,100 units in 2022 through November and had another 33,086 units underway. Surprisingly, nearly 16,000 of these broke ground this year. Meanwhile, investment totaled $10.8 billion, for a price per unit that advanced 14.5 percent year-over-year, to $204,909, not far behind the $215,443 U.S. average.