Atlanta Multifamily Report – May 2022
Despite strong deliveries, occupancy is up in Georgia's capital.
Atlanta rent evolution, click to enlarge
Atlanta’s economy, rebounding faster than national averages, sustained the multifamily market and is likely to make a full recovery in 2022. Rates softened slightly in the first quarter of 2022, rising 0.3 percent on a trailing three-month basis, lagging the 0.7 percent national rate. However, between July 2020 and December 2021, rent growth in the metro outperformed the nation. Moreover, despite the record deliveries of 2021, occupancy increased by 40 basis points in the 12 months ending in February, to 95.4 percent.
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Atlanta sales volume and number of properties sold, click to enlarge
Metro Atlanta’s unemployment rate reached pre-pandemic levels, clocking in at 3.2 percent in February, on par with the state and 60 basis points below the U.S. rate. Employment expanded by 5.8 percent (174,400 jobs) in the 12 months ending in February, leading the national rate by 110 basis points. Atlanta’s largest sectors led growth, professional and business services (up 8.0 percent) and trade, transportation and utilities (up 5.9 percent) adding 77,900 jobs combined. Company expansions, as well as the $5 billion mixed-use Centennial Yards, are expected to further boost economic growth.
Following the record supply additions of 2021, developers delivered just 1,403 units in the first quarter of 2022, and had 26,018 under construction. Meanwhile, the transaction volume totaled nearly $2 billion, while the per-unit price rose 42.3 percent year-over-year.
