Atlanta Multifamily Report – Winter 2020
- Mar 06, 2020
Atlanta’s educational system is a magnet for residents as well as companies in search of talent. The multifamily market is equally attractive, posting sustained demand even after robust apartment deliveries in recent years. New inventory slowed rent growth in 2019, with the average rent rising 3.1 percent to $1,310 year-over-year through December—the lowest rate in the past eight quarters. In addition, high deliveries have pushed down the occupancy rate in stabilized properties—down 30 basis points to 94.0 percent in November.
Employment growth moderated last year, with the expansion rate at 1.9 percent year-over-year through November, slightly above the national average. All sectors expanded, with education and health services leading with 14,900 new jobs over the 12 months ending in December. One of the top-tier industries in the state—the leisure and hospitality sector—continued to advance, gaining 12,600 jobs in 2019. Professional and business services rounded out the top three with 7,900 jobs. As the fourth fastest-growing market for tech jobs in the U.S., this sector will likely continue to accelerate. Google, Invesco and Norfolk Southern’s announced expansions will provide further growth for the industry’s job market.
Deliveries posted the second best year of the cycle with 10,733 units coming online in 2019. Transaction volume totaled $6.3 billion, with investors mainly drawn to value-add plays.