Atlanta Housing Market 2023
According to Zillow's Home Price Forecast for 2023, markets like Columbus, Atlanta, Houston, and Dallas, which Doorvest operates, are expected to grow into 2023, unlike cities throughout California like San Jose and San Francisco.
Atlanta has experienced steady and consistent growth over the past couple of years. After skyrocketing price growth in 2022, 2023 is leveling out.
Tightened lending standards
Many buyers have shied away from the market as interest rates make it increasingly difficult to qualify for homes.
Low inventory holds prices high
According to Redfin data, the number of homes sold is down 51.3% from the previous year, while homes are still selling quickly. The sharp decrease in achieved sales is a direct reflection of how low inventory levels are. There just aren't enough homes hitting the market.
Because the market is so tight, home prices aren't dropping in response to rising interest rates. Furthermore, home builders aren't developing as quickly or at the same volume levels as they were, meaning that new construction is limited in a market with a growing population due to significant interstate migration.
Rent growth in Atlanta
Residential rental rates tend to increase with inflation, and Atlanta is no exception. For example, the average rent for a studio apartment in the neighborhood of Grant Park increased 57% over the past year. Restricted single-family home inventory and high-interest rates are forcing some potential buyers to remain renters for the time being, meaning that the rental demand remains incredibly strong.
Why you should love Atlanta investment properties:
Strong population growth - 1.55% over the past year.
Expected rent growth in 2023
Low vacancy rates
A technology hub with Apple, Alphabet, Microsoft, and Visa opening offices in the city.
While real estate markets across the country may appear unstable right now, Atlanta is holding strong. The city will benefit from corporate investment and interstate migration, while real estate investors can look forward to continued appreciation and rental rate increases. As a result, Atlanta remains an attractive city for real estate investors.
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