Have Rents Topped out in Atlanta?

have rents topped out in Atlanta?We’ve been watching the rental market in Atlanta closely and watching those rents go up and up.  We’ve wondered where it would end and have rents topped out in Atlanta?  Two recent items piqued our interest.  First, Atlanta Business Chronicle reported that Atlanta had the 9th largest rent rate drop between April and May.  In the article they reported, ‘Madison, Wisc.-based ABODO’s National Apartment Report: May 2016, found Atlanta saw average rents for a 1-bedroom apartment fall from $1,305 to $1,266 — a 3 percent decrease.’   That’s a significant drop.  Is it a trend?  We think so (although not 3% per month!).  There has been an incredible amount of apartment building in Atlanta but that supply is now catching up to demand.  That brings us to item 2.  Pollack Shores had a 325 unit building planned on Pharr Rd. But they’ve shelved that project because they feel the intown market is overbuilt.

We don’t think this means demand for housing in Atlanta is slowing.  On the contrary, rents are still high and supply is tight.  But there are many buildings still coming online in the next 24 months.  There’s also a shortage of entry level single family homes, condos and townhomes.  It’s hard to get condo financing and finding land to build new homes is difficult as well.  And people are still moving intown the city.  As millennials start to form families they’ll move out of apartments and begin buying.  Keeping up with and managing these changes will be a challenge for buyers and Realtors.  If you’re thinking ofbuying or selling you need a Realtor that’s experienced and knows the intown market.  That’s where Bottomley Real Estate Group comes in.  We have been working and researching the Atlanta real estate market since 2000 so we’ve pretty much seen it all.  Give us a call at 404-245-4960 or shoot us an email today.  We’d love to help you!

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