MARKET SNAPSHOT
$1,615 3Q 2024
90.5% 3Q 2024
6,203 [YTD: 16,900]
-2.1% 3Q 2024
-20 BASIS POINTS
5,754 [YTD: 20,425]
Demand has returned to Atlanta’s multifamily market, but after a record wave of new supply, property managers are contending with elevated vacancies and declining rents.
Developers are working on 22,000 units, representing a 4.2% expansion of the market’s apartment inventory. Although this is substantial, Atlanta’s share of under-construction units is smaller than many other Sun Belt markets.
Despite short-term challenges, Atlanta’s long-term multifamily outlook remains strong. The market consistently ranks among the top U.S. metros for net migration, population growth and business expansion.
Demand has returned to Atlanta’s multifamily market, but after a record wave of new supply, property managers are contending with elevated vacancies and declining rents. In Q3 2024, over 6,200 units were absorbed, slightly outpacing new deliveries for the first time since mid-2021. Outlying Gwinnett County and Midtown led demand, with 983 and 618 net new units absorbed, respectively. Only five of Atlanta’s 39 submarkets reported net move-outs, highlighting the overall strength of demand in Atlanta’s multifamily market in the third quarter.
While Atlanta’s under-construction pipeline has significantly decreased since a year ago, the number of units still underway is 62% higher than the 2014-2024 quarterly average. Developers are working on 22,000 units, representing a 4.2% expansion of the market’s apartment inventory. Although this is substantial, Atlanta’s share of under-construction units is smaller than many other Sun Belt markets, including Phoenix, Charlotte, Nashville, and Austin. With an average of 18,000 units delivered annually since 2024, supply-side pressure will remain pronounced in the coming quarters, particularly among higher-end properties.
With steadily rising demand in 2024, Atlanta’s apartment market saw only a modest 20-basis-point decline in the stabilized occupancy rate, bringing the average to 90.5%. Forecasts predict stabilization by year-end and continuing into 2025. Half of Atlanta’s submarkets reported steady or improved occupancy levels compared to the previous year, with more than half of the 39 submarkets posting rates at or above the market average. Lamar County led the way with an impressive 98.9% occupancy. Economic momentum is expected to further support the multifamily market, as a slowdown in construction starts signals fewer new deliveries by 2026.
With supply still outpacing demand on an annual basis, rents shifted downwards for a sixth consecutive quarter, falling -2.1% at the close of the third quarter. As has been the trend over the past year, rents are expected to moderate further until the supply overhang is fully absorbed. Market-wide, luxury-tier assets have seen the most significant rent declines, down 2.8% year-over-year. High-end properties in development hotspots will continue to face competition from new units for several more quarters. In comparison, rents in mid-range assets have decreased by 1.9%, while workforce housing rents have remained relatively stable, increasing by 0.9% over the past year.
In August 2024, the Atlanta, GA metro added 39,700 jobs, marking a 1.3% increase in employment compared to the previous year, despite the unemployment rate rising by 50 basis points to 4.0%, still outperforming the national average of 4.2%. The Education and Health Services sector led job creation, adding 16,500 new positions, reflecting solid 4.0% growth. Meanwhile, the Leisure and Hospitality sector posted the largest expansion, growing by 4.4% with 13,800 jobs added since August 2023, driven by a resurgence in tourism and entertainment activities across the metro.
August 2024 ANNUAL JOBS CREATED
AUGUST 2024 EMPLOYMENT GROWTH
AUGUST 2024 Unemployment rate 4.2% us August rate
Nominal Change
from August 2023
to August 2024: 16,500
Percent Change: 4.0%
Nominal Change
from August 2023
to August 2024: 13,800
Percent Change: 4.4%
Nominal Change
from August 2023
to August 2024: 13,200
Percent Change: 3.8%
Nominal Change
from August 2023
to August 2024: 5,100
Percent Change: 2.5%
Nominal Change
from August 2023
to August 2024: 3,400
Percent Change: 3.3%
| Sector | Nominal Change from August 2023 to August 2024 | Percent Change |
|---|---|---|
| Education and Health Services | 16,500 | 4.0% |
| Leisure and Hospitality | 13,800 | 4.4% |
| Government | 13,200 | 3.8% |
| Financial Activities | 5,100 | 2.5% |
| Other Services | 3,400 | 3.3% |
| Mining, Logging, and Construction | 3,100 | 2.1% |
| Manufacturing | 200 | 0.1% |
| Professional and Business Services | -4,100 | -0.7% |
| Information | -4,600 | -4.6% |
| Trade, Transportation, and Utilities | -5,200 | -0.8% |
South Korean-based solar panel manufacturer Qcells is completing a $2.5 billion expansion project 30 minutes north of Atlanta, coming online in phases through.
The banking giant is adding 40,000 square feet of office space in Monarch Tower to accommodate an additional 500 employees by the end of 2025.
In Q3 2024, Aspen Aerogels Georgia LLC received a commitment for a loan of up to $670 million from the Department of Energy to build a battery manufacturing facility near Statesboro, GA.
Atlanta has experienced one of the largest multifamily inventory expansions in the post-pandemic period, which has limited operators’ ability to raise rents. However, renter demand is beginning to align with new deliveries, and slowing construction starts are expected to ease supply pressures. Positive year-over-year rent growth is anticipated by mid-2025. Despite these short-term challenges, Atlanta’s long-term multifamily outlook remains strong. The market consistently ranks among the top U.S. metros for net migration and population growth, similar to other Sun Belt cities. Sustained household growth and migration will continue to drive apartment demand. Additionally, the Education and Health Services sector plays a critical role in job creation and housing demand. Atlanta’s expanding technology sector and its educational institutions, which produce over 40,000 college graduates annually, further bolster the region’s economic strength and multifamily market prospects.
