average rent
average occupancy rate
ytd sales volume
YoY rent change
yoy occupancy change
ytd individual transactions
QUARTERLY DEMAND
YTD: 4,557
QUARTERLY COMPLETIONS
YTD: 9,905
Following two years of fluctuating demand highs and lows, apartment absorption in Atlanta bounced back in the first half of this year. The city absorbed 2,952 units in Q2, just shy of the typical Q2 average of roughly 3,400 units seen over the past decade.
During the second quarter, positive net absorption was exhibited in 22 of Atlanta’s 39 submarkets. The Midtown submarket led in terms of the number of absorbed units with 466, a figure nearly equivalent to the 479 units delivered within the same period.
Recent apartment completions in Atlanta have been notably high, with 9,905 units delivered in the first half of 2023.
Over the past year, the local inventory base has expanded by 3.0%, with the highest concentration of newly delivered units being located in Midtown Atlanta and the Far North Atlanta Suburbs.
It remains a question whether demand levels can keep pace with the growing number of new deliveries. In the short term, both rent, and occupancy performance are anticipated to moderate, reflecting the natural effect of excess supply over demand.
Looking at the long term, rents and occupancy are projected to begin stabilizing from mid-2024 onwards.
Atlanta performed strongly in 2021 and 2022 due to economic recovery and increased in-migration. However, the city now contends with high new supply levels spurred by its robust fundamentals.
By the end of Q2 2023, Atlanta had 36,575 units under construction, 21,780 of which are set to be completed within the next year, mainly in Midtown Atlanta and Northeast Gwinnett County.
Average Monthly Mortgage Payment
Average Monthly Rent
* The Average mortgage payment is based off a median home sales price of $412,000 as reported by the Atlanta Association of Realtors as of June 2023.
Due to continued supply and demand imbalances, occupancy in Q2 2023 dropped by 0.3 points quarter-over-quarter and 2.7 points year-over-year to 93.0%, which is 1.5 points below the pre-pandemic rate of 94.5%. Among product niches, Class A units led with 93.4% occupancy, closely followed by Class B at 93.1%. Class C units reported the largest annual occupancy decline, falling by 3.9 points to 92.6%. Occupancy rates varied across Atlanta’s submarkets, with Southeast DeKalb County reporting the lowest rate at 89.8%, and Southeast Gwinnett County leading at 94.7%. Despite recent supply increases, urban core occupancy stayed close to the market average, registering 92.8% in Q2 2023.
Despite the solid demand in Q2 2023, Atlanta’s annual rents dipped by 0.3%, marking the first rent cut since mid-2020. On a quarterly basis, however, operators were able to raise the effective asking rent by 0.4%. In terms of product classes, only Class A units saw annual rent growth, gaining 0.8%, while Classes B and C recorded annual decreases of 0.8% and 0.4% respectively. Rent performance varied across Atlanta’s 39 submarkets, with Doraville leading at a 7.7% annual growth. More than half of the submarkets recorded annual rent cuts in Q2 2023, but this figure improved quarterly with only 13 submarkets reporting cuts in the first quarter. Looking ahead, Atlanta’s rents are expected to stabilize and return to positive growth, aligning with historical average rates by late-2024.
| Submarket | Average Occupancy | Annual Occupancy Change | Average Monthly Rent | Annual Rent Change |
|---|---|---|---|---|
| Downtown Atlanta | 93.3% | -2.1% | $1,978 | 1.0% |
| Midtown Atlanta | 92.9% | -2.5% | $2,131 | -1.4% |
| Northeast Atlanta | 92.2% | -2.9% | $1,861 | -0.4% |
| Southeast Atlanta | 92.5% | -3.2% | $1,704 | 0.3% |
| South Atlanta | 92.5% | -4.0% | $1,285 | 3.2% |
| West Atlanta | 92.4% | -2.0% | $1,873 | -1.5% |
| Buckhead | 93.0% | -2.1% | $2,087 | -0.1% |
| Sandy Springs | 92.6% | -3.0% | $1,770 | -0.5% |
| Dunwoody | 92.3% | -3.2% | $1,810 | -3.3% |
| Chamblee/Brookhaven | 94.1% | -1.9% | $1,783 | -0.4% |
| Doraville | 93.9% | -3.0% | $1,520 | 7.7% |
| Briarcliff | 94.0% | -2.1% | $1,693 | 0.6% |
| Decatur | 93.1% | -2.1% | $1,852 | -1.2% |
| Clarkston/Tucker | 94.6% | -2.9% | $1,458 | 2.4% |
| Stone Mountain | 92.3% | -3.2% | $1,332 | -0.8% |
| South DeKalb County | 91.4% | -4.4% | $1,309 | 1.0% |
| Southeast DeKalb County | 89.8% | -5.3% | $1,440 | 0.6% |
| Henry County | 91.8% | -2.9% | $1,605 | -2.2% |
| Clayton County | 92.2% | -3.1% | $1,330 | 2.3% |
| South Fulton County | 91.2% | -4.9% | $1,325 | -1.8% |
| Southwest Atlanta | 91.9% | -3.5% | $1,431 | -1.3% |
| South Cobb County/Douglasville | 92.7% | -2.8% | $1,485 | -0.6% |
| Smyrna | 93.6% | -2.5% | $1,661 | -0.9% |
| Vinings | 93.5% | -2.4% | $1,857 | 0.5% |
| Southeast Marietta | 92.7% | -2.6% | $1,557 | -1.1% |
| West Marietta | 93.2% | -3.5% | $1,457 | -2.6% |
| Kennesaw/Acworth | 93.9% | -2.3% | $1,659 | -4.1% |
| Northeast Cobb/Woodstock | 92.3% | -3.9% | $1,693 | -2.1% |
| Roswell | 92.1% | -3.6% | $1,739 | 0.8% |
| Alpharetta/Cumming | 93.9% | -2.1% | $1,972 | -0.2% |
| Norcross | 94.5% | -2.3% | $1,513 | 1.2% |
| Duluth | 93.6% | -2.1% | $1,682 | -0.6% |
| Johns Creek/Suwanee/Buford | 93.5% | -1.8% | $1,838 | 1.5% |
| Northeast Gwinnett County | 93.6% | -2.3% | $1,731 | -0.2% |
| Southeast Gwinnett County | 94.7% | -2.3% | $1,612 | 1.1% |
| Far East Atlanta Suburbs | 94.4% | -1.6% | $1,500 | -0.7% |
| Far South Atlanta Suburbs | 93.8% | -2.7% | $1,611 | 1.6% |
| Far West Atlanta Suburbs | 92.3% | -3.8% | $1,549 | 2.1% |
| Far North Atlanta Suburbs | 93.2% | -3.4% | $1,630 | -1.6% |
Units Under Construction
Units UC Delivering In the Next 4 Quarters
| Submarket | Units Under Construction | % of Total UC | Units UC Delivering In the Next 4 Quarters |
|---|---|---|---|
| Downtown Atlanta | 1,117 | 3% | 715 |
| Midtown Atlanta | 4,870 | 13% | 2,502 |
| Northeast Atlanta | 956 | 3% | 520 |
| Southeast Atlanta | 981 | 3% | 121 |
| South Atlanta | 260 | 1% | 260 |
| West Atlanta | 3,134 | 9% | 1,261 |
| Buckhead | 541 | 1% | 482 |
| Sandy Springs | 286 | 1% | 40 |
| Dunwoody | 598 | 2% | 598 |
| Chamblee/Brookhaven | 1,938 | 5% | 706 |
| Doraville | 350 | 1% | 0 |
| Briarcliff | 601 | 2% | 389 |
| Decatur | 0 | 0% | 0 |
| Clarkston/Tucker | 0 | 0% | 0 |
| Stone Mountain | 634 | 2% | 564 |
| South DeKalb County | 476 | 1% | 476 |
| Southeast DeKalb County | 0 | 0% | 0 |
| Henry County | 2,359 | 6% | 1,645 |
| Clayton County | 0 | 0% | 0 |
| South Fulton County | 552 | 2% | 153 |
| Southwest Atlanta | 300 | 1% | 300 |
| South Cobb County/Douglasville | 1,370 | 4% | 1,218 |
| Smyrna | 277 | 1% | 92 |
| Vinings | 1,058 | 3% | 873 |
| Southeast Marietta | 0 | 0% | 0 |
| West Marietta | 0 | 0% | 0 |
| Kennesaw/Acworth | 1,254 | 3% | 708 |
| Northeast Cobb/Woodstock | 313 | 1% | 0 |
| Roswell | 128 | 0% | 128 |
| Alpharetta/Cumming | 994 | 3% | 519 |
| Norcross | 1,264 | 3% | 603 |
| Duluth | 200 | 1% | 200 |
| Johns Creek/Suwanee/Buford | 1,371 | 4% | 741 |
| Northeast Gwinnett County | 2,996 | 8% | 1,901 |
| Southeast Gwinnett County | 377 | 1% | 308 |
| Far East Atlanta Suburbs | 1,768 | 5% | 1,430 |
| Far South Atlanta Suburbs | 426 | 1% | 426 |
| Far West Atlanta Suburbs | 194 | 1% | 194 |
| Far North Atlanta Suburbs | 2,632 | 7% | 1,707 |
| Atlanta | 36,575 | 100% | 21,780 |
In the first half of 2023, the dollar volume of conventional multifamily properties in Atlanta reached approximately $1.2 billion, marking a significant year-over-year decrease of around 70%. Concurrently, the number of individual multifamily property transactions dropped by about 60%, with 34 properties changing hands. The average price per unit during this period was around $217,500, representing a roughly 5% annual decline. This figure was higher than the average for the South region but fell short of the U.S. average of $225,200.
* Trailing 4Q average PPU
* Preliminary Data from RCA – Individual conventional MF transaction $2.5M +
In May 2023, the Atlanta area showed strong job growth, adding 71,000 new positions, according to the Bureau of Labor Statistics (BLS). The overall growth rate was 2.4%, mirroring the steady growth observed in the region. Major job gains occurred across several sectors, with leisure and hospitality, and education and health services being the standout performers, adding 21,800 and 26,900 jobs respectively. These sectors grew at a rate of 7.5% and 7.0%. The financial activities sector saw substantial growth as well, adding 8,800 jobs at a growth rate of 4.5%. In May, Atlanta’s unemployment rate was 3.3%, slightly below the national average of 3.4%. The region continues to demonstrate strong economic performance, with job growth across multiple sectors and an unemployment rate that competes favorably with the national average.
May Annual Jobs Created
May 23 Employment growth
May 23 Unemployment rate
3.4% us may rate
| Sector | Change from May 2022 to May 2023 | Percent Change |
|---|---|---|
| Education and health services | 26,900 | 7.0% |
| Leisure and hospitality | 21,800 | 7.5% |
| Financial activities | 8,800 | 4.5% |
| Government | 7000 | 2.1 |
| Construction | 6,000 | 4.4% |
| Other services | 5,800 | 5.7% |
| Information | 500 | 0.4% |
| Mining and logging | 100 | 5.6% |
| Manufacturing | (900) | -0.5% |
| Trade, transportation, and utilities | (2,200) | -0.3% |
| Professional and business services | (2,800) | -0.5% |
Despite an observable deceleration trend, Atlanta remains an example of economic resilience, demonstrating a sturdy job market and steady economic growth. As we concluded the second quarter of 2023, over 21,780 apartment units are slated for delivery over the next four quarters, with 17% of these expected to contribute to the urban core. This expanding supply may present some challenges in the short term. However, such an increase is not unprecedented. It is also worth noting that despite potential market fluctuations due to increased supply, both rent growth and occupancy rates are anticipated to return to historical averages by late 2024, reflecting Atlanta’s historical resilience. As we transition into the second half of the year, the outlook for Atlanta remains cautiously optimistic. With a robust economy, active household formation, and continued in-migration, Atlanta’s economy is expected to sustain its strong performance, even amidst the anticipated surge in supply.
