average rent
average occupancy rate
ytd sales volume
YoY rent change
yoy occupancy change
ytd individual transactions
QUARTERLY DEMAND
YTD: 7,442
QUARTERLY COMPLETIONS
YTD: 15,379
After two years of fluctuating demand characterized by peaks and valleys, the Atlanta multifamily market has seen a steady reversion to the mean in recent quarters. Prospective renters occupied a net of 2,881 units, aligning closely with the traditionally robust third-quarter average of approximately 3,200 units observed over the previous two decades.
22 out of Atlanta’s 39 submarkets exhibited positive net absorption in the third quarter. The Midtown submarket spearheaded this absorption trend, with a total of 466 units being occupied, a figure nearly mirroring the 479 units introduced during the same period.
Atlanta is home to one of the most substantial pipelines of under-construction apartment units in the U.S. In the third quarter of 2023 alone, 5,529 units were brought to the market, propelling year-to-date deliveries to an unprecedented high of 15,379 units.
Throughout the year, the majority of Atlanta’s 39 submarkets have witnessed at least some influx of new supply. The densest concentration of freshly completed units can be found in Midtown Atlanta and the Far North Atlanta Suburbs.
The potential for renter demand to synchronize with the uptick in new deliveries is notably viable in a major metro like Atlanta, characterized by strong in-migration, household formation, and economic growth.
However, it’s anticipated that rent change and occupancy in Atlanta will maintain a subdued yet improved trajectory, likely aligning more closely with national norms in 2025, once operators work through filling the elevated supply in 2024.
Supply in Atlanta has not only hit record levels over the past four quarters but is also forecasted to escalate in the coming four quarters, with a projected delivery of 22,733 units.
Notably, seven Atlanta submarkets are poised to receive over 1,000 new units next year, with the Midtown Atlanta submarket set to welcome a substantial total of 2,400 units.
Average Monthly Mortgage Payment
Average Monthly Rent
* The Average mortgage payment is based off a median home sales price of $376,500 as reported by the Atlanta Association of Realtors as of August 2023.
In Q3 2023, the interplay of supply and demand continued to cast a shadow on occupancy levels in Atlanta. Specifically, a dip of 0.4 percentage points from the preceding quarter and 2.0 percentage points year-over-year was observed, anchoring the occupancy rate at 92.6%. This figure trails the five-year average rate of 94.5% by 2.4 percentage points, highlighting a deviation from the historical occupancy trends.
Dissecting the performance across different product categories, Class A units showcased a relatively better occupancy standing at 93.4%, followed closely by Class B units at 92.8%. On the flip side, Class C units bore the brunt of the declining occupancy trend, plunging by a substantial 3.9 percentage points to 91.7% annually. The occupancy narrative further unfolds with varied performance across Atlanta’s submarkets. Southeast DeKalb County bore the lowest occupancy rate at 88.8%, while Kennesaw/Acworth emerged at the helm with an occupancy rate of 94.5%.
Despite robust demand witnessed in the third quarter of 2023, Atlanta experienced a 3.6% year-over-year dip in annual rents. This was further accompanied by a slight quarterly decrease of 0.4%, a scenario primarily driven by the pace of unit completions nearly doubling the rate at which new leases were signed. This influx of supply momentarily outstripped demand, creating a softening in rental prices.
Upon delving into the performance across different product classes, it was evident that Class A units navigated through this scenario with a relatively lesser impact, recording an annual rent growth decline of 2.4%. In contrast, Classes B and C faced sharper annual reductions of 3.9% and 4.4%, respectively, indicating a more pronounced sensitivity to the supply-demand dynamics. Across Atlanta’s 39 submarkets, Doraville maintained its top position for rent growth for the second straight quarter, charting a notable 5.6% uptick. Remarkably, Doraville, along with South Atlanta, stood as the sole submarkets to register positive trajectories in rent growth during this period, although South Atlanta marked a marginal increase of 0.2%.
| Submarket | Average Occupancy | Annual Occupancy Change | Average Monthly Rent | Annual Rent Change |
|---|---|---|---|---|
| Downtown Atlanta | 92.9% | -1.1% | $1,952 | -2.6% |
| Midtown Atlanta | 93.2% | -1.6% | $2,132 | -3.7% |
| Northeast Atlanta | 91.4% | -2.4% | $1,825 | -4.1% |
| Southeast Atlanta | 92.5% | -2.3% | $1,686 | -4.3% |
| South Atlanta | 91.5% | -4.0% | $1,253 | 0.2% |
| West Atlanta | 92.0% | -2.0% | $1,858 | -3.6% |
| Buckhead | 93.1% | -1.3% | $2,063 | -3.7% |
| Sandy Springs | 92.1% | -2.4% | $1,709 | -4.5% |
| Dunwoody | 93.7% | -0.4% | $1,801 | -3.8% |
| Chamblee/Brookhaven | 94.3% | -1.1% | $1,774 | -2.7% |
| Doraville | 93.7% | -0.7% | $1,531 | 5.6% |
| Briarcliff | 93.4% | -2.0% | $1,678 | -3.5% |
| Decatur | 93.2% | -1.1% | $1,835 | -4.0% |
| Clarkston/Tucker | 93.7% | -3.2% | $1,465 | -0.1% |
| Stone Mountain | 91.5% | -2.6% | $1,303 | -5.4% |
| South DeKalb County | 90.4% | -3.8% | $1,296 | -1.6% |
| Southeast DeKalb County | 88.8% | -5.2% | $1,434 | -3.1% |
| Henry County | 90.3% | -3.4% | $1,573 | -7.1% |
| Clayton County | 90.5% | -3.2% | $1,288 | -3.8% |
| South Fulton County | 91.2% | -3.5% | $1,302 | -5.1% |
| Southwest Atlanta | 91.7% | -2.3% | $1,430 | -3.9% |
| South Cobb County/Douglasville | 92.3% | -2.2% | $1,452 | -4.5% |
| Smyrna | 92.7% | -1.9% | $1,636 | -5.2% |
| Vinings | 92.8% | -1.8% | $1,822 | -3.9% |
| Southeast Marietta | 92.4% | -1.9% | $1,531 | -4.0% |
| West Marietta | 91.9% | -3.4% | $1,410 | -6.4% |
| Kennesaw/Acworth | 94.5% | -0.8% | $1,671 | -6.9% |
| Northeast Cobb/Woodstock | 92.6% | -2.2% | $1,701 | -4.8% |
| Roswell | 91.7% | -2.2% | $1,716 | -3.6% |
| Alpharetta/Cumming | 93.5% | -1.6% | $1,963 | -2.9% |
| Norcross | 93.7% | -1.5% | $1,482 | -1.1% |
| Duluth | 93.5% | -0.8% | $1,635 | -3.9% |
| Johns Creek/Suwanee/Buford | 93.5% | -1.9% | $1,810 | -2.5% |
| Northeast Gwinnett County | 92.7% | -2.1% | $1,674 | -4.6% |
| Southeast Gwinnett County | 94.3% | -1.2% | $1,597 | -1.9% |
| Far East Atlanta Suburbs | 93.1% | -1.1% | $1,500 | -2.7% |
| Far South Atlanta Suburbs | 92.9% | -2.1% | $1,615 | -1.7% |
| Far West Atlanta Suburbs | 91.9% | -3.8% | $1,502 | -4.2% |
| Far North Atlanta Suburbs | 93.7% | -1.5% | $1,625 | -2.9% |
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 | 1,011 | 3% | 542 |
| Midtown Atlanta | 3,971 | 12% | 2,400 |
| Northeast Atlanta | 956 | 3% | 564 |
| Southeast Atlanta | 1,363 | 4% | 538 |
| South Atlanta | 109 | 0% | 109 |
| West Atlanta | 3,215 | 9% | 1,524 |
| Buckhead | 470 | 1% | 470 |
| Sandy Springs | 286 | 1% | 163 |
| Dunwoody | 598 | 2% | 598 |
| Chamblee/Brookhaven | 1,938 | 6% | 1,216 |
| Doraville | 350 | 1% | 174 |
| Briarcliff | 601 | 2% | 548 |
| Decatur | 0 | 0% | 0 |
| Clarkston/Tucker | 0 | 0% | 0 |
| Stone Mountain | 502 | 1% | 502 |
| South DeKalb County | 560 | 2% | 560 |
| Southeast DeKalb County | 260 | 1% | 57 |
| Henry County | 1,871 | 5% | 1,496 |
| Clayton County | 300 | 1% | 42 |
| South Fulton County | 847 | 2% | 390 |
| Southwest Atlanta | 150 | 0% | 150 |
| South Cobb County/Douglasville | 1,530 | 4% | 1,277 |
| Smyrna | 277 | 1% | 230 |
| Vinings | 1,452 | 4% | 950 |
| Southeast Marietta | 0 | 0% | 0 |
| West Marietta | 0 | 0% | 0 |
| Kennesaw/Acworth | 1,354 | 4% | 686 |
| Northeast Cobb/Woodstock | 313 | 1% | 133 |
| Roswell | 128 | 0% | 128 |
| Alpharetta/Cumming | 994 | 3% | 870 |
| Norcross | 603 | 2% | 369 |
| Duluth | 144 | 0% | 144 |
| Johns Creek/Suwanee/Buford | 1,019 | 3% | 673 |
| Northeast Gwinnett County | 2,282 | 7% | 1,600 |
| Southeast Gwinnett County | 210 | 1% | 210 |
| Far East Atlanta Suburbs | 1,401 | 4% | 1,315 |
| Far South Atlanta Suburbs | 324 | 1% | 324 |
| Far West Atlanta Suburbs | 185 | 1% | 185 |
| Far North Atlanta Suburbs | 2,872 | 8% | 1,596 |
| Atlanta | 34,446 | 100% | 22,733 |
In the third quarter, the Atlanta market experienced a significant year-over-year reduction in the transactional dollar volume for individual conventional multifamily properties, plummeting by about 70% to a total of approximately $1.7 billion. Concurrently, the count of single multifamily property transactions saw a stark decline of an estimated 68.9%, with a total of 51 properties changing hands. During this period, the average price per unit settled at around $219,500, marking a 2.2% annual decrement. While this pricing outpaced the average within the South region, it closely mirrored the national pricing benchmark, which was pegged at $219,700.
* Trailing 4Q average PPU
* Preliminary Data from RCA – Individual conventional MF transaction $2.5M +
In July 2023, the Atlanta area exhibited robust job growth, introducing 52,300 new positions, as per the Bureau of Labor Statistics (BLS). The region encountered an overall growth rate of 1.7%, reflecting the consistent expansion witnessed within the locale. Noteworthy employment gains were observed across diverse sectors, with education and health services, along with leisure and hospitality, emerging as the predominant contributors, adding 20,900 and 20,300 jobs, respectively. These sectors expanded at rates of 5.4% and 6.7%, respectively. The financial activities sector also experienced a significant boost, incorporating 8,600 jobs and growing at a rate of 4.3%. During July, the unemployment rate in Atlanta settled at 3.2%, marginally beneath the national average of 3.4%. Persistently, the region validates its potent economic performance, evidenced by multisectoral job growth and an unemployment rate that favorably contends with the national mean.
July Annual Jobs Created
July 23 Employment growth
July 23 Unemployment rate
3.8% US July rate
| Sector | Change from May 2022 to May 2023 | Percent Change |
|---|---|---|
| Education and health services | 20,900 | 5.4% |
| Leisure and hospitality | 20,300 | 6.7% |
| Government | 12100 | 3.7% |
| Financial activities | 8,600 | 4.3% |
| Construction | 6,600 | 4.8% |
| Other services | 6,200 | 6.0% |
| Information | 4,000 | 3.6% |
| Mining and logging | 100 | 6.6% |
| Manufacturing | (2,200) | -1.2% |
| Trade, transportation, and utilities | (3,500) | -0.5% |
| Professional and business services | (20,800) | -3.5% |
Atlanta, GA, presents an appealing cost-of-living index of 97.3, indicating a level of affordability when juxtaposed against the national average. The housing market further echoes this budget-friendly narrative with a housing index of 96.0 and a median home sales price of $376,500. A comparative lens with Miami, FL, underscores Atlanta’s economic allure; it unveils a significant 32.7% reduction in housing costs and a 20.1% decrease in utility expenses. Additionally, Atlanta residents enjoy a 12.5% savings on groceries and a 4.6% reduction in transportation costs. However, it’s worth noting a 15.5% escalation in healthcare costs when compared to Miami. Despite this, the economic advantages across multiple essential living categories reinforce Atlanta’s position as an attractive domicile choice for northeast transplants.
97.3
$2,851
96.0
81.2
99.3
$376,500
The “Cost of Living” index score provides a comparative assessment of the relative expense involved in maintaining a standard of living in a specific area, benchmarked against a national index score of 100.
Source: COLI; BLS; Consumer Price Index for All Urban Consumers (CPI-U): Selected areas, all items index, July 2023
Despite the noticeable slowdown, Atlanta continues to display economic resilience, supported by a solid job market and steady economic progress. As the third quarter of 2023 wraps up, over 22,730 apartment units are slated for delivery in the following four quarters, with a significant addition of 2,400 units anticipated in the urban core. Although this increased supply may present short-term challenges, despite the demand rebound observed throughout 2023, the ability of apartment absorption to match the notable supply influx remains to be seen. Looking ahead, a subdued, yet improved stance is expected for rent alterations and occupancy rates in Atlanta, with a likely realignment towards national averages by 2025, once the current supply wave moderates. Backed by a stable economy, active household formation, and continued in-migration, Atlanta’s economy is projected to maintain its steady performance, even in the face of an anticipated supply surge.
