Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting to read:%0A%0A {0} %0A%0A {1}

Atlanta Multifamily Performance Holds Strong as Conditions Cool

The Atlanta multifamily market remains healthy and demonstrates continued demand of national investors. While growth nationally has begun to taper, Atlanta still posted $8.1 billion in sales volume in 2019 and greatly surpassed investment expectations at this point in the cycle.

Investor attraction continues to grow in Atlanta’s evolving suburban submarkets, with CoStar reporting nearly 44% of transactions in 2019 occurring outside of the market’s urban core. Private capital accounted for a majority of Atlanta’s buyer pool in fourth quarter 2019; however, foreign investors grew its share in the Atlanta multifamily space at a rate that is 17% faster than fourth quarter 2018 trends.

Pricing expectations in Atlanta continue to climb higher as the Atlanta multifamily market grows in national attraction. The average price per unit in Atlanta increased 17.0% in 2019—keeping on trend with four consecutive years of appreciation—with 32% growth in the Class C space driving gains.

464 Bishop Atlanta

464 Bishop in Atlanta sold in the fourth quarter of 2019 for $54.25 million

The market’s high-performing rent growth trends have driven pricing as the average effective rent in Atlanta grew at a rate of 5.8% year over year as of fourth quarter 2019, inching towards the $1,300 threshold. A heavy infusion of high-end deliveries into Atlanta’s in-town submarkets has largely fueled rent gains over the last few years. Although construction is projected to slow down from the market’s peak in 2017, the ongoing stabilization of Class A assets will continue to buoy overall rent growth once lease up concessions burn off.

Looking ahead, rents in the metro are projected to increase by 18.6% from 2019 to 2024 or 3.7% annually, beating national projections. With forecasts predicting Atlanta will need 61,111 new units by 2023 to support future market demand, supply pressure will give rents more room to run going forward.

Eastside Atlanta is Atlanta’s fourth busiest submarket in terms of its development pipeline, with CoStar recording nearly 1,500 units currently under construction across institutional and infill developments as of fourth quarter 2019. Rental rates soared across the submarket, growing by 20.2% over the last five years and reaching the third-highest average effective rental rate of Atlanta’s submarkets at $1,665. With approximately 1,200 renter households projected to be added in the submarket by 2024, Eastside Atlanta will continue to lap the rest of the market in terms of overall multifamily performance.

For more, check out the infographic below. 

Atlanta Multifamily Q4

Related Insights

5-Fast-Facts_GWS-Graphics3 - Card Image
Article • Office

Five Fast Office Facts South Florida

What You Need to Know in Today's South Florida CRE Office Market
Chris Owen • 1/15/2022
Article • Office

Five Fast Office Facts Jacksonville

What You Need to Know in Today's Jacksonville Commercial Real Estate (CRE) Office Market.
Chris Owen • 1/13/2022
Insights • Office

DALLAS Office Fast Facts

For the first time since 2019, office occupancy grew in Q4 2021.
Nicolas Belusic • 1/13/2022

Ready to talk?

Get in touch and we can help with any additional information you need.

Cushman & Wakefield uses cookies to analyze traffic and offer our customers the best experience on this website. Close this dialog to confirm your consent, or visit this page to learn more:
Cookie Notice

Agree and Close
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.