Atlanta is one of America’s hottest cities and has been for quite some time. Not just in terms of temperature, as the Georgia heat is famed, but in terms of real estate and economic prospects.
Known for its delicious food, local culture, and hip nightlife, Atlanta has also become a powerhouse of industry, and a booming real estate market. For years, Atlanta has been a growing real estate market with a housing market with rapidly increasing values. While 2020 has been a year of uncertainty, and COVID has thrown a lot into flux, the outlook for the future of Atlanta and its real estate market remains bright.
Nearly 285,000 people moved to Georgia in 2019, many of them to Atlanta.
Georgia is an area that has experienced a large economic boom. While most famously, Coca-Cola is headquartered in Atlanta, many other huge corporations operate within the city and state. According to a Norada Real Estate Report, 9 out of the top 10 Fortune 500 companies have operations in Georgia, with 18 of the 500 have made their world headquarters within the state.
Atlanta is Georgia’s biggest and most powerful city, and as the economic center of Georgia, they reap a lot of the benefit that comes from hosting many of the world’s biggest companies.
Partially due to the economic success of the city, real estate prices in Atlanta have appreciated massively over the past decade. According to the same Norada report, from 2012 to 2020, the median home price in Atlanta has skyrocketed nearly 117% from $138,00 to $299,841.
This has corresponded with a population surge in Georgia. Nearly 285,000 people moved to Georgia in 2019, many of them to Atlanta. This helps drive up the price of real estate, as there is a huge increase in demand.
For such a big city with a lot of economic opportunities, housing in Atlanta is still relatively affordable. A median home price just under $300,000 is quaint compared to some of the other big cities in America like New York City or San Francisco.
The pandemic has played a role in driving up the prices of homes in Atlanta, by decreasing the supply. According to a different report by Norada, in October of 2020, there were 6,051 total home sales in Atlanta, which was down 3% compared to October of 2019. But the median price was up to $315,000, which was a massive 19.8% uptick compared to October of 2019.
While these figures are interesting, the real reason for the decrease of houses on the market comes from the earlier months of the pandemic. For example, in May 2020, there were 4,085 residential sales. This was a decrease of 36.8% compared to May 2019.
This is a substantial difference that has a lasting impact on the housing supply of a city. With a decrease in the supply comes an increase in the competition if demand remains high, which it has. This competition is a substantial part of what drives housing prices higher.
Projections posit that the climb Atlanta’s real estate market has experienced will be continued. The market in Atlanta has been on a steady climb since 2012, and there is no reason that it would stop.
With a lot of economic opportunities that helps fuel a growing population, as well as increased competition for housing stemming from a pandemic – induced shortage in listings, it is bankable that 2021 will continue to fuel a rise in prices in Atlanta. This makes it an intriguing investment for now and the future, as Atlanta is a city that promises to continue its growth.