Is Atlanta "Right" for Real Estate Investing?
The short answer to this question is yes. The longer answer is: yes, definitely, especially if you’re buying in the right Atlanta neighborhoods.
When it comes to thriving metropolitan areas with relatively reasonable home prices, Atlanta is a serious contender.
Boasting a strong economy, tree-lined neighborhoods, vibrant culture and urban walkability, Georgia’s state capital is a place where newcomers put down stakes and locals never leave.
When looking at Atlanta through a real estate lens, the numbers come up big. It’s a city with an incredible amount of upside.
Below are some key reasons Atlanta is a great place to invest in a rental property.
The downtown population has risen roughly 2% a year per year since 2010. While Atlanta home prices rose roughly 10% between 2016 and 2017, they are expected to go up nearly that much in 2020.
Overall, the Atlanta housing market trend is much hotter than the rest of the nation. Atlanta was ranked at #11 in the U.S. Markets to Watch by PWC.com. Cities like Atlanta & Dallas are benefiting from fundamental demographic and economic shifts. It is one of emerging markets in South’s Atlantic region.
All 11 markets including Atlanta that make up the region are ranked in the good potential for investment and development. Opportunities are expected to be readily available in these markets.
The continuing attractiveness of primary markets like Atlanta makes a lot of sense to buy investment properties. Atlanta has experienced net migration over the last five years. In Atlanta rents have recovered and grown – The high construction costs contribute to the upward pressure on rents.
Atlanta Investment Property Forecast 2020
What are the Atlanta real estate market predictions for 2020? According to Zillow.com, the Atlanta housing market is currently a buyer’s market. The median home value in Atlanta is $264,500. Atlanta home values have risen by 4.8% over the past year and their Atlanta real estate market forecast is that the prices will continue to rise by 6.6% within the next year.
Here is the Atlanta real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 6.6% till Oct 2020.
Atlanta Real Estate Market Forecast
Graph Credits: Zillow.com
The median list price per square foot in Atlanta is $234, which is higher than the Atlanta-Sandy Springs-Roswell Metro average of $132. The median price of homes currently for sale in Atlanta is $320,000 while the median price of homes that have been sold is $241,800.
Zillow reports that 22.7% of the listings in Atlanta had a price cut in Oct 2019, which is a good thing for buyers. It shows sellers were willing to negotiate on prices as they were finding it more and more difficult to sell homes at asking prices.
The median rent price in Atlanta is $1,742, which is higher than the Atlanta-Sandy Springs-Roswell Metro median of $1,500.
Investment Property For Sale In Atlanta
Atlanta, GA is one of the top markets for single family rental homes in the US. Many young families and couples thinking about the future are interested in renting such a property. Therefore, the demand for single family homes for rent in Atlanta is high.
Another research regarding Atlanta’s population and demographics reveals that 49% of the population in the city lives in family households with kids. In comparison, 38% of the people are living alone. People who inhabit family households are more likely to rent single family homes rather than apartments because they offer more space and privacy.
Currently, there are 1,962 single family homes for sale in Atlanta, GA on Zillow. Additionally, there are 566 single family homes for rent in Atlanta, GA.
Under potential listings, there are about 19 Foreclosed and 363 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
If you are looking for turnkey real estate investment, Norada Real Estate Investments can save you time by finding you the best investment properties in Atlanta.
We can provide you newly rehabbed properties with screened tenants in place. Properties starting at $70,000, providing up to $750/mo cash flow and 3-year appreciation forecast of 9.3%.
Best Places To Buy Atlanta Investment Properties in 2020
If you are dreaming of owning a investment property, what better place to do that than in Atlanta, GA? The city has a thriving real estate market that promises lucrative returns. Atlanta suburbs offer a diversified population in which a newcomer can easily fit.
Most of the Atlanta investment properties in the suburb areas are single family rental homes. Now the question is, where to buy investment properties in Atlanta? If you looking to invest in Atlanta, here are the 10 best places to buy Atlanta investment properties in 2020.
1. Hanover West, Atlanta
Hanover West is a small, legacy development built in the 1960s. It offers a number of amenities that attract residents of all ages. Niche ranked this one of the best places to buy a house in Atlanta, but they rarely come on the market.
This allows landlords to charge a median rent of $1100 per month. The average home value here is higher than the national average and well above the average for Atlanta, forcing many who want to live here to rent.
2. Midtown Atlanta, Downtown Atlanta
Downtown adjacent areas like Midtown and Buckhead have seen prices rise substantially. If you can buy an investment property in Midtown Atlanta, you can rent it out for top dollar.
These Atlanta investment properties will be valued for their space and privacy in an area quickly converting to multi-family housing. Median rent here is about $1800 per month. Properties close to Georgia Tech profit from the steady stream of renters.
3. Buckhead, Atlanta
Buckhead is a great place to buy Atlanta investment properties. The homes are worth a lot because of their proximity to downtown. Then there’s the fact that it is full of mansions and estate homes, though there are a few small cottages that can be rented out as starter homes.
Or you could buy an old bungalow and replace it with the four to six bedroom executive homes becoming the norm for this area.
The urban neighborhood of Buckhead Heights has a population of roughly 2,130 people. Residents have been ranked as A, based on ethnic and economic diversity, with many of its residents having bachelor’s or master’s degrees.
4. Gwinnett County, Georgia
This area is in such demand that time on market fell 20% in 2018. Median home prices rose 5% here year over year. Part of this is because Gwinnett schools are so good. Buford in Gwinnett County had the best public schools in the state.
5. Grant Park, Atlanta
Grand Park is the oldest city park in Atlanta, and the same name applies to the residential district around it. This area is close to downtown, but it is full of older single family homes that command high rents for the privilege of living here.
You’ll receive significant cash flow from investment properties in the Grant Park, Atlanta, if you can buy low, since median rent in 2019 was $1300 a month.
6. Decatur, Northeast of Atlanta
Decatur was ranked one of the best suburbs in Georgia by Niche.com. Decatur is a city in Georgia, northeast of Atlanta. Even better, they were ranked 32nd on Niche’s best places to live in America list in 2017.
It was also named one of the best suburbs for millennials in 2016. Buying investment properties in the suburbs of northeast of Atlanta can be a great investment step for 2020.
7. Alpharetta, North of Atlanta
Alpharetta is an attractive real estate market to home buyers and renters, and that makes it a good place for real estate investors. It is a suburb north of Atlanta.
The real estate market is a mix of condos and detached single family home. Alpharetta had numerous schools rank 10 out of 10 at Greatschools.org.
8. Peachtree Heights West, Atlanta
Peachtree Heights West is located in southwest Atlanta. This upscale neighborhood has been ranked one of the hottest in the city due to increasing sales and rental activity. It is great place to buy an investment property in Atlanta especially an apartment for rental income.
It is a short distance south of the already overpriced Buckhead Forest. This area is a great place for investing in Atlanta investment properties, since median rents are well above average at more than $1700 per month.
9. Ormewood Park/Glenwood Park, Atlanta
Ormewood Park/Glenwood Park is located between Grant Park and East Atlanta Village. This area is dotted with 1920s Craftsman style homes. Redevelopment in the area is replacing affordable single family homes with multi-family housing and upscale homes.
Many move here to be close to its top notch charter schools. That’s part of the reason why median rents were a little below $2000 in Ormewood Park.
10. Old Fourth Ward, Atlanta
Old Fourth Ward is a historic industrial district that was, at one point, nearly abandoned. It is being revitalized into a hip neighborhood commanding rents of around $1700.
There are significant opportunities for real estate investors to buy investment properties in Old Fourth Ward, Atlanta, since there are still properties in the area that need to be renovated to be attractive to renters.
Should You Buy Atlanta Investment Properties: The Conclusion
It is obvious by now that Atlanta real estate market is very strong. This leaves some worrying if it is a bubble that’s going to pop. The answer to that is no. The metro Atlanta area has seen stellar growth second only to Houston real estate market.
Demand has caused home values to rise around ten percent a year for the last few years. Housing prices in Atlanta dipped in 2017, allowing prices to adjust.
Average home prices today are similar to where they were at the 2006 peak, but they’re actually more affordable when you take inflation into account.
You should consider buying an investment property in Atlanta, if you want to diversify your holdings beyond stocks and bonds. Remember, choosing the right property, maintaining it, dealing with tenants—all that takes work.
A rental property could be turnkey and rent ready or with the 'right' contractor you could add equity by buying a fixer upper.
The property must be in growth markets and must produce a positive cash-flow.
That being said, Atlanta appears to be a wise choice of city for the youth. In many of the above mentioned neighborhoods, their residents seem to be young adults, based on their educational attainment. Likewise, Atlanta has come to be a bustling economic center.
When looking for the best real estate investments in Atlanta, you should focus on neighborhoods with relatively high population density and employment growth. We’ve already listed above some of the best neighborhoods to buy Atlanta investment properties.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Atlanta, GA.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.