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New tonight, 8:11. There is finally good news for renters in Metro Atlanta. After rates soared the past few years, they're slowly, slowly coming down. In our new series, "Affording Atlanta," Jonathan Martin explains how new construction across the city is playing a part.
If it seems new apartment buildings are popping up all over Metro Atlanta lately, it's because they are. In the pipeline, there are 190,000 new units that are in some form of construction. The supply of units is now outpacing demand, according to apartment data tracker A N, and that is really good news for renters because competition creates affordability.
In 2020, the average rent for a one-bedroom in Metro Atlanta was just over $1,200. Two years later, it spiked to more than $1,600. New data shows in 2024 the market rate has dropped slightly, but renters are saving even more as apartment communities and landlords are offering other big concessions. We haven't seen prices like this in several years.
Oleg Kosky runs Promo, the company that connects renters with apartment communities in Metro Atlanta. He says because there's so much competition, many communities are offering anywhere from 1 to 3 months of free rent to increase occupancy. "You can prorate and average out the rent and really lower your payment by a good amount," he said. With tenants having a bit of an upper hand, he says it's the perfect time to shop around to find the best deals and amenities.
"When I moved here to Atlanta, I was surprised by how many options there were," Bill Whitmore said. Bill moved to Atlanta in January. He shopped around and decided to rent in the Old Fourth Ward as location was most important for him. "I knew I was going to pay more in rent here in the Old Fourth Ward, but the environment and the atmosphere of the area are what sold me."
While the cost to rent in Atlanta is still high for so many, the downward trend offers a bit of relief. With a lot more construction in the works, some experts predict prices could level even more as competition increases in Atlanta.
Jonathan Martin, 11 Alive News. Another expert we spoke with says as the demand for buying homes starts going up, it will take away demand from the rental market, which could also help push rent prices down. Coming up on Tuesday in our "Affording Atlanta" series, Jonathan will show us some of the most affordable zip codes right now to buy a house.
Should renters in the Metro Atlanta area expect reduced rental prices in 2024?
Rents in the metro Atlanta area have been spiking in the recent past. In 2020, the average rate to rent a 1-bedroom apartment in the area was $1,267.
Two years later, it had spiked by almost $400 to reach $1,622.
Fortunately, things are getting better in 2024. In April, 2024, the rental price had fallen slightly to $1,607, signaling decreasing market rates. For comparison, the national average rent price in the U.S. is currently $1,517 per month.
Now, several factors are contributing to reduced rental prices in the Metro Atlanta area. They include the following.
#1: Increased construction of apartments.
Currently, there is a construction boom in the Metro Atlanta area. This is a response to the high demand for housing that aims to address the shortage of available rental units. In urban areas, developers are focused on large-scale projects with high population density.
#2: Concessions to attract renters.
Landlords in the Metro Atlanta area are also offering renters concessions to rent in the area. The concessions include free rent for a few months, and waived application fees.
According to a study by RealPage, a property management software company, concessions played a key role in attracting renters. This was especially true in areas where there was a surplus of rental units. The study found that concessions in the Metro Atlanta area increased rental demand by up to 20 percent, especially in areas experiencing a surge in new apartment completions.
#3: More options for renters.
As already mentioned, there was a large number of new apartment units earmarked for 2024 (approximately 190,000). With the surge in new construction, as well as the incentives offered, renters can expect more options and negotiating power.
As such, renters who are looking to move or those renewing their leases can expect favorable terms. A study by the Urban Institute’s Housing Finance Policy Center in 2023 found that renters residing in areas with new construction projects had better opportunities to negotiate for better rents.
#4: Stabilization of rental prices.
With the expected influx of new rentals in the Metro Atlanta rental market, prices are expected to stabilize. Furthermore, with more people expected to become homebuyers, this will inarguably lead to a reduction in rental demand.
Conclusion
Currently, the dynamics at play in the Metro Atlanta rental market favor reduced rental prices at least in the short term. If you are a renter, you can take advantage of the situation by asking for favorable rental prices and additional benefits.
Disclosure: The content herein isn’t a substitute for advice from a professional attorney. It’s only meant to serve educational purposes. If you have a specific question, kindly seek expert attorney services.
Sources: GA Code Title 44 Chapter 7, 11 Alive
Last Updated on May 27, 2024 by Kelvin Nielsen
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Hi, I’m Kelvin Nielsen, an experienced landlord and accomplished real estate lawyer. My focus is on answering your questions about renting in the hopes of making your life as a renter or a landlord a bit easier.