Atlanta real estate investors get ready for yet another hot year!
A successful real estate investing career requires buying an investment property in a successful housing market. Over the years, Atlanta real estate has consistently ranked among the top 20 housing markets in the country to invest in, and according to Forbes, 2018 is no exception. In this article, we break down the reasons why property investors should go ahead and buy an Atlanta investment property this year and we also explore the best neighborhoods in Atlanta that property investors should keep in mind. So, with no further do, let’s dive right in!
Why Invest in Atlanta Real Estate?
Atlanta Housing Market
As Georgia’s capital, Atlanta is one of the top 10 largest metro areas in the United States. Over the past decade, the Atlanta housing market has seen a constant growth – Atlanta metro area is home to over 5.5 million residents with a projected population growth to reach 7.3 million by the year 2020 (according to the US Census Bureau) making it the 6th most populated metro area.
Thanks to its great neighborhoods, school systems, good infrastructure, and others, families from all over the Midwest as well as the southern United States are relocating to Atlanta. Furthermore, Atlanta’s real estate market has also been attracting Millennials – who prefer renting over buying. As a result of this population growth, Atlanta real estate is a great place to invest in rental properties, especially single-family and multi-family homes for sale.
Strong Economy
Another sign for property investors to start planning on buying an Atlanta real estate investment property is the city’s economy. Georgia’s capital is not only home to the world’s most traveled airport, Atlanta is also 8th in the country for GDP. This growing economy plays a valuable role in the US economy and presents a thriving place for businesses including Fortune 500 Headquarters. Moreover, major corporations are also shifting base and opening new branches in Atlanta, including Google and eBay, bringing more than 3,500 jobs to Metro Atlanta.
Consequently, this is definitely a promising sign for property investors looking to buy rental properties in Atlanta in 2018. The annual growth rate in Metro Atlanta is 2.85% which is relatively greater compared to the current national average of 2.35%. This growing economy and job market come with qualified employees looking for new job opportunities. Thus, the Atlanta real estate market is one of the best in the country not only for residential rental properties but also commercial properties.
Related: How to Make Money from Commercial Real Estate for Rent
Atlanta Home Values
If there is one thing property investors should know about Atlanta real estate, it would be this: prices are going up! Based on data provided by Mashvisor’s Investment Property Calculator, the current median home value in Atlanta, GA is $387,593. According to Zillow, this is an increase of 12.4% of Atlanta real estate home values in the last year alone! In addition, most real estate experts and economists suggest this growth will rise 7.5% within the next year.
According to a report published on Hotpads.com, Atlanta real estate market’s rents are also quickly on the rise. This is mainly due to the increased population and low inventory. In fact, the median rent price in Atlanta is $1,842 for a traditional investment property and $731 for an Airbnb investment property. These numbers are a sign of potential great cash flow, which is another reason why property investors should keep Atlanta real estate in mind when thinking of where to buy rental properties.
To start looking for and analyzing the best rental properties in your city and neighborhood of choice, click here.
Airbnb Atlanta
Atlanta real estate is not only a hot market for traditional long-term real estate investing, but also for Airbnb short-term real estate investing! Why so? Well, Atlanta is the birthplace of the Dogwood Festival and The Atlanta Film Festival, both of which draw in a large number of visitors every year. With Airbnb gaining more and more popularity, most tourists and travelers opt for staying in an Airbnb rental over a hotel suite – which is obviously good news for Airbnb property investors in the Atlanta real estate market.
Furthermore, Airbnb’s most popular listing is a treehouse in Atlanta, GA! Didn’t see that one coming, did you? But it’s true – the Secluded Intown Treehouse has more than 300,000 site visits per month, and 147,052 people have saved it to their Airbnb wish lists, making it the most desired listing on the site. This gives Airbnb Atlanta real estate even more attention and increases the number of tourists into the city. Thus, Atlanta real estate is among the best locations for an Airbnb investment property.
Related: Real Estate Investing: Traditional vs. Airbnb Investments
A Quick Summary of Atlanta Real Estate Market
The Best Neighborhoods to Buy Property in Atlanta Real Estate Market
Atlanta Real Estate – Midtown
- Median Property Price: $342,500
- Traditional Rental Income: $2,040
- Airbnb Rental Income: $2,146
- Traditional Cash on Cash Return: 2.28%
- Airbnb Cash on Cash Return: 2.6%
- Traditional Cap Rate: 2.28%
- Airbnb Cap Rate: 2.6%
- Occupancy Rate: 42.20%
Atlanta Real Estate – Peachtree Hills
- Median Property Price: $585,000
- Traditional Rental Income: $2,406
- Airbnb Rental Income: $2,698
- Traditional Cash on Cash Return: 1.86%
- Airbnb Cash on Cash Return: 1.94%
- Traditional Cap Rate: 1.86%
- Airbnb Cap Rate: 1.94%
- Occupancy Rate: 38.92%
Atlanta Real Estate – Atkins Park
- Median Property Price: $575,000
- Traditional Rental Income: $2,029
- Airbnb Rental Income: $1,892
- Traditional Cash on Cash Return: 1.6%
- Airbnb Cash on Cash Return: 1.85%
- Traditional Cap Rate: 1.6%
- Airbnb Cap Rate: 1.85%
- Occupancy Rate: 43.09%
Atlanta Real Estate – Lindbergh
- Median Property Price: $400,000
- Traditional Rental Income: $1,965
- Airbnb Rental Income: $1,408
- Traditional Cash on Cash Return: 2.61%
- Airbnb Cash on Cash Return: 1.72%
- Traditional Cap Rate: 2.61%
- Airbnb Cap Rate: 1.72%
- Occupancy Rate: 38.19%
Atlanta Real Estate – Peachtree Park
- Median Property Price: $662,500
- Traditional Rental Income: $3,077
- Airbnb Rental Income: $1,455
- Traditional Cash on Cash Return: 1.84%
- Airbnb Cash on Cash Return: 0.03%
- Traditional Cap Rate: 1.84%
- Airbnb Cap Rate: 0.03%
- Occupancy Rate: 37.29%
Atlanta Real Estate – Ansley Park
- Median Property Price: $1,062,500
- Traditional Rental Income: $3,588
- Airbnb Rental Income: $1,718
- Traditional Cash on Cash Return: 1.31%
- Airbnb Cash on Cash Return: 0.14%
- Traditional Cap Rate: 1.31%
- Airbnb Cap Rate: 0.14%
- Occupancy Rate: 37.44%
Atlanta Real Estate – Piedmont Heights
- Median Property Price: $650,000
- Traditional Rental Income: $2,289
- Airbnb Rental Income: $2,060
- Traditional Cash on Cash Return: 0.97%
- Airbnb Cash on Cash Return: 0.46%
- Traditional Cap Rate: 0.97%
- Airbnb Cap Rate: 0.46%
- Occupancy Rate: 40.43%
Click here to find and analyze the best rental properties in Atlanta real estate right now!
The Bottom Line
To guarantee a successful real estate investing career, the first thing to keep in mind is the location of the investment property. Whether you’re a beginner real estate investor looking for your first investment property, or an experienced real estate investor searching for another rental property to grow your investment portfolio, Atlanta real estate market should definitely be on your list of places to look into.
Sign up for Mashvisor to start your property search in the best locations across the US real estate market! Make use of our Airbnb calculator as well as investment property finder tool to help you find and analyze different rental properties and buy the best one in the city and neighborhood of your choosing.
To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today and enjoy 15% off for life.