Atlanta Overview
Atlanta is the capital of the State of Georgia and one of the top ten city-level economies in the nation, with impact on global technology, finance, commerce, research, education, media, and entertainment.
With a population of nearly half a million, Atlanta is the largest city in Atlanta and the 37th in the US. The city comprises the economic and cultural center of the Atlanta metropolitan area. With a population of 5.9 million residents, this is the 9th most populous metro area in the US. Atlanta has a diverse population which grows at one of the fastest rates nationwide.
One of the main drivers behind the emergence of the city and its initial rapid economic growth was the major state-sponsored railroad. As a result, Atlanta quickly became an important transportation hub. Later on, this reputation was enhanced by the fact that Atlanta is home to the world’s busiest airport in terms of passenger traffic – Hartsfield-Jackson Atlanta International Airport.
Atlanta enjoys a diverse economy which is one of the most important indicators for stable real estate investing. The main industries comprise of professional, scientific, & technical services, retail trade, transportation & logistics, finance & insurance, manufacturing, aerospace, medical services, and media operations. Among US cities, Atlanta has the 3rd highest concentration of Fortune 500 companies. Moreover, it is home to the global headquarters of The Coca-Cola Company, Delta Air Lines, UPS, AT&T Mobility, and The Home Depot.
The average annual per capita income in Atlanta is $35,719, which is 25% higher than the nationwide average level. Meanwhile, the Atlanta median annual household income of $46,439 is below the US-wide value of $53,482. Nearly 60% of Atlanta’s population rents rather than owns a home, which translates into a large and diverse tenant pool of about 300,000 people. For real estate investors, this means strong demand for long-term Atlanta rental properties.
Atlanta is one of the most visited cities in the whole US, hosting over 53 million domestic and international visitors per year. The main tourist attractions include the Atlanta Aquarium, the Atlanta Botanical Garden, Zoo Atlanta, Centennial Olympic Park, Martin Luther King, Jr. National Historical Park, Fox Theatre, CNN Center, and World of Coca-Cola. The importance of the tourist sector in the city’s economy creates endless opportunities for Airbnb Atlanta investment opportunities.
Atlanta Real Estate Market Overview
- Median Property Price: $430,100
- Price per Square Foot: $241
- Real Estate Appreciation: 67% since 2000 (significantly above the Georgia average and close to the US nationwide average)
- Days on Market: 69
- Listings for Sale: 6,317
- Price to Rent Ratio: 17 (moderate)
- Buyer’s Market or Seller’s Market: Moving towards a buyer’s market
- Renters’ Percent of Population: 60%
The Atlanta real estate market remains one of the top major cities to invest in 2019, as proven by the fact that PWC’s annual Emerging Trends in Real Estate: United States and Canada 2019 report ranked it as the #11 US Market to Watch for overall real estate prospects. Moreover, Atlanta was selected as the #6 most important market in the South region. The Atlanta housing market boasts a continuing attractiveness as a primary market. The strong net migration over the last few years, the high percentage of young residents, and the above-average labor force participation rate constitute the main factors behind the strongly positive Atlanta housing market trends and investor confidence.
Atlanta house prices are about double the national median level, but they are still significantly more affordable than prices in other best real estate markets, with a median value of $429,800. This means that property investors with different budgets can find lucrative homes for sale in Atlanta, GA to invest in, with the right financing method. Natural real estate appreciation has been relatively high for Atlanta investment properties, with an average annual rate of 2.7% since 2000. According to Atlanta real estate experts, the Atlanta housing market has been shifting away from a seller’s market and towards a buyer’s market since late 2018. However, enough appreciation is still expected to keep real estate investors coming to A-Town. This movement in the local real estate market is a positive signal for investors as it means that they will be able to find lucrative deals among houses for sale in Atlanta without having to enter into bidding wars. The moderate price to rent ratio signifies strong demand for traditional Atlanta rental properties and high return on investment for Atlanta landlords.
Best Property Types for Investing in the Atlanta Residential Real Estate Market
- Single Family Homes for Sale in Atlanta, GA: 3,521 listings
- Median Property Price: $430,000
- Price per Square Foot: $223
- Average Monthly Traditional Rental Income: $2,090
- Average Traditional Cap Rate: 2.6%
- Average Monthly Airbnb Rental Income: $2,460
- Average Airbnb Cap Rate: 3.5%
- Condos for Sale in Atlanta, GA: 1,858 listings
- Median Property Price: $403,900
- Price per Square Foot: $285
- Average Monthly Traditional Rental Income: $1,940
- Average Traditional Cap Rate: 1.4%
- Average Monthly Airbnb Rental Income: $2,110
- Average Airbnb Cap Rate: 1.1%
- Townhouses for Sale in Atlanta, GA: 69 listings
- Median Property Price: $481,900
- Price per Square Foot: $223
- Average Monthly Traditional Rental Income: $2,350
- Average Traditional Cap Rate: 1.9%
- Average Monthly Airbnb Rental Income: $2,550
- Average Airbnb Cap Rate: 2.5%
- Multi Family Homes for Sale in Atlanta, GA: 53 listings
- Median Property Price: $505,700
- Price per Square Foot: $189
- Average Monthly Traditional Rental Income: $2,230
- Average Traditional Cap Rate: 2.4%
- Average Monthly Airbnb Rental Income: N/A
- Average Airbnb Cap Rate: N/A
Similar to other major housing markets, the predominant property type in the Atlanta real estate market 2019 is single family properties. At the moment, 56% of all listings in the Georgia capital are single family homes, followed by condos (29% of the total) and townhomes (14%). Multi family homes for sale in Atlanta make up only about 0.5% of all listings.
Why Investing in Single Family Homes in Atlanta
Atlanta real estate market analysis shows that single family homes are by far the best property type for Atlanta real estate investments in 2019. First of all, the median price for single family homes for sale in Atlanta is the same as the overall Atlanta house price level. Moreover, single family properties constitute the largest number of properties for sale, which means that an Atlanta real estate investor will have over 3,500 listings to choose from to buy an investment property which matches his/her budget, other requirements, preferences, and expected return on investment. However, most importantly, single family homes are the most profitable real estate investment strategy in the Atlanta housing market. Whether you go for a traditional or Airbnb Atlanta rental property, you will achieve the highest return on investment in terms of cap rate with a single family property.
Why Investing in Condos in Atlanta
In Q3 2019 the Atlanta real estate market also offers a good number of condos for sale, which means that property investors interested in this type of property can find a good deal. Indeed, the median price for condos for sale in Atlanta, GA is 6% below the city level, but this type of properties are more expensive per square foot due to the additional amenities. Condos can make for a good and profitable Atlanta rental property as the HOA will take care of many of the issues which would otherwise be the responsibility of the landlord. While this makes condos a more passive real estate investment strategy, investors should check the regulations of the specific HOA in order to make sure that short-term and long-term rentals are allowed.
Why Investing in Townhouses in Atlanta
There are over 800 townhouses for sale in Atlanta. While they are 12% more expensive on average than a median Atlanta home for sale, the price per square foot is actually lower. This means that a real estate investor can buy a bigger investment property with the same budget, which can be rented out at a higher rent. Townhouses are the second most profitable Atlanta investment property type when rented out on short-term basis and the third when rented out on long-term basis.
Why Investing in Multi Family Homes in Atlanta
As in other real estate markets, multi family homes for sale in Atlanta are the cheapest per square foot. However, as expected, their price is above the median level in the best city in Georgia for buying a rental property. This property type is very profitable as the average cap rate for traditional Atlanta rental properties is almost as high as for single family homes.
Why Investing in Foreclosed Homes in Atlanta
Beginner Atlanta real estate investors and other investors on a limited budget can consider investing in foreclosed home for sale in Atlanta. This is one of the best ways to buy an investment property below market value, which you can then rent at market rate, after some quick repairs and fixes. Foreclosure in Atlanta offer an easy opportunity for positive cash flow investments at affordable prices. In specific, Atlanta foreclosures offer a 4.7% cap rate when rented out on long-term basis and a 5.8% cap rate when rented out on short-term basis.
Important Stats for Atlanta Real Estate Investors
Safety
- Crime Rate Index: 3 (100 is highest)
Atlanta is safer than only 3% of US cities, with a really high overall crime rate of 61 crimes per 1,000 residents.
Access
- Walk Score: 49
- Transit Score: 47
- Bike Score: 41
Atlanta, GA is the 21st most walkable large US city. While A-Town has some public transportation, it does not feature many bike lanes. Overall, Atlanta is a rather car-dependent city.
Affordability
- Cost of Living Index (Excluding Rent): 72
- Rent Index: 46
- Cost of Living Plus Rent Index: 60
Atlanta is an expensive city as consumer good prices excluding accommodation are only 28% cheaper than in New York City. However, rent is 54% less expensive than in NYC. Overall, the cost of living plus rent index in Atlanta is 40% below the level in New York City.
Property Tax Rates
- Atlanta Millage Rate: 42.361
- City of Atlanta Millage Rate: 8.89
- Atlanta Public Schools Millage Rate: 21.64
- Fulton County Millage Rate: 11.781
- State of Georgia Millage Rate: 0.05
- Georgia Property Tax Rate: 0.93%
The State of Georgia boasts relatively low property tax rate at 0.93%. In Atlanta property tax is paid on the assessed value of the real estate property, which amounts to 40% of the fair market value. Any applicable exemptions are deducted from the assessed value, after which the difference is multiplied by the millage rate. Overall, Atlanta real estate taxes are not high compared to the nationwide level.
If you’d like to invest in states with no property tax, check out Hawaii, Alabama, Louisiana, West Virginia, and Wyoming.
Atlanta Real Estate Market: Traditional Rentals
- Average Monthly Rental Income: $2,0.80
- Average Cap Rate: 2.2%
- Price to Rent Ratio: 17
- Renters’ Percent of Population: 60%
- Optimal Property Type: Single family home or townhouse
- Optimal Number of Bedrooms: 4 and 3
- Traditional Rental Listings: 4,295
- 3 Best Neighborhoods in Atlanta for Traditional Rental Properties: Monroe Heights, Carver Hills, and Brentwood
- 3 Worst Neighborhoods in Atlanta for Traditional Rental Properties: Midtown, Virginia Highland, and Cabbagetown
Buying Atlanta investment properties to rent out on long-term basis has been and continues to be a profitable real estate investment strategy. The high proportion of renters (60% of the population) compared to homeowners (40%) combined with the moderate price to rent ratio translates into a high demand for traditional Atlanta rental properties. Together with the relatively affordable house prices in Atlanta, this is a prerequisite for high return on investment in the Atlanta rental market. The mean cap rate at the city level reaches 2.2%, which is above the average level in many other top real estate markets. Real estate investors should keep in mind that some of the Atlanta neighborhoods offer a much higher capitalization rate.
In order to boost their return on investment, Atlanta real estate investors should buy a single family home or a multi family home to rent out traditionally. Furthermore, 3-bedroom and 4-bedroom Atlanta homes for sale offer the highest cap rate for long-term rental properties.
Landlord-Tenant Law and Regulations in the Atlanta Rental Market
Like Savannah, Augusta, and Columbus, Atlanta does not have its own city landlord-tenant laws but follows those in the Georgia real estate market. According to real estate experts, the Georgia housing market is one of the most landlord friendly states in the US. In addition to the relatively low real estate taxes in Georgia, the landlord-tenant law generally favors landlords. For example, there is no limit on the application fees, security deposit, pet deposit, late fees, and other additional fees. The security deposit does not have to be placed in an interest-bearing account (as long as the real estate investor owns less than 10 rental properties), and the landlord is allowed to deduct from the security deposit for any damages caused by the tenant. A list of all damages has to be provided by the landlord within 3 days after the tenants leave the investment property, and the rest of the security deposit should be returned within 30 days.
Moreover, evictions are easy to file in the Atlanta, Georgia real estate market, and the landlord is nearly guaranteed to win the case. The Georgia landlord-tenant law even allows for an informal eviction process. A landlord can file for an unlawful detainer suit as soon as 48 hours after not receiving the rent. If the tenant does not pay within 7 days of receiving a verbal notice, he/she will be evicted.
Best Neighborhoods in Atlanta for Investing in Traditional Rentals
1. Monroe Heights
- Median Property Price: $213,500
- Price per Square Foot: $101
- Average Monthly Rental Income: $1,790
- Average Cap Rate: 6.4%
- Walk Score: 18
Monroe Heights leads the ranking of the hot neighborhoods in Atlanta for real estate investments in 2019. This small area offers a median property price which is less than half the overall Atlanta value. The majority of the Monroe Heights population is young and works white collar jobs, which means that they tend to be good tenants. Indeed, 62% of the residents are renters rather than homeowners. Atlanta real estate investors looking for high return on traditional rental properties should look into this area. Moreover, Monroe Heights offers one of the most profitable opportunities for investing in Airbnb Atlanta properties as well. This means that investors who are not yet certain of their preferred rental strategy can proceed safely with buying an investment property in this neighborhood.
2. Carver Hills
- Median Property Price: $141,200
- Price per Square Foot: $115
- Average Monthly Rental Income: $1,460
- Average Cap Rate: 5.9%
- Walk Score: 6
Carver Hills is one of the best neighborhoods for cheap houses for sale in Atlanta. The very low property prices are the main factor which makes this area so profitable for buying an investment property to rent out on long-term basis. Similar to Monroe Heights, the majority of the Carver Hills population rents, so rental demand is strong. The neighborhood offers an urban lifestyle with a large number of parks and restaurants. However, Carvel Hills is one of the least walkable neighborhoods in Atlanta.
3. Brentwood
- Median Property Price: $172,500
- Price per Square Foot: $84
- Average Monthly Rental Income: $1,530
- Average Cap Rate: 5.5%
- Walk Score: 8
Another one of the up and coming neighborhoods in Atlanta for long-term rental properties is Brentwood. This is also the best place for cheap houses for sale in Atlanta, Georgia if you consider the price per square foot. The population of this area is mostly made of young professionals who rent rather than own a home. Similar to Carver Hills, the Brentwood neighborhood is among the particularly bad neighborhoods in Atlanta in terms of walkability.
4. Chastain Park
- Median Property Price: $431,900
- Price per Square Foot: $197
- Average Monthly Rental Income: $2,690
- Average Cap Rate: 4.1%
- Walk Score: 17
What makes Chastain Park a top location for investing in a traditional rental property is the fact that it is one of the absolute best neighborhoods to live in Atlanta. It is particularly good for families, offers above average public schools, and enjoys a much lower crime rate than the rest of Georgia’s capital. This area offers its residents a suburban feel while still boasting numerous restaurants, coffee shops, and bars as well as parks. The population is diverse, and while many of the residents own their home, there is still enough demand for rental properties to push return on investment up for Atlanta real estate investors in Chastain Park.
5. Princeton Lakes
- Median Property Price: $158,000
- Price per Square Foot: $86
- Average Monthly Rental Income: $1,310
- Average Cap Rate: 4.0%
- Walk Score: 16
Princeton Lakes is yet another one of the best neighborhoods in Atlanta, GA to invest in a long-term rental property. The main reason is the price level which is significantly below what the rest of the homes for sale in Atlanta offer. This neighborhood offers its residents an urban lifestyle with good nightlife options. An important benefit of investing in an Atlanta rental property in Princeton Lakes is that both traditional and Airbnb Atlanta rentals are profitable here.
6. Edgewood
- Median Property Price: $389,200
- Price per Square Foot: $239
- Average Monthly Rental Income: $2,710
- Average Cap Rate: 3.6%
- Walk Score: 70
The last on the list of the best neighborhoods for Atlanta real estate investments in traditional rentals is Edgewood. This area is a good place to live with many outdoor activity opportunities and a busy nightlife. Edgewood is easily ranked among the best places to live in Georgia. It is also one of the most walkable neighborhoods in Atlanta, which completes the urban lifestyle feel. The population is diverse and enjoys easy access to numerous dining and entertainment opportunities.
Atlanta Real Estate Market: Airbnb Rentals
- Average Monthly Rental Income: $2,380
- Average Cap Rate: 2.6%
- Average Occupancy Rate: 45.7%
- Optimal Property Type: Single family home and townhouse
- Optimal Number of Bedrooms: 4 or 3
- Airbnb Rental Listings: 12,124
- 3 Best Neighborhoods for Airbnb Atlanta: Monroe Heights, Woodfield, and South Atlanta
- 3 Worst Neighborhoods for Airbnb Atlanta: Morningside-Lenox Park, Lenox, and Lindridge-Martin Manor
- Airbnb Atlanta Legal Status: Fully legal. An 8% city hotel/motel tax and a $5/night state hotel/motel fee apply.
- Annual Events in Atlanta with the Highest Airbnb Occupancy Rate:
-
- Atlanta Dogwood Festival: a 3-day event in April
This has been Atlanta’s preferred way to welcome the spring for over 80 years now. Various events take place in Piedmont Park including live music, a 5k marathon, cook offs, children’s activities, and an artist market.
-
- Virginia Highland Summerfest: first weekend of June
This festival celebrates the beginning of summer with a series of events. Summerfest attracts visitors from the Southeast with its art, crafts, handmade clothing pieces, music, and children’s play area.
-
- Peachtree Road Race: 4th of July
This annual marathon from Lenox Square Mall to Piedmont Park not only features 60,000 participants but also welcomes nearly the entire population of Atlanta who come to cheer.
-
- Music Midtown: mid-September
This is the largest music event in Atlanta which started 25 years ago and was recently moved to early fall for weather considerations. The music festival has featured major national music bands and performers.
-
- Peach Drop: New Year’s Eve
This is one of the most popular ways for Atlanta residents to spend the last day of the old year and the first day of the new one. Events start in the morning of the 31st of December and last until the morning of the 1st of January. Over 100,000 people take part each year.
All the necessary factors are present in the capital of Georgia to make Airbnb Atlanta a profitable real estate investment strategy. A-Town is not only a major economic and commercial center but also one of the most popular tourist destinations for both domestic and foreign visitors with numerous annual events which push the Airbnb occupancy rate further up. Importantly for real estate investors, Airbnb Atlanta, GA remains legal, unlike many other top locations across the US. While Airbnb hosts have to meet certain requirements, they face no legal restrictions when buying Atlanta houses for sale to rent out on short-term basis.
Atlanta, Georgia vacation rentals offer a cap rate of 2.6% at the city level, which is one of the highest rates among large cities in the US housing market at the moment. In order to optimize their rental strategy and maximize their return on investment, investors are recommended to invest in single family homes and townhouses for sale in Atlanta. The most profitable Airbnb rental properties in the local real estate market have 3 or 4 bedrooms.
Airbnb Atlanta Laws and Regulations
Until now the Airbnb Atlanta rental business has not been affected by the widely spread national trend to impose severe restrictions on short-term rentals, especially in major cities. While there have been attempts to limit the presence of vacation rental homes around Atlanta, this rental strategy remains fully legal in Georgia’s capital. Importantly, Airbnb hosts can rent out not only rooms in their primary residences but also entire non owner-occupied properties, which is a major advantage for real estate investors.
Nonetheless, Airbnb Atlanta hosts have to meet some legal requirements. They have to obtain a hotel license as well as a business license. Moreover, they need to pay an 8% hotel/motel tax to the City of Atlanta in addition to a $5/night hotel/motel fee to the State of Georgia. Comparison with other major markets shows that these taxes are not high and definitely do not prevent short-term rentals from being a very profitable real estate investment option in the Atlanta housing market.
Best Neighborhoods in Atlanta for Investing in Airbnb Rentals
1. Monroe Heights
- Median Property Price: $213,500
- Price per Square Foot: $101
- Average Monthly Rental Income: $4,160
- Average Cap Rate: 17.1%
- Average Occupancy Rate: 51.7%
- Walk Score: 18
Monroe Heights is not only the best place to invest in a long-term Atlanta rental property but also the top location for buying an Atlanta vacation rental. The expected return on investment is very high due to the low home prices and the high rental income from renting out on Airbnb and other similar platforms. The area provides visitors with a suburban feel created by numerous parks ideal for outdoor activities.
2. Woodfield
- Median Property Price: $735,500
- Price per Square Foot: $253
- Average Monthly Rental Income: $9,990
- Average Cap Rate: 12.7%
- Average Occupancy Rate: 42.3%
- Walk Score: 11
Woodfield not solely constitutes one of the best neighborhoods in Atlanta to invest in a short-term rental but also ranks as #2 among the best places for buying a house in Atlanta to live in. However, as the neighborhood is home to some of the most luxury homes for sale in Atlanta, GA, real estate investors here have to be ready to pay 71% more than what they would pay for a median Atlanta property. Nevertheless, the unusually high rental income generated by the short-term rental strategy makes Airbnb Atlanta rental properties very profitable in Woodfield. The area is not only one of the safest neighborhoods in Atlanta but also offers many opportunities for outdoor activities, dining, and nightlife.
3. South Atlanta
- Median Property Price: $188,600
- Price per Square Foot: $141
- Average Monthly Rental Income: $2,340
- Average Cap Rate: 9.2%
- Average Occupancy Rate: 45.2%
- Walk Score: 56
While South Atlanta might not be a top location for living in Georgia, it is #3 among the best Atlanta neighborhoods for buying a vacation rental. Unlike Woodfield, this area offers very affordable investment properties which makes it particularly good for first-time real estate investors and other buyers with limited financing options. Furthermore, South Atlanta ranks among the good neighborhoods in Atlanta for walkability and accessibility.
4. Princeton Lakes
- Median Property Price: $158,000
- Price per Square Foot: $86
- Average Monthly Rental Income: $2,380
- Average Cap Rate: 8.7%
- Average Occupancy Rate: 51.0%
- Walk Score: 16
Airbnb Atlanta rental properties are very profitable in Princeton Lakes too. Moreover, Atlanta real estate for sale is particularly affordable in this neighborhood. Nevertheless, the area offers the best of both worlds – an urban feel accompanied by numerous parks for outdoor activities. The Airbnb occupancy rate here is one of the highest in the Atlanta housing market. An important advantage of buying an Atlanta real estate investment property in Princeton Lakes is that it can be rented out on long-term basis too for high return on investment.
5. Brookhaven
- Median Property Price: $400,000
- Price per Square Foot: $199
- Average Monthly Rental Income: $3,520
- Average Cap Rate: 4.9%
- Average Occupancy Rate: 43.1%
- Walk Score: 7
Brookhaven ranks as one of the best places to live and raise a family in Atlanta because of the good public schools, the excellent housing options, and the level of safety. Furthermore, this is one of the best areas for investing in Atlanta vacation rentals based on the average cap rate. Brookhaven offers an urban lifestyle with multiple opportunities for dining, going out, and nightlife in addition to access to parks. The majority of the population is comprised of young people.
6. East Atlanta
- Median Property Price: $349,100
- Price per Square Foot: $325
- Average Monthly Rental Income: $2,320
- Average Cap Rate: 2.7%
- Average Occupancy Rate: 46.1%
- Walk Score: 11
High return on investment can be achieved with buying an Airbnb Atlanta property in East Atlanta as well. This is one of the best Atlanta neighborhoods for historic landmarks and street art, which makes it attractive to Airbnb guests. Moreover, homes for sale in East Atlanta cost less than what they cost in the rest of Atlanta on average.
Investing in Atlanta Real Estate: Optimal Rental Strategy
One of the most important benefits of buying an Atlanta investment property in 2019 is that both rental strategies – long-term and short-term – yield high return on investment. Nevertheless, Airbnb Atlanta is the slightly more profitable real estate investment strategy, on average. As Mashvisor’s data reveals, some neighborhoods offer really high cap rate for Atlanta vacation rentals, and the overall city Airbnb occupancy rate is strong. The main reasons for Airbnb to emerge as the optimal rental strategy in the Atlanta real estate market include the large number of tourists, the multiple tourist attractions, the presence of Fortune 500 companies, and the overall business environment. Another important factor which has supported the development of the Airbnb rental business in the Atlanta housing market is the lack of legal restrictions and prohibitive regulations which means that both local and out of state real estate investors can buy non owner-occupied properties to rent out on short-term basis. However, if you feel like you are not ready to take the leap and become an Airbnb Atlanta host, remember that the local market offers many opportunities for profitable long-term rental property investments as well.
Why You Should Invest in Real Estate in Atlanta in 2019: The Pros
The reasons why you should consider investing in real estate in Atlanta are many. For starters, it was highlighted as one of the best US real estate markets for overall prospects by PwC, a leading and trusted analytics company in the real estate and financial industries. This ranking is the result of both recent Atlanta real estate market trends and Atlanta housing market predictions. This positive forecast should serve as a strong indicator for Atlanta real estate investors that they can proceed with confidence and peace of mind in 2019.
Related to the overall positive picture of the Atlanta real estate market, data from Mashvisor points out that both short-term and long-term Atlanta rental properties are profitable. Usually major markets tend to favor one rental strategy over another which sometimes scares away beginner real estate investors who are still not sure about the best strategy for them. This is not the case in Atlanta where investors can buy an investment property now and switch their rental strategy in a few months or years if they realize they have not selected the optimal one. Either way, they can expect a high return on investment.
The strong performance of long-term rentals in the Atlanta housing market is supported by the high economic growth, the diverse economy, and the above-average population growth. Most of the Atlanta population is comprised of young professionals who prefer to rent, which pushes rental demand up. The landlord friendly legal environment further boosts the growth of the traditional rental industry in Atlanta.
The fact that Georgia’s capital is one of the most visited US cities, the numerous attractions, and the conducive business environment allowed for the emergence of a strong Airbnb Atlanta business as well. Importantly, the local authorities have not imposed any restrictions on short-term rentals in the Atlanta real estate market. While Airbnb hosts are expected to register their business and to pay taxes, this does not compromise their high return on investment.
In addition, if you decide to buy an Atlanta investment property in 2019, you will be able to choose from a wide selection of Atlanta, GA houses for sale including single family homes, condos, townhouses, and multi family homes. The Atlanta real estate market is diverse, so you are guaranteed to find an investment property which matches your budget, expectations, and desired return.
Why You May Not Want to Invest in Real Estate in Atlanta in 2019: The Cons
There are a few things which Atlanta real estate investors should consider before buying a rental property. First of all, the median price of homes for sale in Atlanta, GA is about double the nationwide level. This means that property investors should figure out the best way to finance an Atlanta rental property before starting their property search. Another option for investors with limited budgets is to focus on the more affordable neighborhoods. As Mashvisor’s data shows, it is possible to invest in cheap houses in Atlanta, including foreclosures.
Another disadvantage of buying an Atlanta investment property is the high crime rate in the city. Investors in the local market will need to spend more on insurance and security than investors in other top real estate markets. So, when you conduct investment property analysis, you should consider this increased expense. Make sure that this does not affect your ability to find a positive cash flow investment property.
Last but not least, beginner real estate investors with no experience in the Georgia housing market might find the thousands of Atlanta real estate listings overwhelming. However, as long as they determine their budget, requirements, optimal rental strategy, and expected return, they will be able to narrow down their property search and concentrate on the most relevant Atlanta homes for sale.
Atlanta Real Estate Market Forecast
The outlook for the Atlanta real estate market in 2019 and beyond is positive. All economic, financial, and demographic factors come together to point towards a stable and strong housing market. Real estate appreciation is expected to slow down a bit, so while investors will benefit from long-term return, Atlanta investment properties will remain affordable. Importantly, real estate experts say that the Atlanta housing market has started shifting away from a seller’s market and towards a buyer’s market since late 2018. This trend is particularly important for new investors who want to avoid being caught in extremely tight competition and bidding wars. Meanwhile, a housing market bubble or a real estate market crash does not seem to be in sight for Atlanta investors any time soon. Considering the overall Atlanta housing market forecast, all-level investors should be able to find a good deal, especially if they hire one of the top Georgia real estate agents to help them out.
Additional Resources for Investors in the Atlanta Rental Market
Best Atlanta Investment Properties
With the help of an investment property calculator, you can search through the 6,072 homes for sale in Atlanta, GA and filter the ones which meet your criteria such as budget, property type, optimal rental strategy, and expected return on investment in a matter of minutes. A heatmap tool will provide you with an Atlanta neighborhood map to figure out the top Atlanta neighborhoods to invest in real estate as well as the neighborhoods to avoid in Atlanta. A Property Finder will help you find the best Atlanta investment property depending on your preferred rental strategy and other preferences.
Top Real Estate Agents in Atlanta, GA
If you are a first-time real estate investor or an out of state investor or you simply prefer passive real estate investments, you should hire one of the best real estate agents in Atlanta to help you make a good deal.
Here are Mashvisor’s most popular agents in the Atlanta housing market:
House Auctions in Atlanta
If you are interested in investing in Atlanta foreclosures, you can check out this calendar for auctions as well as other foreclosure related events in the Georgia housing market.
Property Management of Long-Term Rentals
Investing in an Atlanta rental property doesn’t have to mean becoming a landlord and dealing with all the hard daily work. Instead, you can hire a professional property manager to deal with all your duties and responsibilities, while you enjoy your passive rental income.
Property Management of Short-Term Rentals
If you want to turn your Atlanta vacation rentals into passive real estate investments, choose one of the top property managers in A-Town to handle all responsibilities related to owning and renting out a vacation rental home.
Our Top Blog Posts for Investors in the Atlanta Real Estate Market
- Why You Should Invest in the Atlanta Housing Market 2019
- Where to Buy Atlanta Investment Properties in 2019
- What’s Up with Airbnb Atlanta?
- Atlanta Real Estate 2018: Why and Where to Invest
- Atlanta Real Estate Market 2018: The Trends Investors Need to Know About
Other Top Real Estate Markets for Investing in Rental Properties
- Nashville Real Estate Market
- Dallas Real Estate Market
- Las Vegas Real Estate Market
- Los Angeles Real Estate Market
- Orlando Real Estate Market
- San Francisco Real Estate Market
- Philadelphia Real Estate Market
- Phoenix Real Estate Market
- Portland Real Estate Market
- Chicago Real Estate Market
- New York City Real Estate Market