Atlanta has the second highest rent growth among the top 10 markets
Atlanta, August 5, 2015 – The multifamily sector continues to
perform well as new developments partly satisfy the deep demand for apartments
across the U.S., and especially in Atlanta. A recent CBRE Research report has
found that over the past several quarters, the national demographic of those
seeking rental opportunities has diversified, pushing the overall nationwide
apartment vacancy to 4.8% and the home ownership rate to 63.4% – its lowest
level since 1967.
The report finds that national rent growth
has reached its strongest year-over-year gain in nine years, leading to the
highest historical multifamily four-quarter investment by the end of the first
quarter in 2015. Rent appreciation is gaining momentum and extends across all
Atlanta submarkets, bringing Atlanta to a record year-over-year rent growth
rate of 7.8%.Meanwhile,
the overall vacancy rate has steadily declined—from its 11.0% high six years
ago, to 6.0%, where it has remained for the past two quarters.
According to the US Census Bureau, the
national home ownership rate dropped to a 48-year low in 2Q15, and within every
age cohort, except 65+, homeownership has declined over the past 20 years. This
creates an even stronger demand for multifamily development, which CBRE expects
will continue for the next 20 years. Atlanta is expected to fare well, as it
has the second lowest rent among the top 10 markets and the highest vacancy
decrease over the past 12 months among the top 20 markets.
The trend toward urbanization and
higher-density living in Atlanta looks likely to remain or accelerate as more
residents chose to be near major in-town employment and entertainment nodes
from which daily commutes via MARTA, bicycle, walking or short drives are
viable. Added amenities and walkability in Buckhead, Midtown, Old Fourth Ward,
Inman Park and along the Atlanta BeltLine have made these submarkets especially
Job growth and a reinvigorated demand for stylish
new rental product in Atlanta have bolstered the city’s multifamily leasing momentum
while simultaneously pushing rents to record levels. With more than 95,500 jobs
added over the past four quarters, Atlanta is expected to have the fourth
highest job growth nationwide over the next two years.
Investors are noticing. Multifamily sales
volume in Atlanta has spiked in the past three quarters, up 53.6% over the same
period a year earlier.Atlanta achieved the highest overall return among the major
apartment markets. If new construction activity remains within a healthy range
and oversupply is avoided, Atlanta will see continued rental rate appreciation
and below-trend vacancy rates over the near term.
About CBRE Group, Inc. CBRE
Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in
Los Angeles, is the world’s largest commercial real estate services and
investment firm (in terms of 2014 revenue).
The Company has more than 52,000 employees (excluding affiliates), and
serves real estate owners, investors and occupiers through more than 370
offices (excluding affiliates) worldwide. CBRE offers strategic advice and
execution for property sales and leasing; corporate services; property,
facilities and project management; mortgage banking; appraisal and valuation;
development services; investment management; and research and consulting.
Please visit our website at www.cbre.com.