Sky's the limit for Atlanta rents - Ponce City Market leases are just a sampling (Avera: transplants, real estate)

[erick295]

I see Atlanta hasn't quite gotten used to being a city yet.

Go apartment hunting in DC, then see how high you think our in-town rents are.

[Tarzanman]

Atlanta's rents certainly are high relative to the median income. If you check the link that red92s posted (Most Income Inequality: U.S. Cities - Bloomberg Best (and Worst)) you will see that Atlanta's median income is ~$46k whereas D.C.'s median income is $66k.

~$1000 extra per month (net after taxes), goes a long way to helping one make the rent.

[residinghere2007]

Originally Posted by AnsleyPark

Welcome to the real world folks.

I agree with this, especially the real world when it comes to housing.

I for saw this from the beginning in the fact that the Beltline communities are focusing on "affordable" and "workforce" housing. Many people assume "affordable" housing is for low income people when it is not. These new developments are just a way to push more low income people out of the city and whether one thinks that is a good idea or not, it depends on the individual. But that is the way the world goes now and I am surprised that people were not aware that all these new apartment communities would be so expensive.

Originally Posted by Tarzanman

Atlanta's rents certainly are high relative to the median income. If you check the link that red92s posted (Most Income Inequality: U.S. Cities - Bloomberg Best (and Worst)) you will see that Atlanta's median income is ~$46k whereas D.C.'s median income is $66k.

~$1000 extra per month (net after taxes), goes a long way to helping one make the rent.

Also wanted to speak on this. Even though I do think that low income people should have choices in regards to quality housing, even newer developments, I think that many of the posters here are under the assumption that the median income for the city of Atlanta is higher than it really is. The median income here is MUCH lower than that in other major metropolitan areas who have rents that are similar to the newer units being developed in Atlanta. This is one of the reasons why I feel that many of these developments will not be as profitable as developers and many cheerleaders of those developments feel they will be. Unless more and more people start making more and more money here in Atlanta, I do feel that eventually the rents will decrease because they will not have occupancy rates above 90% and won't be able to make any money off of those locations.

Also, I will go out on a limb and state that the primary lure of people moving to Atlanta, especially from the Midwest and the North East is the fact that there are low rents here. People are willing to take a lower amount in pay due to the fact that they won't have to spend as much of their income on housing. These newer developments are starting a trend whereas the rents are very high, yet many people who move here will not be making the same salary that they would be making in the North East especially and probably the same amount in salary for someone relocating from the Midwest. Weather can only go so far in luring people and population migrations are primarily based on economic opportunities. I have a feeling that if this trend continues and salary doesn't keep up with the rental market demands, then growth in the area will begin to halt and decline in the future.

[erick295]

Originally Posted by Tarzanman

Atlanta's rents certainly are high relative to the median income. If you check the link that red92s posted (Most Income Inequality: U.S. Cities - Bloomberg Best (and Worst)) you will see that Atlanta's median income is ~$46k whereas D.C.'s median income is $66k.

~$1000 extra per month (net after taxes), goes a long way to helping one make the rent.

Hahaha, you know housing costs in DC are like double what they are in Atlanta, right? It can easily cost $200-300 a month just to park a car.

[residinghere2007]

Originally Posted by erick295

Hahaha, you know housing costs in DC are like double what they are in Atlanta, right? It can easily cost $200-300 a month just to park a car.

But in DC they make more money.

And FWIW, I have a cousin who lives in DC who rents a 1bd apartment for $1800, similar to what is being asked at these new developments. Mind you, she doesn't live in a new building, but she doesn't live in a bad neighborhood and she makes around $70K per year as a single person, so a little above the median income for DC.

[erick295]

Originally Posted by residinghere2007

But in DC they make more money.

Well, yes, they make "more," but they don't make twice as much, hence a significantly larger percentage of income is spent on housing. Simple math here folks.

Also, any sentence that starts with "my cousin..." or "this guy I know..." is guaranteed to be statistically irrelevant

[residinghere2007]

Originally Posted by erick295

Well, yes, they make "more," but they don't make twice as much, hence a significantly larger percentage of income is spent on housing. Simple math here folks.

Also, any sentence that starts with "my cousin..." or "this guy I know..." is guaranteed to be statistically irrelevant

Honestly, I don't get where your "double" rent amounts come in regarding DC. All the info I have seen hasn't shown rents are double what is being offered at PCM and other new developments in the city of Atlanta.

Average Washington DC rents. From the link:

As of March, 2014, average apartment rent within 10 miles of Washington, DC is
$1824.

One bedroom apartments in Washington rent for $1692 a month on
average and two bedroom apartment rents average $2070.

Basically that shows my cousin's rent is average for a 1bd in DC, she is actually above the 1bd average, but she does stay in a nice area, closer to more desirable neighborhoods in DC so of course she would be above the $1600 mark. In really really high demand areas, of course you could see them costing more, but she was intent on staying beneath $2K per month due to parking cost, as you said in DC it cost a lot to park your vehicle. My cousin pays $200 a month to park her vehicle in DC.

You will see that it is a fact that in practically all areas that have higher rents, they have higher wages and median incomes. Shoot, in Chicago, the median income is higher than Atlanta's and you can find way cheaper rentals there in nice areas versus what is being asked at these new developments here in Atlanta.

[gtjared]

Originally Posted by residinghere2007

All the info I have seen hasn't shown rents are double what is being offered at PCM and other new developments in the city of Atlanta.

Basically that shows my cousin's rent is average for a 1bd in DC, she is actually above the 1bd average, but she does stay in a nice area, closer to more desirable neighborhoods in DC so of course she would be above the $1600 mark. In really really high demand areas, of course you could see them costing more, but she was intent on staying beneath $2K per month due to parking cost, as you said in DC it cost a lot to park your vehicle. My cousin pays $200 a month to park her vehicle in DC.

PCM and these new developments are in the hottest areas in town. Of course the rents are going to be high. Why would you compare the priciest developments in Atlanta to DC's average? Believe me there's plenty of cheap places still in town, they're just not the newest trendiest developments with the greatest amenities. I have a very affordable apartment smack between Piedmont Park and the heart of Midtown. I'm renewing my lease right now, and my rent is not going up.

Why would anyone expect PCM to be cheap when it's one of the most desirable places in Metro Atlanta.

[noah]

Incomes in Midtown are higher than the Atlanta average and households are smaller (1.6 on average). Lots of people in Midtown with good paying jobs that can afford it. Everyone wants to compare to other cities but each market is different and it appears the demand for these units intown is there based on how quick new buildings have gone to 100% occupancy. As the previous poster mentioned their cousin is paying higher rent because they choose a really desirable area, same goes for Midtown Atlanta.

[residinghere2007]

Originally Posted by gtjared

PCM and these new developments are in the hottest areas in town. Of course the rents are going to be high. Why would you compare the priciest developments in Atlanta to DC's average? Believe me there's plenty of cheap places still in town, they're just not the newest trendiest developments with the greatest amenities. I have a very affordable apartment smack between Piedmont Park and the heart of Midtown. I'm renewing my lease right now, and my rent is not going up.

Why would anyone expect PCM to be cheap when it's one of the most desirable places in Metro Atlanta.

I never said I expected PCM to be cheap. I work in the housing industry and I have been telling people since both the Beltline began and PCM redevelopment that apartment communities surrounding the Beltline and of course at PCM would be expensive.

I made those statements because the poster who I was referencing stated that the PCM apartments are cheap compared to DC. They really aren't cheap compared to DC, they are similar to average DC rents and in DC people make more money than they make here so of course that area would have a higher rental average than Atlanta. I have family in DC and they make way more money than what I make and we are in similar fields. Median salaries are used as a basis for rents in a city usually. Due to the median salary in Atlanta only being a little above $46K, it is worrisome from a development standpoint that these apartments cost so much. And FWIW, the apartments in O4W near the new park that are currently being built are next to a few other older developments that have rents that are in no way near that of PCM. And that area is right across the street on North Ave. People who want the urban living in that area can easily go 2 blocks north and live in O4W for less than those new developments.