Sky's the limit for Atlanta rents - Ponce City Market leases are just a sampling (to live in, prices)

[bhammaster]

Originally Posted by afdinatl

A lot of people in this thread do not travel much i see. Visit the area around Chelsea Market or The Ferry Building in San Fran and see how many $1200 ome bedrooms you will find.

$1200 is the minimum.

Point is unless wages rise to catch up here you may as well move to the northeast if the percent of your income going to housing is roughly the same anyway with the higher wages offered there.

That isn't the case now but it may get that way.

I think the bubble will just burst first though.

[afdinatl]

Originally Posted by bhammaster

$1200 is the minimum.

Point is unless wages rise to catch up here you Either you s well move to the northeast if the percent of your income going to housing is roughly the same anyway with the higher wages offered there.

That isn't the case now but it may get that way.

I think the bubble will just burst first though.

Like I said there are plenty of one bedrooms ITP for way less than $1200 per month in safe areas. Either you all are out of the loop or you all are just making up stuff. Saying people are going to be priced out of atlanta is like saying people are going to priced out of Buckhead so they all will leave metro atlanta which doesn't make any sense. $1200+ for a one bedroom is extreme here and not the norm unless that person likes upscale apartments. The average one bedroom in a nice area outside of the core of atlanta is between $700-$950 per month. If you all think $1200 is going to be the norm for every new apartment in Atlanta then I have a beach in North Dakota to sell you

[residinghere2007]

Originally Posted by afdinatl

Like I said there are plenty of one bedrooms ITP for way less than $1200 per month in safe areas. Either you all are out of the loop or you all are just making up stuff. Saying people are going to be priced out of atlanta is like saying people are going to priced out of Buckhead so they all will leave metro atlanta which doesn't make any sense.

One never knows if the trend will catch on.

San Fran did not used to have high rents like they do now but once that trend started.....you can now see what happened there. It has also happened in DC and other areas around the country.

Personally, I don't see that it could be a trend here like in those areas, which is why the higher rents are pretty outrageous. And FWIW, one can still find better priced apartments in Buckhead beneath what PCM is trying to charge. It doesn't make any sense to pay in PCM what you can get for less in Buckhead or Midtown.

[onemanarmy]

Originally Posted by residinghere2007

One never knows if the trend will catch on.

San Fran did not used to have high rents like they do now but once that trend started.....you can now see what happened there. It has also happened in DC and other areas around the country.

Personally, I don't see that it could be a trend here like in those areas, which is why the higher rents are pretty outrageous. And FWIW, one can still find better priced apartments in Buckhead beneath what PCM is trying to charge. It doesn't make any sense to pay in PCM what you can get for less in Buckhead or Midtown.

Ok, let's step back and look at PCM as a development. It's arguably the best development the city has had since Atlantic Station. It in the most drastically changing neighborhood in Atlanta, and borders Midtown, Downtown, VaHi, and Inman Park. It's on Ponce which has direct access to Druid Hills and Decatur. If you live here you will have more retail than Midtown at your door steps, and it will be more walkable than Buckhead. It really can be an urban paradise. It's on the Beltline, has a great new park. If they put a street car on Ponce or North Ave they will be even more expensive.

[afdinatl]

Originally Posted by residinghere2007

One never knows if the trend will catch on.

San Fran did not used to have high rents like they do now but once that trend started.....you can now see what happened there. It has also happened in DC and other areas around the country.

Personally, I don't see that it could be a trend here like in those areas, which is why the higher rents are pretty outrageous. And FWIW, one can still find better priced apartments in Buckhead beneath what PCM is trying to charge. It doesn't make any sense to pay in PCM what you can get for less in Buckhead or Midtown.

I can tell by your posting that you haven't been in Atlanta or O4W recently

[erick295]

Originally Posted by residinghere2007

It doesn't make any sense to pay in PCM what you can get for less in Buckhead or Midtown.

It makes a whole lot of sense if you want to live in a unique historic building in that part of town.

[testa50]

High rents caused by high demand for apartments = good thing
High rents caused by lack of ability to supply new apartments = bad thing

As long as there is the ability to deliver new units (which in Atlanta there is, almost infinitely), then high rents aren't a bad thing at all.

A big reason rents are chronically high in SF, Boston, and NYC is that new development is severely constrained, by both spatial and artificial factors. In Atlanta, not so. If our rents get too high, new developers rush to supply the market with inventory, and they go back down again. The cycle is healthy, beneficial, and predictable.

Also, high rents are not indicative of an apartment bubble. They are indicative of demand exceeding supply. Which is evidence against a bubble. Apartments aren't like for-sale housing. It takes decades for owner-occupied housing to turn over completely; apartment leases are renegotiated every year. The pricing of the two assets is totally different (hint: during the mid-2000s property bubbles, rents were actually quite stable compared with for-sale properties).

Rio de Janeiro is a good example of high rents for all the wrong reasons. Office rents there are even higher than NYC, despite the overall health of the economy being far, far worse than NYC. The high rents there represent a loss of surplus value to businesses; a dead-weight loss to the economy.

[erick295]

Originally Posted by testa50

High rents caused by high demand for apartments = good thing
High rents caused by lack of ability to supply new apartments = bad thing

As long as there is the ability to deliver new units (which in Atlanta there is, almost infinitely), then high rents aren't a bad thing at all.

A big reason rents are chronically high in SF, Boston, and NYC is that new development is severely constrained, by both spatial and artificial factors. In Atlanta, not so. If our rents get too high, new developers rush to supply the market with inventory, and they go back down again. The cycle is healthy, beneficial, and predictable.

Also, high rents are not indicative of an apartment bubble. They are indicative of demand exceeding supply. Which is evidence against a bubble. Apartments aren't like for-sale housing. It takes decades for owner-occupied housing to turn over completely; apartment leases are renegotiated every year. The pricing of the two assets is totally different (hint: during the mid-2000s property bubbles, rents were actually quite stable compared with for-sale properties).

Rio de Janeiro is a good example of high rents for all the wrong reasons. Office rents there are even higher than NYC, despite the overall health of the economy being far, far worse than NYC. The high rents there represent a loss of surplus value to businesses; a dead-weight loss to the economy.

Very well put. That pretty much sums up the whole situation.

Regarding your list of other cities, DC has height restrictions.

[residinghere2007]

Originally Posted by afdinatl

I can tell by your posting that you haven't been in Atlanta or O4W recently

LOL, I live in Atlanta and I am in the O4W 6 out of 7 days a week.

[noah]

Yes, this applies to me. I haven't rented in a decade but have considered moving to PCM because of the history and all it promises to be.

Originally Posted by erick295

It makes a whole lot of sense if you want to live in a unique historic building in that part of town.