Atlanta home prices listed as second most "overvalued" in nation (Druid Hills: houses, neighborhoods)

[jeoff]

Originally Posted by cqholt

I am just sitting back, smiling because I bought in Kirkwood during 2010.

It's better to be lucky than smart!

[jeoff]

Originally Posted by Clayton white guy

Buford Highway corridor used to be "nicer" when they were newer; apartments in that corridor have never been considered the "top luxury option of the wealthy" or even the upper middle class. At best, they were "starter" units for young professionals and other working people that lived there until they could make/save more money to buy a home, or rent somewhere a little more upscale. Convenience to job centers is definitely something that the Buford Highway area (especially around North Druid Hills Road) has going for it.

It's still a good location. You see an occasional small gated development mixed in with the old stuff--wonder if we will see much more of that any time soon?

[testa50]

I wish this article would be a little more open with methodology. This isn't a standard metric (avg rent vs average home valuation, for instance, is a more mainstream metric).

I mean, digging up some basic data on the subject doesn't really indicate this at all:

http://www.realtor.org/sites/default...2015-05-11.pdf

Single family median sales prices (Atlanta vs major, coastal cities):

Atlanta $159k
Los Angeles $449k
Miami $266k
Seattle $355k
Boston $389k

https://www.census.gov/content/dam/C...acsbr13-02.pdf

Average household income:

Atlanta $55k
Los Angeles $59k
Miami $47k
Seattle $67k
Boston $73k

Atlanta looks a-okay in comparison to the big coastal cities.

Of course, affordability is only one piece of the puzzle (if a bunch of Russians decide to buy up all of the houses in your city, well, prices will go up), but it's the piece this article claims to be using. And a cursory look at numbers that are actually published and readily available on the subject makes their conclusion deeply questionable.

[cqholt]

Originally Posted by jeoff

It's better to be lucky than smart!

No, I was smart and knew that Kirkwood would rise. I talked to residents, visited the area, read the local listserv, and did my research. I don't think I went in there blind, but I didn't think prices would rise so quick. There are a lot of hardworking residents that donate a lot of time and effort into the neighborhood. I am one of them so I see the effects of our hardwork.

[jeoff]

Originally Posted by cqholt

No, I was smart and knew that Kirkwood would rise. I talked to residents, visited the area, read the local listserv, and did my research. I don't think I went in there blind, but I didn't think prices would rise so quick. There are a lot of hardworking residents that donate a lot of time and effort into the neighborhood. I am one of them so I see the effects of our hardwork.

Lucky AND hardworking AND smart...even better!

[Ant131531]

Originally Posted by bu2

Its still "planned" at this point. Actual built in the last two years was well below peak averages (think it was 4000 to just over 5000 each of the last two years). A lot of those planned projects won't get funding. Right now they still have very good occupancy.

Condos and luxury apartments were going up all over the place in 2008. You could see dozens of cranes driving down Piedmont. In 2010 they had a 99 year supply of condos based on the previous 6 months sales. That's why they did all those auctions-to cut down on inventory.

Inman Park has always been nice though. I doubt it would turn into a slum. It's simply out of reach for too many people at this point. Look at the recent Inman Quarter apartments build. The units filled up insanely fast and average rents for the complex is higher than average for a hot neighborhood...probably midtown prices. Inman Park's housing supply is VERY low for how many people want to live there because 80% of the neighborhood is single family homes which limits how many people can actually live there.

If anything, there is still an under supply of apartments in Atlanta in contrast to the current rent growth. In fact, the lack of building is causing rents to swell and it's not because of overvaluation.

Right now, job growth in Atlanta is very good and the immediate future bolds well for Atlanta(At least through 2017). I'm not saying we need 3 units permitted every month, but at this rate, with the way rents have been rising, many neighborhoods that are nice and walkable will be out of reach for many people who want to live there.

[bu2]

Originally Posted by Ant131531

Inman Park has always been nice though. I doubt it would turn into a slum. It's simply out of reach for too many people at this point. Look at the recent Inman Quarter apartments build. The units filled up insanely fast and average rents for the complex is higher than average for a hot neighborhood...probably midtown prices. Inman Park's housing supply is VERY low for how many people want to live there because 80% of the neighborhood is single family homes which limits how many people can actually live there.

If anything, there is still an under supply of apartments in Atlanta in contrast to the current rent growth. In fact, the lack of building is causing rents to swell and it's not because of overvaluation.

Right now, job growth in Atlanta is very good and the immediate future bolds well for Atlanta(At least through 2017). I'm not saying we need 3 units permitted every month, but at this rate, with the way rents have been rising, many neighborhoods that are nice and walkable will be out of reach for many people who want to live there.

It was pretty down in the 70s when they tried to level it for a freeway.

I don't expect it to go down. I'm just talking theoretically. If you get a large mass of apartments in one area, there is the risk that you get an oversupply in the metro and the apartments can decline and cause lots of problems for the surrounding neighborhoods in addition to the apartment complex itself.

[jeoff]

Originally Posted by bu2

It was pretty down in the 70s when they tried to level it for a freeway.

I don't expect it to go down. I'm just talking theoretically. If you get a large mass of apartments in one area, there is the risk that you get an oversupply in the metro and the apartments can decline and cause lots of problems for the surrounding neighborhoods in addition to the apartment complex itself.

Thinking Memorial Drive-Stone Mountain in the 80s?

[cqholt]

Originally Posted by bu2

It was pretty down in the 70s when they tried to level it for a freeway.

I don't expect it to go down. I'm just talking theoretically. If you get a large mass of apartments in one area, there is the risk that you get an oversupply in the metro and the apartments can decline and cause lots of problems for the surrounding neighborhoods in addition to the apartment complex itself.

Will we see Perimeter Center go down because that area has a huge amount of apartments and some are starting to get old?

[Clayton white guy]

Perimeter Center? Depends if they keep their current residents for convenience sake and the upkeep/ renovation of the existing complexes.