Has Atlanta's Rental Prices Quietly Become Very High? (Alpharetta, Canton: apartments, foreclosed)

[mosborne39]

I moved here in 2002 and the rent was very reasonable for a metro this size. It seems has been a "stealthy" increase in rental prices, until we're at the point where Atlanta rentals in nice areas in the city are almost as expensive as other major cities in the Northeast and the West Coast.

[testa50]

Quietly???

But no, it's not that bad. Take Seattle.

Here's a nice midrise building in Belltown:

https://alexan100.com/floor-plans/#f...&md=02/08/2020

Compare this to a nice midrise building in Midtown:

https://www.spectrumonspring.com/spe...-ga/floorplans

The Seattle apartments are almost twice as much.

Los Angeles?

https://www.junction4121.com/floorplans

~Twice as much.

SF?

https://www.ashtonsf.com/floor-plans.aspx

Again, double.

These aren't cherry picked; they're the first results I'm finding for each city.

Atlanta ain't cheap like 10-15 years ago, but it's nowhere near the west coast city. And Boston/NYC/DC I suspect are more expensive for comparable housing, but it's harder to find comps that actually give pricing in these cities.

[Redlionjr]

Originally Posted by mosborne39

I moved here in 2002 and the rent was very reasonable for a metro this size. It seems has been a "stealthy" increase in rental prices, until we're at the point where Atlanta rentals in nice areas in the city are almost as expensive as other major cities in the Northeast and the West Coast.

Rent has gone up in most major cities all across America. Still Atlanta is not as expensive as major cities on the Westcoast and Northeast.

[Atlwarrior]

Per the Atlanta Business Chronicle,

“Historically, leasing 15 to 20 units every month is considered a strong performance for a recently completed project. Intown has seen the average closer to 21 
or even 22 units leased per month, Hall said.

Average rent growth since 2012 across intown Atlanta for high-rise apartments has averaged about 5.7% per year. It has slowed recently, but job growth remains robust, with companies such as Macy's Inc. recently choosing Midtown to bolster its Atlanta tech hub. It could add hundreds of high-paying tech positions.”

[citidata18]

There's a couple reasons for this, just unique to Atlanta:

1. The severe lack of homebuilding, which is forcing a ton of potential homebuyers to stay in the rental market longer. Prominent local homebuilders (I.E. PTC Corporation / Pathway Communities) went bankrupt and the ones that remain (Pulte Homes) are now very picky about the housing they build. Unironically, what little homebuilding is happening is occurring only in Forsyth and Cherokee Counties, which are adjacent to major white collar employee centers and are seeing a huge influx of professionals who work in tech / finance (thus people who can afford the higher end homes that builders are interested in supplying).

There was a thread recently that showed Austin (a metro of only 2 million) built just as many homes as Atlanta, while Dallas and Houston each had built nearly double the number of homes than Atlanta, despite Atlanta being the 3rd fastest growing metro in the country.

2. As so much speculative homebuilding was taking place in Atlanta pre-recession and Georgia has such ****ty landlord-tenant laws, there was a huge buying spree of foreclosed properties by investment companies around 2009 - 2012 who now hold a monopoly on the local rental market, giving then freedom to price gouge and set lease terms that would be illegal in most other states (if you don't like it as a tenant, who else are you going to rent from?).

I'm really not sure what can be done to correct this. Atlanta can't control its unfavorable terrain that makes construction more expensive, there's no chance of state "leaders" doing anything to address Georgia's archaic Landlord-Tenant laws and the insane number of municipalities / counties (NIMBYs) makes it harder for builders to lobby for stuff such as elimination of impact and land disturbance fees to build homes at lower costs.

[DreamerD]

Originally Posted by citidata18

There's a couple reasons for this, just unique to Atlanta:

1. The severe lack of homebuilding, which is forcing a ton of potential homebuyers to stay in the rental market longer. Prominent local homebuilders (I.E. PTC Corporation / Pathway Communities) went bankrupt and the ones that remain (Pulte Homes) are now very picky about the housing they build. Unironically, what little homebuilding is happening is occurring only in Forsyth and Cherokee Counties, which are adjacent to major white collar employee centers and are seeing a huge influx of professionals who work in tech / finance (thus people who can afford the higher end homes that builders are interested in supplying).


A long time ago I looked at a property in Canton (not for me) and could not believe how expensive it was for the square footage. That side of town is pretty costly (at least for newer property) and I'm assuming because of these mid-level/top-level professionals, the prices won't go down because they have the demand to support it.


2. As so much speculative homebuilding was taking place in Atlanta pre-recession and Georgia has such ****ty landlord-tenant laws, there was a huge buying spree of foreclosed properties by investment companies around 2009 - 2012 who now hold a monopoly on the local rental market, giving then freedom to price gouge and set lease terms that would be illegal in most other states (if you don't like it as a tenant, who else are you going to rent from?).

I'm really not sure what can be done to correct this. Atlanta can't control its unfavorable terrain that makes construction more expensive, there's no chance of state "leaders" doing anything to address Georgia's archaic Landlord-Tenant laws and the insane number of municipalities / counties (NIMBYs) makes it harder for builders to lobby for stuff such as elimination of impact and land disturbance fees to build homes at lower costs.

I'm still considering tech and at entry level, I would have to get a roommate or continue to live with family. Though it is not the main reason, housing affordability would force me to consider other major cities...maybe "third-tier" at this point lol. Atlanta like other major cities was once a lot more affordable and so people who are just now entering the game and don't earn a lot, will have to be open to moving or getting a ton of roommates.

[NorthAtlanta]

I live near the Avalon, Alpharetta and the rents here have skyrocketed in the last 5 years. $4000 a month for a 2 BHK was previously unheard of but now has become quite common.. The rents in the nicer parts of Atlanta are a tad bit lower compared to the west coast or east coast but not very behind..

The median new home price in the nicer parts - Alpharetta, East Cobb, Buck Head, Milton, Johns Creek and South Forsyth is somewhere north of 600k..

[Tarzanman]

Originally Posted by mosborne39

I moved here in 2002 and the rent was very reasonable for a metro this size. It seems has been a "stealthy" increase in rental prices, until we're at the point where Atlanta rentals in nice areas in the city are almost as expensive as other major cities in the Northeast and the West Coast.

It hasn't been a quiet increase. Those of us who are renters have taken notice.
My 2 BR Apt in 2019 is renting for the same price as a 3BR townhome with garage in 2012. The parts of town are different, but price average in the two areas (roughly 6 miles apart) are close enough for comparison.

Alpharetta has seen a large increase in the past half decade due to the large number of white collar jobs centered around the area and people relocating from more expensive markets.

It is nowhere near as bad here as in Boston (where renter-paid brokers fees are the norm, you'll live in an 80-year old hovel with no central HVAC, and trying to rent for less than a year and/or without good credit is a non-starter) but the nicer suburbs of Atlanta are within 15% of rents in large metros.

Its a bubble. Its not like the last bubble, but there are signs that developers are running out of customers with the ability to afford the purchase of half million dollar homes. I don't know what flippers or cash buyers are seeing, but a few articles I have read on the subject are theorizing about the long term implications of ownership being consolidated among a much older and much more wealthy demographic than in generations past.

[mosborne39]

Originally Posted by testa50

Quietly???

But no, it's not that bad. Take Seattle.

Here's a nice midrise building in Belltown:

https://alexan100.com/floor-plans/#f...&md=02/08/2020

Compare this to a nice midrise building in Midtown:

https://www.spectrumonspring.com/spe...-ga/floorplans

The Seattle apartments are almost twice as much.

Los Angeles?

https://www.junction4121.com/floorplans

~Twice as much.

SF?

https://www.ashtonsf.com/floor-plans.aspx

Again, double.

These aren't cherry picked; they're the first results I'm finding for each city.

Atlanta ain't cheap like 10-15 years ago, but it's nowhere near the west coast city. And Boston/NYC/DC I suspect are more expensive for comparable housing, but it's harder to find comps that actually give pricing in these cities.

Thanks. I believe the gap will soon become even more narrow

[mosborne39]

Originally Posted by citidata18

There's a couple reasons for this, just unique to Atlanta:

1. The severe lack of homebuilding, which is forcing a ton of potential homebuyers to stay in the rental market longer. Prominent local homebuilders (I.E. PTC Corporation / Pathway Communities) went bankrupt and the ones that remain (Pulte Homes) are now very picky about the housing they build. Unironically, what little homebuilding is happening is occurring only in Forsyth and Cherokee Counties, which are adjacent to major white collar employee centers and are seeing a huge influx of professionals who work in tech / finance (thus people who can afford the higher end homes that builders are interested in supplying).

There was a thread recently that showed Austin (a metro of only 2 million) built just as many homes as Atlanta, while Dallas and Houston each had built nearly double the number of homes than Atlanta, despite Atlanta being the 3rd fastest growing metro in the country.

2. As so much speculative homebuilding was taking place in Atlanta pre-recession and Georgia has such ****ty landlord-tenant laws, there was a huge buying spree of foreclosed properties by investment companies around 2009 - 2012 who now hold a monopoly on the local rental market, giving then freedom to price gouge and set lease terms that would be illegal in most other states (if you don't like it as a tenant, who else are you going to rent from?).

I'm really not sure what can be done to correct this. Atlanta can't control its unfavorable terrain that makes construction more expensive, there's no chance of state "leaders" doing anything to address Georgia's archaic Landlord-Tenant laws and the insane number of municipalities / counties (NIMBYs) makes it harder for builders to lobby for stuff such as elimination of impact and land disturbance fees to build homes at lower costs.

That makes sense the only place to build now is vertically in the city.