Real estate investments in Atlanta continue to attract both people and investment capital.
Buckhead Heights, Hanover West and Collier Hills North are just a few of the competitive yet still affordable neighborhoods you’ll hear people talking about. The city expects a 1.2% growth rate in population over the next 5 years, driven by highly skilled white-collar millennials seeking their fortune. They follow supercompanies like Amazon, Anthem and UPS, which are expanding their stake in the city.
If you need more convincing, read on — passive real estate investing in Atlanta real estate isn’t really a hard sell.
Why Invest in Atlanta?
Real estate investors make money investing in affordable locations that grow the population. Experts are in near consensus — this has described Atlanta for the past 10 years and will describe it for at least the next 10.
Affordability
The city remains a relatively affordable place to live and buy. The average home price in Atlanta sits at $16,000 below the national average. Twenty-five percent of Atlanta residents are millennials between the ages of 23 and 38 with a higher education degree.
This bodes well for investors who want secure investments without a lot of turnover. Rent increased in Atlanta in 2020 over 2019 by 1.49% while vacancies remained below the national average.
Population Growth
The Atlanta Regional Commission predicts that the 2040 population of Atlanta will surpass 8 million. The 2020 population numbers 5,803,000, which corresponds to around 2% growth per annum. If you want to sell a home here, you can expect to move the property in 37 days at around 2% below the list price.
The city has room for expansion and plenty of development capital to accommodate this growth. Projects like The Battery and Ponce City Market speak to the expected upward mobility of the projected numbers. Tyler Perry Studios dwarfs Hollywood studios in size and scope and looks to take plenty of business from LA. Smaller investors looking for a solid anchor can find plenty to like in Atlanta.
Attribution: Ponce City Market — an expansive lifestyle center known for trendy dining and events
Jobs
Georgia State University predicts that Atlanta will be responsible for the majority of job growth in the state of Georgia (68,900 new jobs total). The city was one of the first to rebound from the 2008 Great Recession with annual job growth of 2.3%, a rate that holds steady today.
Atlanta has the potential to surpass Silicon Valley as a technology hub. The city is still a hub for commercial transportation that sits squarely in the center of the seminal 75 and 85 interstates, meaning that high-paying blue-collar jobs are available. WorkSource Atlanta also says that the healthcare sector is expanding and Atlanta is adding around 5% more tech jobs than the national average.
Atlanta Real Estate Market Forecast
Middle-class population growth, affordable rent and the economic stability of Atlanta all bode well for its future prospects. Looking forward, one could easily predict that Atlanta will continue to outperform other national real estate hotspots when things return to normal.
Atlanta is still a buyer’s market. Supply outpaces demand by more than 6 months, which usually corresponds to a decrease in home pricing. Zillow reports that around 16% of the listings in Atlanta were sold below their original price. Home appreciation in the next 12 months is expected to increase 4.7%. Experts believe that 3-year real estate appreciation rates hover around 9%.
Investing Passively in Atlanta
You can still take advantage of the growth through more passive channels even if you don’t want to actively invest in Atlanta real estate. Finding the right real estate stocks and learning how to invest in REITs are 2 ways that you can land profits without actually being the landlord.
Alternative investing sites have benefitted from changes to Securities and Exchange Commission (SEC) regulation in crowdfunding guidelines. Companies like DiversyFund have used these changes to make the process of passive real estate investing easy. You no longer need to have $40 million to buy into a $40 million commercial property. You can do it through REITs and stocks. You just need to know how to connect yourself properly and safely to the opportunities.
Take a look at this DiversyFund review to see exactly how you can take advantage of Atlanta real estate without lifting a finger (well, except for the finger that clicks your mouse).
Best Passive Real Estate Investing Platforms
Investing in real estate no longer has to be a difficult, time-consuming event. If you connect to the right platform for your needs, you can buy into global real estate opportunities from your living room. Compare the characteristics of reputable real estate investing platforms to see which one best suits your financial goals.
- Best For:Low Cost Real Estate InvestingVIEW PROS & CONS:securely through Diversyfund's website
- Best For:Accredited InvestorsVIEW PROS & CONS:securely through CrowdStreet's website
The New Hollywood
Real estate investing has always been a great way to build and preserve wealth, and there are few opportunities as wide open as Atlanta real estate. The city boasts a near-perfect mix of affordability and stability for low risk and high upside potential. Whether you’re looking for an idyllic living space or a solid property investment, Atlanta is definitely worth a look.
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