Commercial Real Estate, Capital, Insurance, Leasing & Management

Q1-22 Multifamily Report: Atlanta

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Atlanta multifamily maintains strong momentum in the first quarter of 2022
Atlanta Multifamily Investment

Although Atlanta’s multifamily investment sales market hit a pandemic-driven low in Q2-20, it quickly recovered in 2021, achieving a record annual sales volume totaling over $18 billion. The market maintained momentum in Q1-22, starting the year with $2.82 billion in sales. Class B properties accounted for a majority of the total sales volume at over $1.3 billion, signifying investor interest in value-add assets. Class A properties accounted for a quarter of this sales volume at $728 million, while Class C properties followed at $715 million. Overall, the market’s performance over the past year is a great indication that investor confidence has returned to the Atlanta multifamily in bold fashion.

Atlanta Multifamily Rent Growth

Rental prices have increased following the pursuit of price trends. The market reflects minimal affordability with Class A at $1.99, Class B at $1.48 and Class C at $1.26. Also, much like prices, the growth trends are moving fast and maintaining speed as we enter 2022. Multifamily rental rates are also rising in Atlanta. 2021 saw steep increases, especially among luxury apartments, and current growth trends are expected to continue. In Q1-22, the price per square foot averaged $1.99 Class A, $1.48 for Class B and $1.26 for Class C. All three property class rent rates saw an average 1.69% rate increase from the prior quarter.

Atlanta Multifamily Market Outlook

Atlanta has always been a go-to location for investors looking to enter the multifamily property market. With over six million residents, there’s no shortage of demand for apartments. As the market continues to recover from pandemic-related challenges, we expect Atlanta to see a large influx of multifamily investment. Workforce housing has been especially popular among investors due to the organic rent growth and value add potential. However, as pricing for value-add properties continues to rise, we are beginning to see demand increase for core assets as well. Overall, we believe the Atlanta multifamily market will continue to see strong transactional volume over the short-term; however, we might see an adjustment as interest rates continue to rise, offsetting yields.

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