Atlanta Apartment Market Expected to Perform Well in Early 2017

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Atlanta Apartment Market Expected to Perform Well in Early 2017

Late Moderation Forecasted

By Jay Denton | Wednesday, December 21, 2016

The Atlanta apartment market, still among the nation’s strongest in November 2016, is expected to continue its high performance in the first quarter of 2017 but
 moderate later in the year, according to Axiometrics apartment data.

While Atlanta’s 4.6% annual effective rent growth in November follows the 2016 moderation trend, Axiometrics forecasts rent growth to climb back above 5% in the first quarter of next year before falling to 2.2% in the fourth quarter of 2017.

Though demand is expected to remain relatively steady next year with job growth at or just below the October level of 2.7%, the 14,200 new apartment units identified for delivery in 2017 will lift the pace of supply well above demand. 

Atlanta was a late-emerging market after the recession, and new supply didn’t really start coming in until 2013 and 2014. The peak will come next year as pent-up demand is met and exceeded. The competition to fill units will be fierce, and landlords will have little leverage to push rents.

In researching Atlanta as compared to the national market, Axiometrics reported data as follows:

The rolling two-year data for rent growth and occupancy in Atlanta signal relatively steady rent-growth performance and volatile occupancy.

 

Among Atlanta submarkets, the following recorded the highest annual effective rent growth in November 2016. The Atlanta/Fulton submarket, which includes Downtown and Buckhead, had 2.9% rent growth.

 

Jay Denton

Jay Denton

SVP Analytics

Jay Denton leads Axiometrics’ analytics team of economists and researchers. Denton’s many accomplishments, combined with a devotion to cutting-edge data, have been invaluable in his direction of Axiometrics’ research and analytics development platform.

Denton and his team provide incisive statistics and exceptional analytics that assists clients in making productive and profitable investment decisions when it comes to buying, selling, building and owning apartment and student housing properties.

As one of Axiometrics’ pioneers, Denton helped grow the company into a nationally recognized market research firm known for its trusted and unspoiled apartment market and student housing solutions. Throughout his tenure, Denton has introduced and perfected state-of-the-art research methodologies, processes, products and scheduling to help ensure the quality, consistency and timeliness of the information collected. Much of Denton’s innovations became the gold standard by which other companies endeavored to duplicate.

Denton works closely with Axiometrics clients—ranging from REITs, to large owners and operators, to high net-worth syndicates—on areas including acquisition and development studies, supply and demand forecasts and market selection.

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