Atlanta Records Nation’s Third-Largest Rent Hike
Apartment rent growth in Atlanta has regained momentum recently, stretching to 4.9% in the year-ending 2nd quarter. This was the third-largest annual rent increase among the largest 50 markets nationwide. These recent price hikes in Atlanta came as inventory expanded at an average annual rate of around 2%, with the completion of nearly 10,000 units annually. During the past year, a total of 10,222 units were added. While still sizable compared to long-term norms, that annual completion tally was down about 3,600 units from the cyclical peak from late 2017. Just a few years ago, from 2014 to 2016, annual rent growth levels topped out in the 5% to 7% range, the biggest hikes in the market since the mid-1990s. Annual price increases then dipped to a five-year low of 3% in early 2018, coinciding with the highest supply volumes the market has seen since the early 2000s, before rent growth got back on track more recently. With annual demand levels outstripping new supply over the past year or so, occupancy has tightened, registering around the essentially full mark of 95% for the past four quarters. The market has not been consistently that tight since the early 2000s.