Author: Alex Delaney
The City in the Forest, with 5.5 million residents, is one of the largest metro areas in the country and it continues to grow. By 2020 Atlanta metro area population is expected to climb to 7.3 and more than 8 million are expected to live here by 2040 with the largest influx joining Gwinnett County. People are flocking to Atlanta to join the booming economy generated by local Fortune 500 companies, the world’s busiest airport, and a growth rate of 2.85%.
Home Values: Prices continue to rise steadily in Atlanta, yet homes are still undervalued by 7%, making this a great place to invest in the rental market. The current median home value is $387,500, an increase of 12.4% in the last year with an expectation of further increases by 7.5% in the coming year. Sandy Springs and Marietta are expecting a 3-year value increase of 24%!
Rental values are also increasing due to an influx of people and a building boom that is not keeping up with the demand. The median rent price in Atlanta is $1,842, creating an excellent potential for cash flow.
Neighborhoods: Atlanta is expanding in every direction and has something for everyone: from the millennial preferences for in-town living in Atlanta and Buckhead to the more eclectic neighborhoods of East Atlanta, City of Decatur, and the thriving international flair of Buford Highway and Clarkston, known as the most diverse square mile in the U.S. Cities all over Atlanta are engaging in mixed-use developments as an alternative to the many established residential neighborhoods. This creates a wide spectrum of investment strategies, as lower, middle and upper-income homes are all available for your investment dollars. Gwinnett is expected to be the largest populated county in the coming years, but the fastest growth will occur in Forsyth County.
School Systems: As with any large metro area, school systems depend on local communities. ‘A’ rated schools can be found in the City of Decatur and Cobb County. Gwinnett and Fulton County Schools range into a B+ with Marietta Schools garnering a solid B. To check the area of your interest go to www.niche.com/k12/search/best-school-districts/m/atlanta-metro-area/.
Jobs: An increase of more than 1 million jobs is expected in the metro area by 2040 with the highest increases in the fields of science, health care, retail and education.
Infrastructure: Atlanta has earmarked $300 million to improve its infrastructure, including a clean water initiative that will provide safe drinking water for the next 100 years. A smart corridor is in progress in the downtown North Avenue area. The Atlanta Beltline, a sustainable redevelopment project, will ultimately connect 45 neighborhoods through trails, parks and modern streetcars. More needs to be done to alleviate the traffic problems in the region but progress is being made.
Populations: Millennials prefer renting to buying and they are flocking to Atlanta for the excellent job opportunities, the weather, and the lifestyle offered by this great city. See our blog: American Dream. But don’t forget about other demographics. The aging population is expected to triple to nearly 1.6 million.
In short, as long as you do your research you can’t go wrong investing in Atlanta. For more investment strategies, see our blog: How to Find an Ideal Rental Property