Market Review The Atlanta apartment market consists of 409,034 units in eighteen geographic concentrations ranging in size from the 37,788 unit North DeKalb submarket into the South DeKalb submarket, which accounts for 4,845 units. At the ten-year period beginning with Q2 2009, the brand new submarket has experienced the best introduction of new stock, 14,206 units, amounting to 23.4percent of new market rate rentals added to the marketplace.
Mean unit costs in the subway are as follows: one bedrooms $ 1,109, studios $998, two bedrooms $ 1,268, and 3 bedrooms $ 1,456. Since the start of Q2 2009, the metro as a whole has recorded an yearly average growth of 3.7 percent. Effective rents, that exclude the value of concessions offered to potential tenants, also progressed by 0.6% during the first quarter. The rates of change reveal that landlords have succeeded in raising rents while keeping a stable connection between requesting and efficient rent values. Throughout the previous four quarters, in asking lease optimistic movement was listed in all half of the submarkets of the metro. Competitive Lease, Household Formations, AbsorptionNet new first quarter household formations from the Atlanta metropolitan region were 9,850. In most cases, a portion of the recently gainedfamilies become tenants in market flat units; thus, it’s wise to consider longer-term economic and demographicfunctionality as an effect upon the current requirement for apartment units. Since the beginning of Q2 2009, family formations in Atlanta have averaged 1.3% each year, representing the average yearly addition of 27,100 households. Over the previous four quarters, market absorption totaled 8,176 units, 10.4% higher than the average annual absorption rate of 7,404 units recorded since the start of Q2 2009.
OutlookBetween now and year’s end, 7,782 units of aggressive apartment stock is going to be introduced to the metro, and Reis quotes that internet total absorption will be positive 6,166 units. As a result, the vacancy rate will drift upward by 0.3 percentage points to 5.2%. Construction activity is expected to continue during each of the two years, through which a total of 9,497 units is estimated to be introduced to the marketplace. Net new home formations at the subway level throughout 2020 and 2021 are expected to average 2.0percent annually, sufficient to ease an absorption speed averaging 3,820 units each year. Since this amount doesn’t exceed the forecasted new construction, the market vacancy rate increases by 30 basis points to complete 2021 in 5.5%. Between now and year-end 2019 asking rents are expected to climb 4.2percent to a level of $1,278, while effective rents will rise by 4.3% to $1,200. On an Real Estate Data Services annualized basis, inquiring and effective rents are projected to advance at a speed of 3.1% annually end 2021, reaching average prices of $1,359 and $1,275 each unit, respectively.
Reis supplies commercial real estate data and analytical instruments to property professionals via its Reis Services subsidiary. Reis Services, including its predecessors, was founded in 1980. Reis asserts a proprietary database containing detailed information on commercial properties in metropolitan markets and areas across the U.S.. The database includes information on housing, office, retail, warehouse/distribution, flex/research & improvement, self storage, seniors housing properties and flat, and is used by real estate investors, lenders and other professionals to make informed funding, selling and buying choices. Additionally, Reis information is utilized by equity and debt investors to assess, quantify and manage the risks of default and loss associated with mortgages, possessions, portfolios and real estate. Its advice services are now provided by reis to a number of the country’s top lending institutions, equity appraisers, brokers and investors.