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Downtown Atlanta Lease Rates are Expected to Increase

By August 24, 2018 July 4th, 2019 No Comments

Georgia Hard Money Lenders

We searched high and low to compile the most complete list of Georgia Hard Money Lenders. We’re constantly updating the lender information like loan rates and borrower qualifications to keep the list up to date. If you’re looking for a financing partner in Georgia, you’ve come to the right place. To read a comparison of the top national hard money lenders, read our buyer’s guide. To see lenders in a different state, visit our National Hard Money Lender Directory homepage.

Here are 10 insights on Georgia real estate market trends, straight from the pros:

-Robert Mulcahy, Vice President, Angel Oak Prime Bridge

Prices increase steadily from 3% to 8% in some markets since 2008. The typical markets have become competitive for inventory and this has driven second level markets. Atlanta’s housing inventory is aged, offering great opportunities for investors. Another development driving opportunity is Atlanta’s Beltline transportation project, which has opened up tremendous opportunities for investors in several markets. The fix-to-rent market in Atlanta is also strong, as the demand for 1-4 unit rental homes has outgrown the desire for apartments.

-Anita Clark, Owner & Realtor, Selling Warner Robins

All of the Houston County GA real estate markets are smokin’ hot right now, especially for homeowners looking to sell their homes. With a shortage of inventory in each of this counties’ six communities, homes that are market-priced and properly maintained are selling extremely fast. Even properties that are marginally overpriced and outdated are getting long looks. That puts a burden on buyers to preview homes quickly and make firm decisions directly after seeing a property. Any delay and they may miss out as many homes in Houston County are experiencing bidding wars. That trend should continue short-term and may last the rest of the year. Time will tell.

-Cedric Matheny, Broker, T. Dallas Smith & Company

The re-urbanization of Atlanta is causing many potential investors to come back to the core of the city. In the next three to five years, Atlanta will be an MSA comparable to Los Angeles, Chicago, and New York. At the center of the Atlanta ascension is downtown. Major market changers like Mercedes-Benz, the Beltline, and Georgia State have made downtown Atlanta their home base with more large global companies on the horizon. Most attractive in the past has been the lower lease rates. Now, lease rates are increasing year over year. In fact, in the past 12 months, rates in the downtown area have increased more than 12% and are projected to continue the upward trend. Potential investors who are interested in this market should invest now.

-Bruce Ailion, Realtor & Attorney, The Ailion Team

Single family housing rentals under $1,250 per month remain strong. Rents are rising more than 5% per year. Turnover is low with 4% to 5% annual increases because tenant find they cannot rent a similar property for lease than the increase. Many investors are selling off properties starting with the lower price range. Higher priced properties are more stable and tenants tend to take better care of the property.

-Parker Stiles, Founder, Barrington Acquisitions

One great place in Georgia to invest right now is East Cobb. The schools are amazing, new construction is going up everywhere you look, and it has a high appreciation rate. Homes that are at a minimum, “move in ready” and at a maximum, updated and modern, are typically going under contract in less than 5 days, closing shortly after. Be careful, however, as to not buy just based on appreciation, as we are overdue for another market correction, and no one knows when it’s coming.

-Rich Fettke, Co-Founder & Co-CEO, RealWealth Network

Atlanta is one of the strongest real estate markets today, offering investors an affordable investment, high cash flow, and a strong opportunity for equity growth. Atlanta has been experiencing significant job growth and population growth, but there are still good investment opportunities to be found if you know where to look. It’s still possible to purchase investment homes for around $127,000 or less that can rent for about 1% of the purchase price.

-Brian Dally, Co-Founder & CEO, Groundfloor

Fix and flip activity in Atlanta remains robust, even in a hot real estate market. In the past, one could buy properties fairly cheap, minimally fix them up, and sell them quickly for a good profit. During the past three years, however, we’ve seen acquisition costs rise, requiring flippers to do more extensive work in order to realize a higher final sales price. For example, in 2016 the average renovation budget of our Atlanta flippers was about 31% of the total loan amount. In 2018, we’re now seeing the average renovation component increase to over 45%. Despite this trend, significant opportunities remain for skilled developers, and it makes it all the more necessary to have a flexible lending partner.

-Marco Santarelli, Founder & President, Norada Real Estate Investments

You can expect solid appreciation values for the rental properties in Atlanta. The average number of people moving to Atlanta every day is 500, which is the reason why demand is high. If there’s a high demand of units, the expected returns are also expected to be high. The returns will keep on appreciating and given that real estates are assets, profits will also continue to grow.

-Allison Bethell, Staff Writer, Fit Small Business

The Atlanta-Sandy Springs-Marietta metro area ranked #7 on Forbes’ list of 20 best housing markets to invest in 2018. According to the report, homes in this area are undervalued by 7% compared to the historic ratio of price and local income. The average home price was $234,249 and one-year home price growth is at 8%.

Bottom Line

Georgia is one of the best places that offers various opportunities and a high earning potential for real estate investors. There’s a high demand for rental properties due to increased population and low inventory – for this, rent prices continue to rise. Home values are also trending upward, but most prices are still relatively below income levels, giving more room for growth and improvement.



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