Atlanta Q2 Multifamily Market Insights: Consecutive Vacancy Declines Highlight Market Strength
Highlights:
- Multifamily operating conditions strengthened in Atlanta during the second quarter. Vacancy declined and rents rose, continuing trends that have been in place for the past few quarters. Investors responded to the improving fundamentals by increasing acquisition activity.
- Vacancy dipped 10 basis points in the second quarter, reaching 4.5 percent. The rate has tightened in each of the past three quarters and is down 110 basis points year over year.
- Rents rose in the second quarter, but the rate of increase was slower than in previous periods. Asking rents reached $1,557 per month at midyear, 17.5 percent higher than one year earlier.
- Sales velocity accelerated in the second quarter, and investment activity is running ahead of the 2021 pace. Cap rates were below 4 percent on average in the second quarter but are expected to trend higher in the second half of 2022.
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