Atlanta Q2 Multifamily Market Report: Investment Activity Spikes as the Local Economy Bounces Back

Highlights:

  • The Atlanta multifamily market improved during the second quarter. The pace of rent growth accelerated, fueled by absorption that is well ahead of last year’s pace. Vacancy held steady but should tighten in the second half, while an increasing number of properties changed hands at higher prices.
  • Vacancy has been steady in recent quarters and was 5.6 percent at the midyear point. During the past 12 months, the rate has increased 50 basis points.
  • Rents in Atlanta began to gain momentum in the second quarter, following a few quarters where rents posted only modest gains. Asking rents ended the quarter at $1,325 per month, up 3.4 percent from one year earlier.
  • The local investment market recorded a sharp rise in activity during the second quarter. Sales velocity surged and prices pushed higher. The median price to this point in 2021 is up to $144,200 per unit, while cap rates have compressed to 4.6 percent.

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