Average rents for Atlanta apartments declined for the second straight month in December, and the rate of year-over-year rent increases was almost two percentage points lower in 2016 than it was it 2015, according to Axiometrics, the leader in apartment and student housing market intelligence.
Atlanta’s annual effective rent growth was 4.4% in December, down from the 6.2% recorded in December 2016. Though job growth has remained steady, landing at 2.6% in November, the amount of new supply delivered to the market increased to 9,479 new units. The urban core Atlanta/Fulton submarket received the most new units among the nation’s submarkets last year, with 4,530 new apartments opening for leasing.
“The new supply has definitely had a moderating effect on Atlanta apartment market performance,” said Jay Denton, Axiometrics’ senior vice president of analytics. “The good news for investors and owners is that job growth has not declined significantly, as it has in other markets, tempering the rent-growth moderation.”
Atlanta-Sandy Springs-Roswell Metropolitan Statistical Area (MSA)
In researching Atlanta as compared to the national market, Axiometrics reported data as follows:
| Dec. 2016 | Nov. 2016 | Dec. 2015 | |
| Atlanta | |||
| Average Rent | $1,107 | $1,112 | $1,060 |
| Annual Effective Rent Growth | 4.4% | 4.6% | 6.2% |
| Occupancy | 94.0% | 94.3% | 94.2% |
| National | |||
| Average Rent | $1,272 | $1,278 | $1,246 |
| Annual Effective Rent Growth | 2.1% | 2.4% | 4.3% |
| Occupancy | 94.5% | 94.6% | 94.8% |
The rolling two-year data for rent growth and occupancy in Atlanta signal relatively steady rent-growth performance and volatile occupancy.
The Submarket Report
Among Atlanta submarkets, the following recorded the highest annual effective rent growth in December 2016. The Atlanta/Fulton submarket, which includes Downtown and Buckhead, had 2.5% rent growth.
| Ranking | Atlanta Submarket | Effective Rent Growth December 2016 |
| 1. | Bartow County | 9.2% |
| 2. | Clarkston/Stone Mountain | 9.2% |
| 3. | I-20 West | 9.0% |
| 4. | Coweta County | 9.0% |
| 5. | South Gwinnett | 7.5% |
About Axiometrics
Axiometrics’ expertise is monitoring and reporting on the apartment and student housing markets, providing an in-depth view of volatile market trends. Axiometrics’ granular data-collection methods and thorough analysis help clients make profitable – and wise – decisions.
To learn more visit www.axiometrics.com, follow @Axiometrics or on LinkedIn, or call 214-953-2242.
