Should you invest in Atlanta?
If the answer to that questions is yes (hint: it is), where in Atlanta should you buy a real estate investment? The city is huge and growing. There’s a lot of diversity in the real estate market here.
Atlanta is a great market to invest in rental homes. Whether you’re a local investor looking to make your first purchase or an out-of-state investor looking for new markets to support a growing portfolio, you’ll find a lot of benefits to buying property here.
If you’re thinking about vacation rentals, we’ll steer you away from those and more in the direction of long term leases and residential real estate. Atlanta is making it harder and harder for those short term homes to be rented out, and in the end, you’ll earn more long-term ROI with a stable rental that’s occupied by the same tenants for at least a year.
We’re also looking specifically at single-family homes. This is the fastest growing part of the Atlanta real estate market. There are plenty of great reasons to invest in multi-family homes as well, including duplexes and small buildings with three or four units. But, when we’re thinking about ideal Atlanta neighborhoods, we’re thinking about the neighborhoods with single-family home rentals.
Here’s what we know about Atlanta’s real estate market and which neighborhoods are best for you.
Why Invest in Atlanta Real Estate
Atlanta has been growing steadily over the last decade, and it’s managed to sustain that growth. The metro area is getting larger and more people are moving into Atlanta. This appeal has to do with the economic opportunities that are here. The fact that remote work has become normalized also allows people to live anywhere, no matter where that job is based. Atlanta is attractive to a lot of remote workers.
- Atlanta’s Growing Economy and Employment Opportunities
Atlanta has everything it needs to continue doing well economically. There’s a lot of industry, and there’s a lot of culture. Atlanta has fantastic infrastructure, diverse neighborhoods, lots of education, and even professional sports, arts and entertainment, and a major airport. Major employers in Atlanta include Coca Cola, Delta Airlines, CNN, and AT&T. There are plenty of small businesses coming to live in and around Atlanta as well.
The strength of Atlanta’s economy has created a strong rental market.
- Population Growth in Atlanta
The economy isn’t the only thing growing in Atlanta – the population is also growing. Plenty of people are moving to Atlanta, and this inbound influx is always a great indicator of a strong rental market when you’re trying to decide where to invest in rental property.
A lot of the new arrivals in Atlanta aren’t buying right now, thanks to rising interest rates and mortgages being more expensive, generally. This gives owners and investors a large pool of well-qualified tenants.
- Rents have Risen in Atlanta
Rents are going up in Atlanta, and that’s good news on its own. This sets up owners for great cash flow and appreciation. That’s because Atlanta is not a cost-prohibitive market to enter. It’s not New York or Los Angeles. There’s tremendous potential for increased value. When you buy a property at a reasonable price, you can invest in upgrades and updates that will only add value to the rental home as the years march on. While your property is increasing in value and the rents are going up, your tenant continues to contribute to the mortgage and other expenses with their rental payments.
The next questions any investor would ask are: What type of property should you buy, and where should you buy it?
Invest in Atlanta Single-Family Homes
If you’re interested in multifamily housing, we’ll try to talk you into duplexes, triplexes, or quads. Otherwise, our advice is to look for single-family rental homes.
Tenants are looking for the space and privacy that comes with a single-family home. Many of them are working from home or attending school online. They want dedicated workspaces, great Wi-Fi, and the quiet that’s required to get their work done; no one on a Zoom call wants to worry about their loud neighbors right next door.
Investing in single-family homes can also deliver some great appreciation. Some statistics put Atlanta’s appreciation rate at 70 percent for the last ten years. Its annual appreciation rate has been averaging at 5.55 percent, which means your ROI is going to be impressive, especially with single-family homes.
The Fun Part of Investing: Choosing Atlanta Neighborhoods
Tenants seeking single-family homes or condos are going to look for a neighborhood in a good school district that’s close to shopping, dining, and entertainment. Research has shown that even if tenants don’t have school-aged children, they still want to be in a good school district.
Tenants will also appreciate being close to commuter routes, and conveniences such as their favorite grocery stores.
Here are some of the neighborhoods we recommend:
- Buckhead. One of the largest and most popular neighborhoods in Atlanta, this is an ideal area for a single-family home investment. You’ll find established neighborhoods, several HOA communities, and a welcoming, residential feel. The neighborhood includes some of Atlanta’s best restaurants, upscale shopping opportunities, and highly rated schools. Downtown Atlanta is a 15-minute drive.
- Midtown Atlanta. The Midtown neighborhood is just north of downtown Atlanta, and a desirable location for good tenants who appreciate culture, art galleries, and easy proximity to nightlife. This area is attractive to professionals who work for some of the corporate headquarters located here. Schools are great and some of your single-family investment homes will be historic Victorians and Craftsman-style bungalows.
- Morningside – Lenox Park. Just 15 minutes from downtown, Morningside-Lenox Park is an ideal choice for investors seeking single-family homes. The streets are leafy and there’s plenty of nature surrounding the neighborhood. Great schools, parks, and even Emory University are nearby.
Obviously, the neighborhood that’s best for you will depend on your investment goals. Let’s talk about those and show you some areas where you next best investment property might be. Contact us at Silas Frazier Realty.
Silas Frazier Realty serves rental property owners in Atlanta, Snellville, Stone Mountain, Lilburn, Conyers, Smyrna, Marietta, Lithonia, Jonesboro, McDonough, Vinings, Brookhaven, and Tucker.
