How to take advantage of Atlanta’s economic and housing market trends in 2016
The biggest driving factor for growth in the housing sector is the city’s expanding economy, which has spurred job growth.
Here are some highlights of the city’s economic situation:
- There has been significant expansion in the professional and business services sector.
- National businesses have been relocating to the city.
- Unemployment rate dropped to 5% in 2015, the city’s lowest in 10 years.
- Falling gas prices are increasing residents’ buying power without negatively affecting the economy.
- Metro Atlanta’s median household income is now 10% higher than the national average.
- More workers from other states have been coming to Atlanta for job opportunities.
- One-third of Atlanta’s population are millennials, higher than the national average of 1/4 of the population.
- With a younger and highly qualified workforce, more businesses are likely to transfer to or open in the city.
The following characterize Atlanta’s housing market at present:
- Home prices have been steadily increasing as demand from a growing workforce increases.
- Despite rising prices, housing costs remain affordable. Median home price is 1.4 times more than median income, which is lower than the national average of 1.7 times more than the median income.
- High demand has led to reduced inventory, particularly in foreclosed properties, but improvements in construction will improve supply.
- Home price increase will continue but at a slower rate, thanks to new construction.
- In the longer term, demand for housing is seen to continue rising as the city’s population and income continue to grow. This could lead to above-average appreciation of home prices.
How can you take advantage of the current favorable conditions in Atlanta’s housing market? Here are some tips to consider:
Sell your home
Now would be a great time to sell while demand is high. Essentially, Atlanta has become a seller’s market, but it’s predicted to eventually balance out as supply catches up with demand.
With home prices expected to continue rising, more people are eager to buy now while costs are still relatively lower. You can expect excellent offers for your home.
Buy a home
With Atlanta’s rosy economic prospects, making the city your home may just be one of the best decisions you can make in life. While home prices are currently increasing, keep in mind that they are likely to rise even more in the coming months. You will want to invest in an Atlanta home now while home affordability rates are still lower than the national average.
In particular, consider buying in Metro Atlanta suburbs like Marietta, Woodstock, Kennesaw and Douglasville where the prices are generally lower than downtown Atlanta, but the quality of life is remarkably high.
Invest in a rental property
With more millennials and fresh graduates coming to Atlanta for employment, rental properties are proving to be highly profitable investments. Many in this age group are looking to rent rather than buy as they still have not saved enough for a down payment. Additionally, the convenience and non-permanence of renting are major draws for millennials.
Rental prices in Atlanta are at least 50% more than mortgage payments, giving rental properties an excellent profit potential.