MARKET ANALYSIS
ATLANTA
ing power in the Atlanta area that much higher pay would command in more expensive areas. As a result, real estate investors may find comparisons like Woo’s relevant when deciding where to leverage their own investment capi- tal, but the local population may still be facing the same affordability issues found in more expensive areas. HAS THEWINDOWCLOSED ON INVESTING IN ATLANTA, GEORGIA? Atlanta may be as close as it gets to an “eternal city” for real estate investing as thanks to a relatively low cost of living, a longstanding statewide tradition of busi- ness-friendly incentives and legislation, and the presence of Hartsfield-Jackson airport on the south side. The city known for its sprawling, sometimes-haphazard growth patterns and the ability to literally come back from the ashes (not only was it razed during the Civil War but a vital overpass in its main arterial interstate, I-85, recently burned all the way through and was rebuilt in a matter of months) is unlikely to become an unfriendly location for real estate investors any time soon. However, the affordability issue cannot be ignored, particularly if you are a wholesaler or flipper and rely on your ability to work in the margins of the deal in order to generate your returns. Watch the local market carefully. Identify neighborhoods where homes are selling at or above listing price. Look for areas with older homes that might be updated to create attractive, modern, affordable alternatives for new homeowners and Atlanta’s healthy population of young professionals. Keep an eye on streets and even counties where other investors are working successfully but have not yet created artificial investing bubbles. Identify places you can work in the real-world market rather than where you will find yourself fighting with other investors for properties and driving prices beyond what local buyers can afford. Last year, we wrote, “Atlanta is among the best-posi- tioned in the country for real estate in the next five years, and wise investors are moving rapidly to take advantage of it.” Those wise investors make logical, considered de- cisions about investing rather than getting swept away or scared off by local hype and headlines. •
headquarters and facilities in Atlanta. As far as job opportunities and population growth go, Atlanta is still going strong. Hartsfield-Jackson Airport remains the highest-traf- ficked airport in the world, and the luxury car industry has taken note of Porsche’s headquarters in the area with other industry players, such as BMW, expanding their operations into the metro area as well. Both the population and the jobs mar- ket are booming and show no signs of slowing. So will Atlanta’s real estate market continue to grow in both size and median value despite the area’s affordable-hous- ing pain? It seems likely. Apartmen-
The Coca-Cola Company [above] is one of seven Fortune 100 companies headquartered in Atlanta.
tList data scientist Andrew Woo recently observed, “At- lanta is still more affordable than most other large cities across the country,” noting that Atlanta median rents are about a third of San Francisco’s. However, one of the reasons Atlanta attracts employers is that the local cost of living is relatively low. Wages in the southern city may be comparably lower to pricier metros even though those wages command the same level of buy-
for first-time buyers becomes available, the market could continue to strangle.
cent nickname, “The Hollywood of the South.” We also observed the presence of national corporations with U.S. and world headquarters located in the area and a relatively low cost of living creates a “solid, steady, and growing popula- tion of well-heeled, steadily-employed homebuyers and renters” in the metro and surrounding areas. Porsche, Delta, and National Cash Register (NCR), to name a few, still maintain major
CHECKUP: WHATWE SAID IN 2016
In the original article, we noted that Atlanta investors were well positioned to profit off the city’s growing film industry, dominated by Tyler Perry Studios, which has led to the city’s re-
Carole VanSickle Ellis is the editor of Think Realty Magazine. She can be reached at cellis@thinkrealty.com.
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