MARKETS & TRENDS
HOT MARKET
Market Spotlight: Atlanta
A SOUTHERN MARKET THAT IS ANYTHING BUT OVERHEATED
by Fred Heigold III
POPULATION GROWTH The 2019 Census/ACS data shows the Atlanta MSA is the 9th largest MSA in the U.S. with just over 6 million residents. This metro area added nearly 75,000 residents be- tween 2018 and 2019 (a 1.2 percent increase), and in the previous five years increased 7.6 percent with over 425,000 new residents. JOBMARKET The Atlanta MSA economy is the 10th largest in the U.S. Although it has taken a hit due to COVID-19 re- lated issues, the overall job market is still one of the top markets for diverse professional and high-tech jobs. As many as 16 Fortune 500 companies are headquartered here, including Home Depot, UPS, Co- ca-Cola and Delta Air Lines. The favorable business climate and ample opportunities in vari- ous industries has helped Atlanta
RentRange®, an industry lead- er in market data and analytics for the single-family rental (SFR) housing industry, found in its recent data report that the Atlanta-Sandy Springs-Al- pharetta, GA Metropolitan Statistical Area (Atlanta MSA) is a large-sized market that has been steadily growing within its means. The market is one of the most affordable in the U.S. and offers stability in the uncertain economic environment with low downside risk. Additionally, it currently offers a balance of appreciating properties with good cash flow for buy-and-hold investors. The Atlanta MSA has been a high-performing market and a favorite amongst inves- tors for many years. It should continue to progress and build upon its existing growth for the foreseeable future.
become one of the fastest-growing labor markets in the U.S. Low cost of living and a still affordable rental and housing market will continue to attract employers and new resi- dents. Like all major metropolitan areas, the pandemic continues to affect the Atlanta MSA. According to the BLS MSA-level Employment Report (through May 2020), the Atlanta MSA has lost nearly 10 percent or 283,000 jobs between February and May. Some job industries have been more resilient, but this represents nearly the entire job gains from the last five years. The June 2020 BLS National jobs report was better than anticipat- ed, showing hope for a rapid labor market recovery. National statistics indicate the worst is over with a 3.6 percent (4.8M) net increase and a 21 percent bounce in the leisure and hospitality sector.
Job categories in the Atlanta MSA through May 2020 are as follows:
MAY 2020 EMPLOYMENT
5 YEAR % CHANGE
INDUSTRY GROUP
SHARE OF JOBS
VS FEB 2020
1 YEAR % CHANGE 5 YEAR CHANGE
Trade, Transportation, and Utilities Professional and Business Services Education and Health Services
572,000 497,400 353,100 326,100 203,200 173,200 151,400 125,800 90,200 88,700
21.1% 18.4% 13.0% 12.0%
(32,300) (51,200) (31,800) (12,600) (98,900) (5,400) (20,700) (3,900) (11,100) (15,600)
-4.38% -8.82% -4.28% -3.12% -34.43% -1.98% -11.93% -3.70% -9.44% -14.55%
19,000
9.28% 10.49% 20.6% 4.99% 10.58% 10.73% 11.39% 20.9% 8.23% -8.08% 14.29%
900
32,500
Government
3,500
Leisure and Hospitality
7.5% 6.4% 5.6% 4.7% 3.3% 3.3% 0.1%
(70,000) 11,900 (3,100) 18,600 (3,400) (7,800)
Financial Activities
Manufacturing Construction
Information
Other Services
1,600
100
0.00%
200
Mining and Logging
TOTALS
2,710,100
(283,400)
(21,100)
86 | think realty magazine :: september 2020
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