The rental market in Atlanta has heated up. And, as a result, this has positively affected rent growth for the entire metro area as people are forced to move further in order to find affordable, yet conveniently located, housing to rent.
Here are some recent statistics for the national rental market, including where the Atlanta and North Georgia markets fall:According to Zillow, Atlanta currently ranks fifth in the nation in rent growth over an annual period, behind red-hot markets in Sacramento, Riverside CA, Seattle, and Minneapolis-St. Paul.
The largest median rental rates in the country are: San Jose, CA ($3,514); San Francisco, CA ($3,412); LA-Long Beach-Anaheim ($2,746); San Diego, CA ($2,548) and New York/Northern New Jersey ($2,401). Atlanta ($1,394) ranks number 14 in this category. Nationwide median rent is $1,445, per Zillow.
Cities experiencing the most rapid rental growth in the country since 2010 are San Jose (51.3%); Oakland (51%); San Francisco (48.6%); Denver (46.9%), Portland OR (44.5%) and at #10, Atlanta (35.1%). The national average for rental rate growth is 28.5%. Source: REALPAGE.com.
What's behind the Atlanta area's rent growth?Increases in rental rates are attributable to the burgeoning housing market in many growing metropolitan areas as growing populations add pressure to the rental market. Prospects for first-time home buyers in these areas are generally unfavorable. This means many buyers are forced to rent for longer periods of time while they accumulate the financial resources for home purchases. For example, in Atlanta, home purchase prices have risen 8.7% in the past year, which is a much faster pace than wage growth.
Increases in demand and pricing for rentals also means growth in the construction of new rental properties. Without this effect, rent growth in many metro areas would be even greater. According to REALPAGE, national rental rates have been increasing annually now for eight consecutive years.