Slowdown Persists Across Fundamentals
Halfway through the year, an overall softening continued across multifamily fundamentals in the metro, according to the latest Atlanta multifamily market report. Rent movement remained negative, with the average advertised asking rent down 0.1% on a trailing three-month basis through June, to $1,638. Year-over-year, Atlanta posted the second-largest decline among major U.S. markets, with the average down 3.6%, as reported in the national multifamily outlook. Meanwhile, the national rate increased 0.6%, to $1,739, over 12 months. Atlanta occupancy also slid, down 80 basis points year-over-year, to 92.4%, in May.
In the 12 months ending in April, Atlanta employment expanded 1.1%, adding 38,800 net jobs and trailing the 1.4% U.S. rate. Unemployment stood at 3.4% as of May, according to data from the Bureau of Labor Statistics, below the national average (4.0%) but lagging the state (3.2%). Two sectors lost 23,800 jobs combined over 12 months—trade, transportation and utilities and information. Meanwhile, job gains were highest in education and health services (17,500 jobs) and government (16,100 jobs). Meanwhile, work continues on several billion-dollar projects, but Rivian Automotive paused the construction of its $5 billion truck factory.
Developers delivered 5,649 units in 2024 through June and had another 36,575 apartments under construction, most of which were in the upscale segment. Meanwhile, transaction activity remained slow, totaling $1.2 billion during the first half of the year, for a price per unit that declined roughly 10%, to $167,424.
Read the full Yardi Matrix Atlanta Multifamily Market Report: August 2024
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