Atlanta real estate market - key stats

For investors, Atlanta offers many opportunities for growth. Both home values and rents are on the rise, annual rental returns are solid, and, compared to other major metros, property taxes are on the lower end. 

Are you considering investing in the Atlanta real estate market? Here’s what you need to know about the city’s housing.

In this article:

• Atlanta home values
• Atlanta median sales price
• Atlanta price per sq ft
• Atlanta real estate inventory levels
• Atlanta median rental prices
• Atlanta rental yield

Snapshot: Atlanta’s rental prospects

Atlanta’s median sales price growth is outpacing that of the nation, and its home values have increased significantly in just the last four years. 

Despite this, the city’s price per square foot is still largely affordable, and job growth and strong interest in the area support solid renter interest moving forward. Atlanta even made Forbes’ list of best cities for renters earlier this year due to its sizable apartments, relatively low-cost rents, and abundant parks.

Key Atlanta real estate market stats

Median sales price

• Atlanta’s median sales price per home increased 19.5% between March 2021 and March 2022. The median price is now $356,374 — up from $298,120 a year ago.
• Median sales prices in Atlanta rose 52% compared to four years ago. The median price in March 2018 was just $234,452.

Median days on market

• Homes in Atlanta sold in a median 17 days in February 2022.
• Homes are selling 23% faster than last year when the median days on market was 22 days. 

Percentage of homes selling over listing price

• More than half of Atlanta homes (50.6%) sold over their original listing price in February 2022.
• The share of homes selling over list price increased 41.3% compared to February 2021, when just 35.8% of homes sold over their original listing price.

Average price per square foot

• The average price per square foot in Atlanta was $256 in February 2022, up 17% in the last year.
• In February 2021, the price per square foot was just $218.

Historical home value trends

Atlanta home values have skyrocketed over the last few years. While the uptick started long before the pandemic emerged, growing post-COVID remote work opportunities only increased interest in this Georgia metro — particularly from buyers in costlier housing markets along the coasts. 

According to the Zillow Home Value Index, home values in Atlanta have jumped nearly 30% in the last year and almost 80% since 2017. Values are up from just $200,827 in March 2017 to $360,679 now. That means if you’d invested in a $300,000 home in 2017, you’d own a home worth nearly $539,000 today — a significant jump in equity in just five years.

Median sales price Atlanta

Atlanta housing sales prices have grown considerably in recent years, according to Zillow. As of March 2022, median Atlanta sales prices clocked in at $356,374 — a 19.5% increase compared to March 2021 and a 52% jump from March 2018, when prices sat at just $234,452. 

If those numbers weren’t telling enough, comparing them to national averages makes the growth even more notable. Nationally, home prices rose 14.9% annually and almost 42% over the last four. Atlanta outpaces the nation on both counts.

How the average home price in Atlanta compares to other metros

Atlanta home prices are on a tear lately, but to truly find the best investment market, it’s important to compare those numbers to other major metros you might be considering. 

According to our analysis, Atlanta’s price growth is slower than red-hot markets like Austin, Texas (which saw prices rise almost 70% in the last four years) and Tampa, Florida (where prices jumped 62.5%). However, Atlanta’s home prices outpaced both Charlotte, North Carolina and Denver, Colorado. In the latter, prices have risen 41.5% since 2018.

Atlanta median price per square foot

When compared to other major metros, Atlanta also claims a pretty affordable price per square foot. At $171.80/sq. ft., it’s cheaper than Austin, Charlotte, Denver, and Tampa — and by quite a bit in some cases. In Denver, for example, you’ll pay a whopping $286 per square foot, while in Austin, it’s $260. 

Still, Atlanta’s price per square footage is on the rise. It’s notched a 24.4% uptick in the last year and a 78.4% jump over the last five years. Price per square foot is rising faster than in Denver (21.1% in the past 12 months) but slower than in all three other metros we analyzed. Tampa has seen its price per square foot jump almost 30% in the just the last year.

Atlanta real estate inventory

It’s no secret that housing inventory has been in short supply across the nation. And Atlanta is no different. The metro has seen available listings dwindle significantly in recent years, notching an almost 15% drop since March 2021 and a 94% decrease over 2018. 

It’s not all bad news, though. Atlanta’s dip in inventory is actually smaller than most other metros we looked at (Tampa’s fell a whopping 36% in the last year), and Redfin has dubbed the Atlanta housing market only “somewhat competitive” as of April 2022. 

Potential properties are out there, and the proof is in the numbers. The metro notched 7,481 home sales in February 2022 — more than Charlotte and Denver combined. Be warned, though: Homes are selling quite a bit faster than they were just last year, so you’ll want to act quickly if you see a property you like. 

In February 2022, homes sold in a median of 17 days — 22.7% quicker than 12 months prior. Compared to five years ago, the median days on market (DOM) is down more than 73%. Homes are now selling faster than in both Austin and Charlotte, though Denver and Tampa properties are moving at a quicker pace (five and nine DOM, respectively). 

Most and least expensive Atlanta neighborhoods

Any real estate investor knows it’s all about location. While choosing the right metro is a good start, you also need to pick the right neighborhood within that city to ensure strong demand and solid returns. 

To guide your property search in the Atlanta housing market, we’ve pulled together the 10 most expensive and least expensive neighborhoods in the area — as well as those that have seen the most and least growth.

10 most expensive Atlanta neighborhoods

1. Tuxedo Park: $2,465,924
2. Arden - Habersham: $2,228,932
3. Kingswood: $2,217,499
4. Mt. Paran - Northside: $2,188,903
5. Historic Brookhaven: $2,095,187
6. Wyngate: $2,068,096
7. Peachtree Battle Alliance: $1,855,467
8. Brandon: $1,773,001
9. Sherwood Forest: $1,761,016
10. Mt. Paran Pkwy: $1,741,512

10 least expensive Atlanta neighborhoods

1. Harland Terrace: $106,026
2. Sandhill-Texas Alley: $118,538
3. Geiger Street: $124,563
4. Short Street: $142,910
5. Harristown: $148,671
6. Nelson Heights: $172,999
7. Rue Royal: $189,123
8. Covington Mill: $191,967
9. Ben Hill Pines: $192,798
10. Leila Valley: $195,978

6 Atlanta neighborhoods where home values have grown the most annually

1. Joyland: 49.76%
2. Nelson Heights: 48.25%
3. Covington Mill: 47.43%
4. Butner-Tell: 46.42%
5. Bankhead: 45.70%
6. Joyland: 49.76%

6 Atlanta neighborhoods where home values have grown the least annually

1. Glenwood Estates: 4.04%
2. Westchester Hills: 6.66%
3. Georgia Tech: 7.09%
4. Geiger Street: 7.20%
5. College Heights: 7.56%
6. Glenwood Estates: 4.04%

Atlanta real estate FAQs

Is it a good time to buy a house in Atlanta?

Yes, it is a good time to buy a house in Atlanta. Home values have steadily climbed in the area for many years, meaning homebuyers will see a good return on their investment fairly quickly. Though the market is competitive, data indicates it may not be as hot as other major metros in the U.S. 

Is Atlanta’s housing market going to crash?

It’s unlikely that Atlanta’s housing market will crash anytime soon. Demand remains strong, and inventory is limited, which will keep the market in check for the foreseeable future. While higher mortgage rates could cut into demand, it’s more likely that price growth would simply slow down as a result — not reverse course and start dropping.

Is Atlanta real estate overpriced?

Atlanta has certainly seen growth in recent years, but compared to many markets, it’s still relatively affordable. As long as demand remains strong, buyers should see their home values grow steadily in the coming years. 

Atlanta rental market trends

There are many factors that influence a metro’s rental market, including jobs, population growth, and even local for-sale housing inventory. For example, when home listings are limited or housing prices rise too much, more locals may be forced into renting. This drives up demand for rentals, as well as the price landlords can ask for them.

Atlanta median rental prices year-over-year change

The hot housing market is definitely trickling down to Atlanta’s rental scene. Median rents in the city have climbed nearly 20% in the last year, clocking in at $1,886 per month as of March 2022. Since March 2017, rents have jumped over 43%.

That last stat outpaces every other major metro we analyzed, as well as the national average. Nationally rents are up just 27% in the last five years and 17% since March 2021.

Prices, of course, vary by rental size. According to ApartmentList, Atlanta studio rentals and four-bedroom properties have seen the most growth, with 43% and almost 52% jumps, respectively. The median rent on a four-bedroom is now nearly $2,100 per month.

Atlanta investment property ROI were 

Despite rising rents, investors seem to be making less than they were in years past. Data from Zillow shows that rental yields are down almost 1% over the year and have decreased more than 5% in the last five years.

Still, the city pulls in solid returns regardless. The typical landlord notched a 6.42% yield in March 2022. While that’s less than the national average of 6.77%, it’s notably higher than what investors in Charlotte, Denver, and Tampa saw for the same month. 

The declines in yield are smaller than in other cities, too. Tampa rental yields dropped almost 19% over the last five years, while Charlotte’s fell 11%.

How landlord-friendly is Atlanta?

Georgia is largely considered one of the nation’s more landlord-friendly states. It doesn’t have rent control laws, the eviction process is simple, and there are no limits on security deposits. 

In Atlanta specifically, tenants do have the option to purchase rental security insurance instead of paying a deposit but only in certain circumstances. 

Atlanta also requires:

• At least 60 days’ notice for a rent increase
• Two late payments (in a 12-month period) before you can evict
• Three days’ notice before a property inspection

Landlords will also need to return a tenant’s security deposit within a month of move-out. 

Property investment taxes in Atlanta

Atlanta claims pretty low property taxes when compared to other major metros. In fact, out of 50 cities analyzed, LendingTree found Atlanta claimed the 15th-lowest median property tax bill in the nation. The typical property owner pays just over $2,100 annually in taxes. 

Keep in mind: This is just a median. As the Atlanta metro spans many counties, each with its own tax rates, this number could vary widely across locations. According to a SmartAsset analysis, the Atlanta counties with the lowest effective property tax rate are Rockdale County (0.66%), Cobb County (0.72%), and Heard County (0.72%).

Georgia also offers a rental property deduction if your expenses on the property outweigh the income you earned from it. If this happens, you can deduct the loss from your total taxable income — up to $12,500 — and reduce your tax burden.

Atlanta neighborhood guide

Price is only part of the equation when tenants are choosing where to live. They also consider things like walkability, school quality, employment opportunities, quality of life, and more. Let’s dive into how Atlanta measures up on these fronts.

Best neighborhoods in Atlanta

Atlanta, as a whole, is a pretty car-dependent town, but there are definitely some communities that are more walkable (and bikeable) than others. Public transit is also fairly accessible in a number of neighborhoods.

According to Walk Score, here are the top spots if you want to invest somewhere walkable, bikeable, or with good public transit:

• Walkability: Georgia State University, Buckhead Village, Sweet Auburn, Peachtree Center, and Midtown rank highest in walk score, according to WalkScore.com.
• Bikeability: Cabbagetown, Old Fourth Ward, Marietta Street Artery, Inman Park, and Sweet Auburn have the highest bike score ratings.
• Public transit access: The highest transit scores are found in Georgia State University, South Downtown, Peachtree Center, Sweet Auburn, and Castleberry Hill.

Keep in mind that investing in the Georgia State University area will likely mean investing in student housing. While this does come with some risk, it also ensures steady demand from local GSU college students.

Best schools in Atlanta

Atlanta is home to a number of well-rated public, private, and charter schools, most of them located in the northern and eastern suburbs of the metro. 

The Buckhead neighborhood is home to the best schools, including Brandon Elementary, which claims a 9/10 above-average score on GreatSchools.org. In the north, the Dunwoody area is also home to a number of well-ranked schools, and in the east, Virginia-Highland and Morningside-Lenox Park also claim public good school districts.

The two top-rated charter schools in Atlanta are the Drew Charter School, located in East Lake, and Kipp South Fulton Academy, located south of the city in East Point.

Atlanta job market

A strong job market means a healthy stream of renter and buyer demand, so it’s important to choose a city where employment and industry are growing. Atlanta is strong on both counts and was even named a top spot for job seekers earlier this year.

Key employment stats, industries

The U.S. Bureau of Labor Statistics shows Atlanta employment is on the rise. The metro saw jobs increase 6.3% in February 2022 — well above the 4.9% national increase. It also ranked sixth among the top 12 metros in terms of year-over-year job growth.

Employment is up considerably in the city’s professional/business services, trade/transportation/utilities, and leisure/hospitality industries. WalletHub ranked it the No. 27  best city for jobs (out of 182) earlier this year. 

Affordability and quality of life

Now, down to brass tacks: Is Atlanta affordable? Does it offer a good quality of life? These are the things that will make or break an investment property, so taking them into consideration is critical. Let’s look at both elements more in-depth. 

How affordable is Atlanta?

The National Association of Home Builders’ Housing Opportunity Index is a good gauge of housing affordability. According to its latest numbers, just under 67% of all Atlanta homes are affordable to someone earning the area’s median income. That share has dropped from nearly 77% at the start of 2020.

It sounds worrisome, but compared to all four other cities we analyzed, Atlanta is actually the most affordable. It’s also more affordable than the national average, which shows just 54% of homes are within reach for the typical earner.

How does Atlanta compare with other places to live?

U.S. News & World Report ranked Atlanta the No. 55 best place to live last year, citing its overall value and strong job market. The city scored a 7.2/10 for jobs, a 6.6/10 for desirability, and a 6.9/10 on value. It scored lowest on quality of life (5.9/10). 

Atlanta also made it on another list: Forbes’ tops spots for renters. According to the publication. Atlanta is the sixth-best city for renters, thanks to its easy-to-access parks, relatively low rent, and sizeable rentals. The ranking took into account other factors, like weather risk data and rent-to-income data, too. One hundred cities were considered.

Life in Atlanta

Atlanta has a lot to offer its residents, including a strong job market, a number of quality schools and universities, and a wide variety of attractions and amenities. The city is home to five professional sports teams, a bustling restaurant scene, and dozens of cultural hotspots, including the Atlanta History Center, the Georgia Aquarium, the Atlanta Botanical Gaden, and the Alliance Theatre. 

Though some neighborhoods are an exception, Atlanta does lack accessible public transit — particularly compared to many larger coastal markets where many residents may be moving from. It also comes with extreme heat and humidity, and traffic, due to the city’s huge reliance on cars, is also a commonly cited complaint.