Real Estate Investor Magazine South Africa Real Estate Investor Magazine - May 2017 | Page 55

Atlanta has several major drawcards
Atlanta’s position as a transportation hub and home to
a large number of major U.S. corporations ‒ including
Coca-Cola, Delta Air Lines, UPS and The Home
Depot ‒ as well as several, major medical centers
and universities, has helped fuel the population and
job growth necessary for a market rebound. The area
has lagged somewhat behind other major U.S. urban
centers in terms of the national housing recovery,
but the silver lining is that smart investors have
continued to be rewarded with higher-than-average
appreciation.
Ample opportunities in fix-and-flips, buy-
and-hold and new constructions
Citing figures from NYU Furman Center/Capital
One, National Affordable Rental Housing Landscape
(March 2016), Roofstock said 44% of all renter
households in the Atlanta market were living in
single-family homes, up from 33% in 2006.
An expected increase in rent growth continuing for
the next several years should support yields and rent
increases, Roofstock’s report added.
An increase in renter households is not a trend only
in Atlanta, but it is much more evident here than in
many places across the United States. And analysts
and prognosticators expect the renter population
to continue to grow, even as wages rise and homes
become more affordable.
www.reimag.co.za
Home values, still below their peak, have increased
significantly over the past several years and are
forecast to continue their climb through 2019.
While inventory continues to tighten, there’s ample
opportunity for investors interested in fix-and-flips,
rehabs to buy-and-hold and even new construction
(i.e. build-to-rent).
The suburbs have seen a resurrection of country-
style homes and other properties now in range for
first-time homebuyers.
RealtyTrac figures as of Q1 2017 showed an
improvement in housing affordability in the Atlanta
area, with year-over-year wage growth outpacing
year-over-year home price growth ‒ good news for
flippers.
The median home price in Atlanta continues to
rise, currently sitting at $204,500, which puts median
monthly rent at $1,500.
Older rehabbed properties in the metro area ‒ when
they are well-located and feature ample floor plans
‒ are drawing interest, especially from Millennial
renters who like the access to a lively cultural scene
with bustling restaurants, entertainment and other
amenities.
RESOURCES
Zillow, RealtyTrac, Roofstock, NYU Furman Centre
MAY 2017 SA Real Estate Investor
51