Real Estate IQ takes a visit to the “Empire State of the South” and reconnoiter its viability for real estate investing
“He’s leavin’ (leavin’), On that midnight train to Georgia”
As inviting as the song Midnight Train to Georgia goes, Gladys Knight & the Pips interpreted the 90’s hit in perfect harmony and expressed the innate charm of Georgia to be a most ideal place to live.
Also nicknamed as the “Peach State,” Georgia is strategically located in the vibrant southeastern part of the U.S., and is the 24th –largest in area and eighth-most populated state in the country. Georgia is bordered by Florida, Alabama, Tennessee, North and South Carolina, and the Atlantic Ocean, and is home to more than 10.8 million people.
Atlanta is the capital of Georgia, and with a population of about six million in the metro area. It is also the state’s largest city and biggest real estate market. Other major cities in Georgia include Augusta, Columbus, Macon, and Savannah – the oldest city in the state. The Atlanta metropolitan area, with an estimated population of more than 6 million people in 2019, is the 9th most populous metropolitan area in the United States and contains about 57% of Georgia’s entire population.
Housing costs that are below the U.S. average, low taxes, and an affordable cost of living make Georgia a great place to live and invest in real estate.
When it comes to thriving metropolitan areas with relatively reasonable home prices, Atlanta is a serious contender. Boasting a strong economy, tree-lined neighborhoods, vibrant culture and urban walkability, Georgia’s state capital is a place where newcomers put down stakes and locals never leave.
When looking at Atlanta through a real estate lens, the numbers come up big. It’s a city with an incredible amount of upside. All these and more plus the kind of life in Georgia and the pro-business environment of the state make Georgia still a great place to invest in real estate in 2020 and beyond.
Here are the top reasons to invest in the Atlanta real estate market:
Between 2018 and 2019, Georgia had a net population gain of nearly 200,000 residents, according to the Governor’s Office of Planning and Budget and is one of the fastest growing among all 50 states in the U.S. 500 people move to Atlanta every day and 8 million people are expected by the year 2040 (Atlanta Regional Commission).
Atlanta has shown promising population growth and employment, which are two signs of a healthy real estate market. Earlier this year the Atlanta Journal-Constitution
reported that Georgia ranks #13 in job growth and #12 in overall growth among all 50 states. The strong job market in Georgia is due to a variety of factors including the state’s pro-business environment, business incentives, well-educated workforce, and Georgia’s status as a center of innovation.
Real Estate Market
Home values are getting hotter in Georgia, according to MoneyWise. Although property values in the state are high by historical standards, homes in Georgia are still very affordable compared to what the typical house is worth in other parts of the U.S.
Strong Renters’ Market
A recent article from FOX Business reports that Millennials are buying houses just for the rental income. . It would be the best option for novice real estate investors looking for a steady rental income. Atlanta is a favorite place to live in for millennials who prefer renting over owning. In the last five years, Atlanta’s job growth averaged 2.3 percent annually, outpacing the national average of 1.6 percent. The attractive cost of living and a multitude of jobs in various industries has made Atlanta one of the hottest residential and labor markets in the country.
Historic Price Changes & Housing Affordability
Historic price changes and the affordability of housing relative to other states are two ways that real estate investors can measure the current and potential future demand for rental property in Georgia.
Quality of Life
Georgia recently moved up 15 spots in the newest ranking of best states to live, according to a recent report by The Atlanta Journal-Constitution. In fact, over the past year, Georgia improved in every key quality of life ranking category and finished in the top ten of two categories.
Atlanta has been one of the hottest real estate markets in the country for years. It is also one of the hottest real estate markets for investing in rental properties. The Atlanta real estate market has had steady growth over the past several years that make it a great place to live as well invest in. Located in the state of Georgia, the city of Atlanta is a hotspot for any type of real estate investing. It is a city with an incredible amount of upside. The cost of living in Atlanta is reasonable when compared to other big cities like Los Angeles or New York. Everybody loves the low cost of living in Atlanta but the students especially appreciate it making it one of the top rental markets in the United States. This factor alone draws young professionals priced out of those pricier markets.
If you are a savvy investor, you must be aware of the fact that Atlanta real estate has a record of being one of the best long term investments in the nation. As an investor, you can buy a fully renovated turnkey rental property in Atlanta. Since there is an increase in rental demand in Atlanta. Atlanta is Georgia’s capital and economic center. It is considered one of the 10 most productive states that contribute to the USA’s GDP annually. As the city continues to go through an economic boom, prices of turnkey properties in Atlanta are forecasted to increase in the following years. People will want to beat out the competition and purchase soon if they’re looking to develop a successful career, surrounded by a diverse community, especially for today’s youth.
With social distancing becoming a way of life across the country, Atlanta’s tourism industry is expected to take a considerable hit in light of this deadly pandemic. Many big events like the NCAA basketball tournament have already been canceled to avoid spreading of infection among huge crowds. The local businesses are feeling the brunt of the outbreak, too. The economy is bound to be hit in the short term. However, Atlanta’s housing market is not getting affected.
According to the data insights provided by the Bureau of Economic Analysis, the Atlanta metro area was the tenth-largest in the U.S. and among the top 20-largest in the world (as of 2020). The housing demand in Atlanta is still high, according to online real estate brokerage Simple Showing.
The question now is what happens moving forward. Is Atlanta going to remain a seller’s real estate market amid the ongoing Coronavirus pandemic, which no one knows when it is going to end? These latest real estate study’s result can be positive or negative depending on which side of the fence you are in— Buyer or Seller? While many have lost jobs, making them ineligible for a home mortgage, some sellers have taken their homes off the market. The decrease in the number of active listings indicates that new sellers are still not willing to put their homes on the market until the pandemic or its threat is completely over.
The low-interest rates are already leading to an increase in mortgage applications. Buyers looking to this opportunity to invest or buy a house. Low-interest rates coupled with Atlanta’s solid job market could be a boon for the local real estate market even in the time of the Covid-19 pandemic. Keeping aside the short-term effects of Covid-19 which would hopefully end, the Atlanta housing market is strong. There are no signs of weakness in the Atlanta real estate prices.
This means you can probably buy a home for less than list price, and the seller might be willing to pay some or all of your closing costs. If buyer demand eases, we could see a positive influence on the low inventory of Atlanta while at the same time seeing a negative impact on sales. Whether you’re looking to buy or sell, timing your local market is an important part of real estate investment.
Atlanta home prices are predicted to remain flat or fall by one to two percent during the next twelve months. Also, if listings linger on the market for longer, buyers have a special edge in negotiating sales prices. As a result, buyers who enter the market at this time should have more options than usual when it comes to choosing a property. So they should take advantage of scooping up their favorite deals which otherwise are taken away by seasoned investors in the bidding wars.
Atlanta would be a balanced real estate market for the remainder of this year. At the same time, the industry is adapting to the current environment by conducting business using technologies such as virtual showings and e-signing to help buyers and sellers with their housing needs in the face of these challenges.
Nationally, the housing market is heating up with an increase in home buying despite the COVID-19 pandemic. The real estate sector has been one of the most resilient areas of the economy during the severe economic shutdown. With the natural ability of Georgia to cope up with the rapidly changing times aggravated by an unforeseen pandemic and economic conundrums, experts can say that the “Empire State of the South” still poses a strong front in the real estate investing business. Needless to say, its captivating charm to investors and potential migrants make them see that the word “gorgeous” is still associated with the real estate investing in the exciting state of Georgia.