Metro Atlanta's apartment building boom helps South buck nationwide slowdown
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New multi-family developments in Midtown and Downtown and the Atlanta Beltline are helping Atlanta keep apace amid a nationwide slowdown in new apartments, according to a report.
Why it matters: Across the country, more than half a million new apartment units are expected to be completed this year — down roughly 21% from last year's record.
By the numbers: The city of Atlanta will deliver 6,400 of the metro region's 17,500 units scheduled to be constructed in 2025, per RentCafe.
Fun fact: Over half of new units on track to open in 2025 are located in the South, per RentCafe.
- The region's "business-friendly environment, relative affordability and less restrictive zoning laws … stand in sharp contrast" to more restrictive coastal areas, said Doug Ressler of data provider Yardi in the report.
Context: This year's drop across major U.S. metros is still above the annual average for this decade, according to a report by listing site RentCafe.
- The pipeline is slowing as higher building costs, higher interest rates and a surplus of supply in some markets make developers cautious to start new projects.
- The median rent in metro Atlanta dropped 14% compared to its peak in 2022, according to Realtor's August Rental Report.
What they're saying: "The boom in multifamily construction is ending," researchers at Harvard's Joint Center for Housing Studies wrote in a June report.
Between the lines: More people are renting because homebuying is out of reach, keeping rents high even as hikes ease.
- And apartments that do get built are usually luxury apartments, not the affordable options many renters are searching for.