Atlanta Multifamily Market Report
2024 Investment Forecast
Increasing Single-Family Housing Costs to
Assist Luxury Apartment Lease-Up
New supply, inflation concerns have broad impact across tiers. Although developers brought 20,000 apartments to market last year, luxury rental vacancy held under 7 percent, indicating solid demand for Class A units that should carry through into 2024. While a similarly high delivery volume is expected this year, likely prompting increased concessionary use, a robust local economy should help integrate these units into the market in the long-run. White-collar employment will increase this year, and the metro will remain among the nation’s most active by net in-migration. These new arrivals will be disincentivized from homeownership, as the metro’s average mortgage payment has held above the mean monthly Class A rent since 2022, the longest such period seen in the market since 2008. Higher mortgage rates are just one area where costs have climbed in the metro. Last year, Atlanta noted the highest rate of annual inflation of any major metro outside of California or Florida, prompting many lower-income households to consolidate to save on housing costs. While unemployment held under 4 percent between the end of 2021 and late 2023, lower-tier vacancy nevertheless increased by 590 basis points. The elevated costs of goods and services will continue to burden these renters, potentially impacting Class C operations, even among larger, professionally-managed facilities.