July 12, 2023

Atlanta 1Q23 Multifamily Market Insights Report: A mix of Class B and Class C assets sells to start 2023

Highlights:

Despite continued economic growth, softening conditions prevailed in the Atlanta multifamily market during the first quarter. Upticks in vacancy pushed apartment operators to trim rents at the start of the year, following steep gains.
Local vacancy trended closer to the market’s historical norms in recent months after holding steady around cyclical lows in 2022. The rate rose 60 basis points during the first quarter to 5.1%. Year over year, area vacancy trended higher by 50 basis points.
Asking rents fell by 1.2% in the first three months of 2023 to $1,567 per month. This marked the second consecutive quarter of modest declines, following several periods of rapid growth. Year over year, rents are up 1.3%.
Sales velocity in the first quarter slowed by approximately 50% from levels recorded in the fourth quarter of last year. The median sales price to this point in the year is $155,000 per unit, while cap rates have averaged about 5%.