Atlanta Housing Market Millennials, Boomers and X-ers Oh My!
Ever since 2007 when the real estate market bubble burst there’s been a shift in the Atlanta Housing Market. Many home owners “move horizon” got shifted a few years. Now instead of moving up, many gen xers are staying in their home and waiting until their kids graduate. While boomers are downsizing and finding nothing to buy and being forced to rent, stay or relocate. For them the income is generally there to make the move but at the risk of their retirement plans.
Low inventory means higher prices for homes to buy and for homes to rent, that’s why we’ve seen a 13% decrease in Millennial buyers. This would be the first time buyer group. Between the low inventory and investor presence the normal homes that this new generation of buyers would get are not available.
The Atlanta housing market is one to watch, ever since 2010 the market has been “on fire” with prices soaring and at that same time home ownership is one of the lowest in the country. The biggest differences here are between the boomers and millennials, with baby boomers owning 2 homes to every 1 that millennials own.
So we ask… what’s stopping millennials from buying? Is it really price?
What’s it like to rent in Atlanta?
So we looked at what it cost to rent a 2 bedroom apartment in Atlanta and what you could get for the same in purchase power.
Out of the 900+ rental listings with 2 bedrooms in Atlanta (Atlanta is big!) we took the average of roughly $1,200 to $1,500 and came up with a representative property.
This property is approximately 900 square feet with 2 bedrooms and 1 bath. It’s got moderately updated features with a contemporary feel. It’s not in a high rise with a great view. It’s a condo in a townhome/apartment feeling building. The school systems are some of the worst although you can find pockets where elementary schools are good.
What’s it like to buy a home in Atlanta?
So now we’ll take that same budget of $1,200 and look for housing in Atlanta. First things first, we need to convert this $1,200 into a budget. $1,200 a month roughly translates to $250,000 but that doesn’t include taxes and insurance, so let’s bump it down to $1,000 a month or $211K. So let’s just look at homes for sale $200K and below in Atlanta. If you search you’ll find that there’s homes near buckhead that include a 6 bedroom home for $168K and a nice brand new condo for $200K.
Clearly available housing options isn’t the problem. What do you think the reason for low home ownership is?
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