Last year, Atlanta was named the 53rd most affordable rental market in the nation. Over 60% of the local renters who were polled responded favorably about their current situation and declared that the city is still a bargain.
Will this change with the possible addition of Amazon’s second headquarters and the projected 50,000 tech jobs averaging six-figure salaries? A study by online rental service Apartment List suggests that rents will rise an additional .5 to .7 percent annually if Amazon moves in. Apartment List notes that “although a 1 or 2 percent rent increase per year may not sound like a lot, the additional rent growth comes at a time when rents are already rising rapidly nationwide and half of renters are cost-burdened, spending 30 percent or more of their income on rent.”
Average rents in Atlanta have been increasing by 2.5 percent annually between 2005 and 2015. Favorably, the city has fairly high vacancy rates that new Amazon employees might occupy. Also, Atlanta has averaged more than 25,000 building permits annually in the decade ending in 2015, according to Apartment List; this is more permits than any metro area except Dallas.
Atlanta is seen as “better equipped to incorporate the inflow of new workers and build enough housing for its growing population,” wrote researchers. “Most of the increase in rents in Atlanta would be due to an increase in the number of higher-end apartments rented by Amazon workers earning far more than the current area median of $36,340.”
Source: Curbed Atlanta