WESTMOUNT INSIDER: What’s Fueling Atlanta’s Explosive Multifamily Growth?

Curtis Walker, Managing Director – Multifamily Acquisitions, shares four factors he’s seeing now within the value-add multifamily space.

No one can deny the general appeal of living in Atlanta. Four consistently agreeable seasons, picturesque parks and scenery, and a burgeoning local food and drink scene attract tens of thousands of migrants each year. When you look at the industries that have moved or expanded into the region, ranging from technology to manufacturing, they have driven Atlanta to be in the top job growth markets.

I moved to Atlanta from Dallas in 1995 and over the years, I have witnessed firsthand how the city’s proactively pursued growth and improved neighborhoods have, with smart planning, created unique assets such as the Beltline trail.

Today, Metro Atlanta is the ninth largest metro region in the U.S. and an excellent market for value-add multifamily investment. So, what is it that’s making Atlanta a driving force for acquisitions in multifamily investment portfolios this year? Here are four indicators of great success:


  1. Sound Infrastructure Supporting Rapid Population Growth

Atlanta has both the land and infrastructure to support its population growth. The key asset has been Hartsfield Jackson Int’l Airport, the modern day “Interstate Highway.” It has grown to become the busiest in the country and the world with over 110 million boardings in 2019. The driver of this growth has not only been the proximity to other major Southeast/East coast cities but also Europe. Driving the nation’s lead, Atlanta is within the top 5 of fastest growing large cities.


  1. Job Market Diversity

Atlanta’s strategic location in the Southeast makes it a popular location for distribution and warehouse centers while its below-average taxes attract numerous Fortune 500 and international corporations. International firms with major operations in Atlanta now include Mercedes Benz, Porsche, Hyundai, and SK Innovation. The 21-county region is projected to add an additional 1.2 million jobs within the next 30 years. The city has also been growing in popularity as a technology hub due to the proximity of top-tier universities: Emory and Georgia Institute of Technology. Site Selection Magazine recently ranked Georgia as the fourth best state in terms of general business climate.


  1. Slowdown of New Construction

Permitting for new multifamily development in the Atlanta metro slowed by nearly 50 percent from 2019 to 2020, and new apartment deliveries in 2021 are forecasted to reach their lowest annual level since 2014. This will cause vacancy rates to tighten and a continued increase in average rents as new renter demand outpaces deliveries. During the pandemic, rental growth in the suburbs outpaced infill development. However, recently Atlanta has been transforming from its suburban sprawl into higher density development within the perimeter. Looking ahead to 2022, lack of supply in both areas should fuel strong rent growth across the board, particularly for Class B and C product. I think the story in 2022 will be that rent growth will be strong for the metro and balanced between low- and high-density product. Class B product will likely have higher rent growth, but incomes will start to become a limiting factor.


  1. Transforming Quality of Life

Atlanta was recently ranked as one of the best places for business and careers in the United States by Forbes Magazine. The low cost of living is extremely appealing to professionals relocating to the area. Comparably, Atlanta’s cost of living is 50% less than major metropolitan areas in both New York and California. Coming out of the pandemic, Atlanta continues to be an attractive market to enjoy low-cost living as well as enticingly low taxes.



Author: Curtis Walker

Curtis is the Managing Director of Multifamily Acquisitions at Westmount Capital Realty, LLC. His tenure and experience provide leadership and focus within Westmount’s national real estate investment portfolio and its new acquisitions of prime U.S. multifamily opportunities within the southeastern region. He has over 33 years of related experience in the development and acquisition of multifamily assets accounting for over $5 Billion in value.

To learn more about Westmount Realty Capital or for additional information, contact us at info@westmountrc.com or find us at https://westmountrc.com/.


This article, and Westmount Realty Capital blogs in general, is intended for informational and educational purposes only, and does not constitute a solicitation or offer by Westmount Realty Capital, LLC to buy or sell any securities, futures, options, foreign exchange or other financial instrument or to provide any investment advice or service. Westmount is not your advisor or agent. Please consult your own experts for advice in these areas. Although Westmount provides information it believes to be accurate, Westmount makes no representations or warranties about the accuracy or completeness of the information contained on this article.


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