Rental Rates Expected to Rapidly Increase in Atlanta

A new study from RentCafe projects that rental rates in Atlanta will increase faster than many major American housing markets.

Rent is forecasted to increase 6.4 percent in Atlanta in 2016. Only seven other cities are projected to experience greater increases than Atlanta -- San Francisco, Sacramento, Portland, Dallas, Seattle, Los Angeles and Island Empire (a region in southern California that includes Riverside County and San Bernadino).

At the same time, Atlanta and other Southern cities remain some of the nation's most renter-friendly markets. Rents in Atlanta ($1,137), Orlando ($1,120 on avg.), and Tampa ($1,049 on avg.) are below the average rent posted by other job-centric, millennial-magnet urban hubs such as Los Angeles ($2,136), Boston ($2,020), and Seattle ($1,555).

Nationally, rents have been steadily rising for the past year, with the national average for an apartment hitting an all-time high of $1,181 in March 2016, up 5.7% from 2015.

Other takeaways from the study:

• The biggest surprise comes from Portland, where demographic and employment tailwinds keep demand for rental apartments up there as well. Rents in the city are expected to climb an impressive 8.8% this year, making Portland one of the main contenders for the “hottest metro for rent growth in 2016” title. But when compared to other millennial-magnet, job-centered hubs on the West Coast, Portland is actually much easier on the pocket. Whereas Portland apartments rent for $1,252 on average, both San Francisco and Seattle have higher average rents – $2,810 and $1,555, respectively.
• Apartments in San Francisco are already outrageously expensive – $2,400 on average for a studio and $4,800 for a two-bedroom in the city. By year end, the Bay Area is expected to see a 10.5% jump in rent prices. The same goes for LA and Sacramento.

Images: RentCafe