Apartment demand in the first quarter of 2021 more than doubled the average first quarter demand recorded over the previous 10 years. That figure surprised us (and the experts) given the seasonality of apartment turns. We have always seen fewer apartment turns in the winter months, followed by an uptick in the spring. It intrigued us, so we dug deeper into the data and found that a market we serve, Atlanta, was one that of eight cities with a notable climb in occupied apartments, according to Real Page data. So, we peeled back the onion more to uncover the following three trends.
Spreading Out in the Suburbs
Experts identified a shift to Atlanta’s suburbs this year. We’ve all read the articles about individuals moving to gain more space, indoors and out, as the home continues to serve a multitude of purposes for many – living quarters, office, gym and more – due to the pandemic. Atlanta is certainly seeing that impact. In January, rent was higher (year over year) in many of Metro Atlanta's suburban markets while rent stagnated in Atlanta proper, which was the most expensive submarket at that time last year, “These suburban gains mean that apartment pricing power has steered from the urban core to Atlanta's suburbs", experts say.
Rents Inching Upward Ever So Slightly
April was the fourth consecutive month of rent increases after a decline in 2020. While the city’s year-over-year rent growth was trailing the state average of 4.6%, it was still exceeding the nation’s average, which was flat. However, Apartment List states that “Renters will find more reasonable prices in Atlanta than most large cities.” The median rents in Atlanta clocked in at $1,199 for a one-bedroom apartment and $1,206 for a two-bedroom in March.
Heading East & South
As Southeastern residents, we’re accustomed to being a hot spot for Northeasterners and Midwesterners. The pandemic has accelerated those moves and added a few more states that aren’t normally in the mix. Specifically, folks are leaving California, Illinois, Maryland, New Jersey and New York and opting to call Arizona, Idaho, North Carolina, South Carolina and Tennessee home, according to the 2020 U.S. Moving Migration Patterns Report from North American Moving Services. With customers in Atlanta, Charlotte and Raleigh, we’re keeping an eye out for the influx of residents!
If you’re a property or maintenance manager in Atlanta up to your eyeballs with apartment turns given the demand, contact us as we can streamline your make ready process and deliver top quality work for a full, end-to-end turn.