Despite initial concerns that the housing market would suffer greatly during the Coronavirus pandemic, real estate sales are up and the market remains remarkably strong. If you had asked many real estate experts in spring 2020 how confident they felt in the market, you’d have gotten a wide variety of answers. Even many experts believed that concerns over COVID would stall the market as many people either didn’t feel comfortable viewing houses or having strangers in their homes. There was also a concern that economic instability would lead to a slow down in the purchasing of homes. However, it turns out that people who were ready to sell found buyers quickly, and buyers continued with their plans to relocate for reasons such as work, family, employment and retirement. An already low inventory of houses combined with a delay in receiving building materials from overseas means that the market will likely be strong for a long time to come.
Atlanta is no exception when it comes to strong housing markets across the country. Median home prices in the metro area are up over 4% from this time last year, and according to the U.S. Census Bureau, our city receives on average 36 new residents every day. The Atlanta Regional Commission estimates that metro Atlanta will gain 2.5 million more residents by the year 2040.
Pandemic Effect on Real Estate Trends
While the real estate market has remained strong throughout the COVID pandemic, the reasons people have for moving have changed considerably. For many urban dwellers, the hustle and bustle of living in a crowded and busy metropolitan area such as New York City or Los Angeles has never been a problem, and in fact people have been drawn to the excitement of such large cities for generations. The pandemic has changed that outlook for many people, and a large number of city dwellers are now looking for areas where the population is less dense and they can afford more space for themselves and their family. Spending more time at home and working from home has made some people rethink the layout of their smaller apartments and condos. Some people who were previously committed to not having a yard are suddenly interested in room to play and even take up new hobbies such as gardening and the keeping of bees and chickens.
Atlanta is unique among cities of it’s size with its plentiful greenspace and surprisingly large lots found even Inside The Perimeter (ITP). And while you may not see many beehives and chicken coops in Midtown, locations where such activities are a real possibility are easily found not too far outside the city proper. This means newcomers can find a larger home with a bigger yard and still be located convenient to the sports and cultural attractions that make Atlanta such a desired location for new home buyers. To top it off, home prices in the Atlanta area are significantly more affordable than many of these larger cities.
In some cases, the pandemic has also allowed people to turn long term dreams into reality because of how the way we work has changed. Several months into the quarantines and social distancing measures, many companies began to realize that their work was flowing just as smoothly, if not more so, with their employees working from home. Office space can be expensive, and many major firms are also becoming more and more aware of their global footprint. This means that for many companies that sent their workers home to temporarily work remotely, returning to the old “normal” way of working no longer makes financial sense. With no particular office location to tie people down, many are choosing to move and work from home in a different city/state. Jobs are no longer holding people in one particular city and preventing relocations.
Who Is Moving to Atlanta?
The new citizens of our city are a diverse group, but one of the largest groups of people that are represented by the new homeowners in our city are Millennials. Our city is currently ranked number 2 in the nation as a destination for people aged 21 to 36, with Sandy Springs in particular being a Millennial hub. Along with Millennials, retirees make up another large group of newcomers to Atlanta. What makes Atlanta so attractive to this group? Newly relocated retirees mention the home affordability, quality of conveniently available healthcare, and the amount of recreational activities they find easily accessible.
There is great diversity in ethnicity among the new arrivals to Atlanta. Many people have heard for decades that Atlanta is “the City too Busy to Hate.” No doubt this catchy line springs from the great diversity we have in Atlanta. New arrivals are finding that much of the Atlanta area suburbs are also quite reflective of all ethnic groups and minorities. This translates into an almost unlimited amount of restaurants featuring cuisine from all over the world, and cultural festivals that will hopefully be filling our social calendars again soon.
What About Young Families?
While Millennials and retirees may make up the bulk of people moving to Atlanta, the city remains a destination for young families looking for just the right place to settle down and raise children. Families often look to the suburbs for larger yards and high quality education opportunities, finding themselves in cities like Johns Creek, Alpharetta, Suwanee and Peachtree City. Population growth in these areas reflect their popularity with new homeowners. Atlanta’s close-in suburbs feature some of the best public schools in Georgia, and the commitment of many localities to preserving green space in the form of large parks, urban hiking trails and wetlands mean finding something to do even during the quarantine has been easier for parents trying to keep young kids entertained.
Where is Everyone Coming From?
If you’re wondering where the new arrivals to Atlanta are coming from, the short answer is, everywhere. While people are moving here from all over, the majority of new Atlantans are arriving from major cities such as New York, San Francisco, Los Angeles and Chicago. Coastal cities make up another source of the incoming new Atlantans. There’s no one reason for this trend in moving away from the coast, but we have several possible ideas. Recent increases in the strength and number of major hurricanes are driving some people inland, especially if they have lived through multiple major storms in the past. Likewise, some of Atlanta’s new residents are people from the west coast who are no longer willing to deal with natural disasters such as earthquakes and wildfires.
What Makes Atlanta So Appealing?
Atlanta comes out on top, or near the top, of a wide variety of rankings. According to a recent survey by WalletHub, Atlanta ranks as the number one most affordable big city and the number three city in which to start a career. Looking more closely at the job market in Atlanta, our city is ranked number two for professional opportunities and as the number five major city for having the most entry-level jobs. Even better, Atlanta is the number one city for having the most STEM openings (that is, jobs in the fields of Science, Technology, Engineering and Math).
What makes all of this possible is just how many major corporations are relocating to Atlanta for their hub. According to the Metro Atlanta Chamber, Georgia has been named the number one state for business for three years running. A wide variety of businesses are choosing to call Atlanta their home, representing many industries, such as bioscience, financial technology and supply chain management, many of which are being pulled from traditionally solid tech hubs such as Silicon Valley and New York City.
And to top things off, the film industry has been a major player in the Atlanta job market for several years now. The Georgia Film, Television and Digital Entertainment Tax Credit gives companies that spend over $500,000 on production or post production in Georgia a hefty 20% tax credit, which is a deal too sweet for many production companies to resist. Numerous existing production companies have opened satellite offices around Atlanta, while other newer companies have sprung up organically around town.
Atlantans Moving Farther Out
It seems that the suburbs of Atlanta are just as appealing as the city itself. While many people are moving into the city each day, there are some people leaving as well. However, many Atlantans who are choosing to move away are often not moving very far. Speaking with both real estate professionals and moving companies in Atlanta, they are reporting that more and more urban dwellers are making the short leap OTP (outside the perimeter) into the suburbs. Those moving out of the city proper cite reasons such as more affordable homes, more green space, and the ability to fulfill a long-term plan now that so many jobs and even schooling can be done from home online.
Another factor in the decision to leave for the suburbs is traffic. Prior to the pandemic, a person could easily sit on the interstate for 2 hours each day driving to or from their office. Comparatively, if you have the ability to commute only as far as your in-home office, that’s a deal many people find hard to resist. Many people who still drive Atlanta’s highways each day are reporting that traffic is approaching pre-pandemic levels again, making both living and working in Atlanta’s suburbs quite appealing.