Our industry specialist has reviewed and approved the final article. Also, some of the data presented here have been integrated into the Atlanta real estate spreadsheet template.
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Expecting a decrease in Atlanta's prices in 2025? Think again.
Even with changes in the market, Atlanta's demand is high, and supply is tight, pushing prices up.
Let's explore the reasons why costs in this city are set to rise in 2025.
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
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- Yes, investing in real estate is a solid option in 2025 in Atlanta
1) Atlanta home values have already risen by 2.5% since last year, and this trend may persist
Signal strength: strong
The fact that home values in Atlanta have already changed by 2.5% since last year is a strong indicator that the housing market is on an upward trend. This increase suggests that demand is likely outpacing supply, which often leads to rising prices.
Currently, the median home price in Atlanta is around $390,834, and this figure provides a baseline for understanding the market's growth potential. Additionally, the median sales price per square foot is approximately $287, which reflects the value buyers are willing to pay for space in this area.
These numbers are crucial because they show that the market is already experiencing growth, and if this trend continues, it could mean even higher prices in the future. For potential investors, this could be a sign that now is a good time to enter the market before prices climb further.
However, if the home value change were to drop below 0% or become negative, it might indicate a cooling market, suggesting that prices could stabilize or even decrease.
Source: Redfin
2) Three major websites predict that home prices in Atlanta will rise in 2025
Signal strength: strong
There are three major websites forecasting a positive growth for home prices in Atlanta in 2025, which is a promising signal for potential investors.
Among these forecasts, Realtor is the most optimistic with a prediction of a 10.20% increase in home prices, followed by Redfin at 4% growth, and Zillow with a more modest 2.60% rise.
The significant gap between these forecasts suggests that while there is a general consensus on growth, the extent of it is uncertain. It's important to remember that forecasts should be taken with caution, as they are based on predictive models that may not account for unforeseen changes.
We will also rely on strong, reliable, and actual data to make a professional judgment. If these forecasts were predicting a decline, it would signal a potential decrease in home prices.
Sources: ZillowForecasts, RedfinForecasts, RealtorForecasts
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3) Atlanta's "Livability" score of 78 indicates a good quality of life
Signal strength: moderate
The livability score of 78 in Atlanta is considered good because it reflects a balance of amenities, cost of living, and quality of life.
One reason for this score is Atlanta's vibrant cultural scene, which includes a rich history, diverse arts, and numerous festivals that attract both residents and tourists. Additionally, the city boasts a strong job market with opportunities in various sectors such as technology, film, and logistics, which draws professionals seeking career growth. Furthermore, Atlanta's green spaces and parks offer residents a chance to enjoy outdoor activities, contributing to a healthier lifestyle.
These factors make Atlanta an attractive place to live, which in turn can drive increased demand for housing as more people move to the area. As demand rises, it's reasonable to expect that housing prices will likely increase in 2025, making it a potentially lucrative market for real estate investment.
However, if the livability score were to drop below 70 due to significant changes in these characteristics, it might signal a different trend in housing prices.
Source: AreaVibes
4) In Atlanta, home prices have risen by an average of 8.8% annually over the past decade
Signal strength: moderate
The fact that home prices in Atlanta have appreciated at an average rate of 8.8% over the last decade is a noteworthy signal for potential investors. This historical growth rate suggests that there has been consistent demand and price growth in the Atlanta housing market.
Such a positive trend over a ten-year period can indicate favorable conditions for future price increases, making it an attractive prospect for those considering real estate investments. However, it's important to remember that past performance doesn't guarantee future results, and market dynamics can change.
Despite this, historical appreciation rates are still a valuable indicator to consider when evaluating potential investments. They provide a context for understanding how the market has behaved and what might be expected.
If the appreciation rate were to drop significantly, say below 3% over a similar period, it might suggest a different trend and warrant a more cautious approach.
Source: NeighborhoodScout
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5) Atlanta boasts a strong employment rate of 65.6%
Signal strength: minimal
The employment rate in Atlanta is at 65.6%, which is considered high compared to other regions in the United States. This high employment rate indicates a strong job market, which often leads to increased demand for housing as more people have the financial means to buy homes.
In Atlanta, the three major employment sectors are technology, healthcare, and logistics, which are thriving and contribute significantly to the local economy. Companies like Coca-Cola and Delta Air Lines are major employers in the area, providing numerous job opportunities and attracting more residents to the city.
As more people move to Atlanta for these job opportunities, the demand for housing is likely to increase, which can drive up housing prices. A high employment rate often correlates with a growing population, which in turn puts pressure on the housing market to accommodate the influx of new residents.
If the employment rate were to drop significantly, say below 60%, it could signal economic challenges, potentially leading to a decrease in housing demand and stabilizing or even lowering housing prices.
6) In Atlanta, about 19% of homes sell for more than their listing price
Signal strength: minimal
In Atlanta, around 19% of sales close at a price higher than the listing price. This indicates that buyers are willing to pay more than the asking price, which often happens when demand is strong.
When demand is high, it usually means that more people are interested in buying homes than there are homes available. This competition among buyers can drive prices up, as people are eager to secure a property before someone else does.
As a potential investor, this is a sign that the market is competitive and prices may rise in the future. However, if the percentage of sales closing above the listing price were to drop significantly, say to below 5%, it might suggest that the market is cooling down.
Source: Zillow
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So, are prices going to climb in Atlanta in 2025? Yes, they are!
Atlanta's housing market is poised for price increases in 2025, driven by several compelling factors.
Firstly, home values have already risen by 2.5% since last year, indicating a strong upward trend. The current median home price of $390,834 and a sales price per square foot of $287 suggest a robust market. This growth is supported by forecasts from major websites like Realtor, predicting a 10.20% increase, Redfin at 4%, and Zillow at 2.60%.
Additionally, Atlanta's attractive livability score of 78, a strong employment rate of 65.6%, and a historical average home price increase of 8.8% annually over the past decade further bolster the case for rising prices. With 19% of homes selling above their listing price, demand is clearly outpacing supply, making it a competitive market.