Effective rates for new leases rose 2.8% during the first quarter. Previous annual rent growth had hovered between 4% and 5% from late 1998 through early 2000.
"We track nationwide and Atlanta, to some degree, reflects conditions we're seeing elsewhere, but perhaps it's a little more of a slowdown here than in other markets," Greg Willett, M/PF Research director of research products, tells Globest.com.
Also for the first time in several years, Atlanta's rent growth fell "markedly" below the metro's overall consumer price inflation rate, Willett says. That was reported at 4.7% by the Bureau of Labor Statistics. Monthly rents in metro Atlanta average $808 overall and $915 at properties built during the past decade.
Properties totaling 14,214 apartments were completed during the past 12 months, including 2,383 units in projects finished during the first quarter. But annual apartment demand so far has been running only about 13,250 units, according to the study.
Metro Atlanta's apartment occupancy rate stands at 95.5%, which slips under the 96.9% occupancy posted in the third quarter of 2000, Willett says.
While some specific neighborhoods slipped, others remained strong. Occupancy fell about three points from the early to mid-2000 peak in the South Atlanta/South Fulton County area, while occupancy continued to surpass 96% in a new neighborhoods, such as West Cobb County and East DeKalb County.
The 20-county metro contains the nation's largest block of future product in the pipeline, with ongoing building at the end of the first quarter totaling more than 18,000 apartments, the study says.
"Atlanta's apartment leasing environment appears likely to grow even more competitive in the near term because of the large volume of ongoing construction," Willett says.
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David Wilkening
David Wilkening began his long journalism career as a police reporter for Chicago-area newspapers. He became a writer-editor for major newspapers in Chicago, Washington, Detroit and Florida. He has been a business editor, political editor and travel editor for newspapers and magazines. He tried for a while to be a political operative but did better as an adjunct college professor teaching English and journalism. He is the author of several books, both ghost-written and under his own name. He is also a widely published freelance writer who currently lives in Orlando.
