Atlanta Rental Prices

civilexpert · #1 Posted **Jun 10, 2008, 3:21 PM**

What does everyone think about the rent costs in Atlanta for apartments?

Do you think it's too high, and what are your opinions? My personal opinion is that it's been inflated for a long time.

Looking at the density of Atlanta and other factors such as walkability and convenience do you think apartments inside the perimeter and within city of Atlanta limits should be charging $800-$1200?

This thread is for your evaluation of the rental market in Atlanta and please feel free to give data/evidence freely.

gttx · #2 Posted **Jun 10, 2008, 3:53 PM**

I think it would be hard to argue that rental prices for the entire ITP market are "inflated." The area you are talking about is simply too large and too diverse, ranging from highrises in Buckhead to tiny, rundown houses in Southwest Atlanta.

On this issue, I would yield to market forces: prices are where they are now because people are willing to pay them. That's how a free market works....
If anything, we're seeing perfect evidence of that right now. Since credit is harder to obtain and people are less-willing to purchase a home right now, rental prices are pushed upwards. When we see ownership pick up again, rentals will go down, and the market will balance.

civilexpert · #3 Posted **Jun 10, 2008, 4:07 PM**

I understand your point about market forces. However we should point out that many apartment complex landlords are probably making so much money that they can afford to have huge percentages of empty apartments.

When the economy starts to do bad you can't just feel sorry for everyone. Many people out there are making bad choices and many people deserve to go broke. Landlords aren't people we should be feeling sorry for. I've rarely seen an apartment complex in Atlanta go bankrupt.

gttx · #4 Posted **Jun 10, 2008, 4:13 PM**

Well it's easy to point the finger at landlords, but ultimately they're in business to make money; as nice as it would be to assume they are compassionate and open to helping people who are down on their luck, the world simply doesn't work that way. Just as I go to work to make money - and I assume you do too - these people rent apartments for their livelihood.

If someone believes the price of an apartment to be too high, they should just look elsewhere. If too many people believe that (ie: the market), the landlord will be forced to lower his prices to be competitive and continue to make money.

RobMidtowner · #5 Posted **Jun 10, 2008, 5:34 PM**

It's easy to assume landlords are making so much money, but it's not exactly a "do nothing and make tons of money" kind've job. All it takes is being sued once or having a bad tenant who's not paying rent on time and tearing the place up to realize how risky being a landlord can be. Just my two cents.

Tombstoner · #6 Posted **Jun 10, 2008, 9:46 PM**

There was an article in a respected journal a couple weeks ago (maybe Forbes) that gave the ratio of mortgage-to-rent costs in cities across the US. Essentially, the point is that the (debateably) "ideal" environment is one in which the costs of owning and of renting are balanced (i.e., it doesn´t make obvious sense to do one or the other--either choice is equally sound). Atlanta was very close to the perfect balance. That surprised me a bit as I always assumed that with the housing market in the doldrums and interest rates still low, owning was definitely better. Apparently not--renting in Atlanta is still pretty smart.

gskreet33 · #7 Posted **Jun 11, 2008, 12:39 AM**

When I moved back to Atl in 1998 there were waiting lists for apartments and the rates intown were high. This seemed to continue up until around 2000. As the real estate market heated up, intown rents dropped. I was paying less for an apartment in 2004 than in 2000. It seems like now the ball is in the other court with intown rents going back up again.

Teshadoh · #8 Posted **Jun 11, 2008, 6:06 PM**

I believe Atlanta rental prices are lower than the national average - at least comparing urban markets. Especially now with the bad housing market, the more houses on the market that haven't results in more homes that enter the rental market. Case in point - my house. Our renters are paying less for a larger home than we are paying in the Boulder, CO area.

I would say $800 to $1200 is a steal. Just 10 years ago that would have been an acceptable rental price.

joey · #9 Posted **Jun 11, 2008, 6:49 PM**

I was paying $1/sf on Peachtree in Midtown in 2002. Until the Novare towers came online, back then, $1/sf was about the max anything non-luxury cost in Atlanta (with the notable exception of Post's urban properties, which I always felt were overpriced).

mayhem · #10 Posted **Jun 11, 2008, 10:03 PM**

Atlanta is VERY cheap to rent in for the size / stature of our city.