Atlanta Q4 Multifamily Market Insights: Cap rates push higher to close 2022

Highlights:

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• The Atlanta multifamily market performed well in 2022, although property fundamentals softened slightly during the fourth quarter. Renter demand was fueled by an expanding local economy; growth is expected to slow in 2023.
• Vacancy trended lower throughout much of 2022, but the rate inched up 10 basis points in the last three months of the year. Vacancy ended 2022 at 4.5 percent, down 20 basis points for the year.
• Asking rents advanced 6.7 percent in 2022, although rents declined in the final three months of the year. Asking rents ended the fourth quarter at $1,586 per month.
• While multifamily properties continued to change hands in recent quarters, annual sales in 2022 declined nearly 40 percent from levels recorded in 2021. The median price was $202,500 per unit in 2022, up 19 percent from the median price in 2021.

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