Condominiums

Condominiums offer a convenient, low-maintenance, lifestyle that appeals to everyone from firsttime homeowners looking for an affordable place of their own to high-end buyers in search of resortstyle living. They have become an increasingly popular choice for Atlantans over the past decade as walkability became more top of mind and more condominiums were constructed. 1.4 times as many people bought condos in Metro Atlanta in 2022 than in 2012, shifting from 7% of all homes purchased in 2012 to 8% in 2022.

During the height of the pandemic, condominium sales slowed more than sales for single-family homes or townhomes, as many people sought extra space in a time of social distancing. They rebounded significantly in 2021 as vaccines rolled out and excitement for vibrant city living returned. In 2021, a record 7,205 condominiums sold in Metro Atlanta. In 2022, 5,545 condominiums were sold, down 23% year-over-year but still 3% higher than the number of condominiums sold in 2019.

Like other home types, there were fewer condominiums in Q3 and Q4 2022 than there were in the first half of the year. There were the fewest condominiums sold in a 6-month period since 2015. Condominium buyers who are taking out mortgages may be more affected by rising interest rates than buyers of other home types, as the interest rate for a condominium is typically slightly higher.

The average condominium in Metro Atlanta sold for $323,036 in Q3 and Q4 2022, up 6.1% year-overyear. Prices for condominiums—like other types of homes— increased significantly over the past three years. The average condominium cost 20% ($53,297) more in late 2022 than it did in the same period in 2019.

Most condominiums in Metro Atlanta sold in late 2022 were priced under $500,000 (90%). Compared to the

Metro Atlanta Condominiums

(Q3 & Q4 2022)

• $323,036 average sale price (+6.1% YOY)

• 8% of all homes sold were condominiums

• Condominiums sold 2 days faster than average (23 days on market)

• Condominiums sold for 98.1% of the original list price on average

• Condominiums sold for more per square foot than any other home type, averaging $272/SF demand for condominiums in this entry-level price range, the number of homes for sale is limited. There were just 1.4 months of inventory for condominiums under $500,000 and they sold in three weeks on average, two to five weeks faster than higher priced condominiums.

Luxury condominiums (priced over $1 million) tend to feature high-end finishes, skyline views, and resortstyle building amenities. They make up a small share of the overall condominium market, with just 32 sales in Q3 and Q4 2022. With a smaller pool of potential buyers in the luxury segment, these homes tend to sell slower than lower priced homes, averaging 57 days on the market. Luxury condominiums have experienced the greatest decline in sales volume of any price point since the peak last summer, with transactions down 56% since June 2022. However, they continue to sell near asking price, with an average sale price to original list price ratio of 96%.

Most condominiums are located in intown neighborhoods or near the town centers of suburban cities, offering a walkable lifestyle for residents. 64% of condominium sales in Q3 and Q4 2022 were ITP, and an even greater share of true condominiums were located intown, as many of the properties classified as condominiums in OTP locations are actually townhome condominiums.

InfoSparks, Greater Atlanta Area, Condominiums, Rolling 6-months as of December 2022 (year-over-year change compared to rolling 6-months as of December 2021)

Source: FMLS InfoSparks, Greater Atlanta Area, Condominiums, Rolling 6-months as of December 2022 (year-over-year change compared to rolling 6-months as of December 2021)

Source: FMLS InfoSparks, Greater Atlanta Area, Condominiums, Rolling 6-months as of December 2022 (year-over-year change compared to rolling 6-months as of December 2021) q Down YOY p Up YOY

Intown buyers were more likely to choose a condominium than the metro buyers on average. 25% of homes sold ITP in Q3 and Q4 2022 were condominiums compared to 8% of homes in Metro Atlanta.

Even with their relative popularity for intown buyers, the number of sales for intown condominiums were down 40% year-over-year in the second half of 2022, with 1,443 sales. This was a more significant slowdown than homes in Metro Atlanta in general (down 30% yearover-year) or all ITP homes (down 35% year-over-year).

Despite fewer sales, intown condominium prices continued to rise. The average sale price for an ITP condominium was $353,177 in late 2022, up 4.6% year-over-year, on par with the average annual home price growth in Metro Atlanta for the past 47 years. The price per square foot was up even higher, up 9.1% year-over-year. At an average of $312 per square foot, intown condominiums commanded a 15% premium compared to the average price per square foot for all Metro Atlanta condominiums ($272 per square foot).

Smaller, more affordable ITP condominiums had the greatest price growth in late 2022. 1-bedroom and studio condominiums were up 7.4% year-over-year (selling for $259,347 on average) and 2-bedroom condominiums were up 6.6% (selling for $390,179 on average).

The majority of units sold ITP in Q3 and Q4 2022 were older. The average year built for condos sold during this period was 1986. Just 5% of sales were in buildings built in 2010 or later. This was down slightly from the first half of the year when 7% of sales were in these newer buildings, but a typical pre-pandemic share.

Most intown condominiums sold in late 2022 were less than 1,500 square feet (86%), a slightly higher share than in recent years (2 to 4% more). Condominiums less than 1,500 square feet were less expensive, but appreciated at a higher rate than larger condominiums (+7.9% year-over-year). This is related to the higher demand for these smaller and more affordable units. There were 1.6 months of

(Q3 & Q4 2022)

• $353,177 average sale price (+4.6% YOY)

• $312/SF (+9.1% YOY)

• 25% of all homes sold ITP were condominiums

• Condominiums sold 1 day faster than average (25 days on market)

• ITP condominiums sold for 98% of the original list price on average

• Average Year Built: 1986

• Buckhead had the most condominium sales of any ITP submarket (430 homes), followed by Midtown (262 homes) inventory for ITP condominiums less than 1,500 square feet compared to 3.3 months of inventory for larger condominiums.

Most Expensive Area to Buy a Condominium ITP Ansley Park/Sherwood Forest ($543,385 average Q3/Q4 sale price)

Fastest Growing Average Condominium Price ITP

East Point (+96.0% Q3/Q4 average closed sale price in 2022 vs. 2021)

Highest Price Per Square Foot for Condominiums ITP Inman Park (Average $432/SF)

Shortest Average Days on Market ITP East Point (Average 1 day on the market)

Source: FMLS InfoSparks, Rolling 6-months as of December 2022

Less than $300,000 $300,000 to $499,999

Avondale Estates

Brookhaven

Cascade East

Cascade West

Chastain Park

College Park

Decatur

Downtown

Hapeville

Peachtree Hills

Peoplestown/ Chosewood Park/ Lakewood Heights

West End/Adair

Park/Pittsburgh/

Sylvan Hills

Brookwood Hills

Buckhead

Cabbagetown

Collier Hills/Ardmore Park

Druid Hills/Emory

East Point

Edgewood

Garden Hills

Grant Park/Glenwood Park

Inman Park

Kirkwood

Lake Claire

Little Five Points

Midtown

Old Fourth Ward

Ormewood Park

Reynoldstown

Vinings

Virginia Highlands/Morningside

West Midtown/Underwood Hills

$500,000 to $699,999

Price brackets based on 6-month rolling average sale price in analyzed area as of December 2022 from FMLS

Most new construction condominium sales (56%) have been intown, typically in walkable neighborhoods where buyers can take advantage of the conveniences of city living. With 43 new condominiums sold ITP in late 2022, condos make up the smallest share of the ITP new home market (9% of new homes sold). In some cases, new construction sales are not recorded in FMLS and the actual number may be higher.

New condominiums ranged from $185,000 for the gut renovation of a historic 2-bedroom at Willow Park in Decatur to $8,250,000 for a 4-bedroom penthouse at Graydon Buckhead. Most were priced under $600,000 (60%), but the average sale price—$737,219 ($451 per square foot)—was skewed higher by a few luxury condominium sales.48

Most new condominiums sold in 2022 were located in high rises in Midtown, West Midtown, or Buckhead. These buildings typically completed construction in 2020 or

2021. These included 40 West 12th , 788 West, J5, Graydon Buckhead, and The Atlantic. The Dillon is also pre-selling luxury units in a high rise building under construction in Buckhead that is expected to be completed in 2024.

The number of cranes in the sky around Midtown and Buckhead are not a sign of more condominiums on the way. Almost all of these are for apartments or commercial projects. New condominiums completed in 2022 or currently under construction have trended toward smaller buildings in east side neighborhoods like Old Fourth Ward, Grant Park, Virginia Highlands, Edgewood, and Decatur rather than high rises in the core. Most are four stories or less with 40 units or fewer. They offer a lock-and-leave lifestyle with new construction in quieter residential neighborhoods. In many ways a return to Atlanta’s traditional, smaller multifamily buildings of the early 1900s, but with modern designs, floorplans, and amenities.

Most of the condominiums sold in Q3 and Q4 were located intown, but condo living has a place in the suburbs as well. About 37% of condominiums were sold OTP in late 2022. In many cases, properties classified as condominiums OTP are townhome condominiums rather than traditional, singlelevel condominiums in multifamily buildings.

Traditional condominiums OTP are typically located in mid-rise buildings in the town centers of places like Sandy Springs, Dunwoody, Cumberland, Alpharetta, Woodstock, along with some low-rise buildings in places like Stonecrest.

Condominiums outside the perimeter are typically more affordable and slightly larger than intown condominiums.

Stats

Condominiums (Q3 & Q4 2022)

• 37% of all condominium sales were OTP

• 29% of all condominium listings were OTP

Most Expensive Area to Buy a Condominium OTP

Fastest Growing Average Condominium Price OTP

Highest Price Per Square Foot for Condominiums OTP

Shortest Average Days on Market OTP

Suwanee ($544,000 average Q3/Q4 sale price)

McDonough (+119.2% Q3/Q4 average closed sale price in 2022 vs. 2021)

Chattahoochee Hills ($591 per square foot)

Chattahoochee Hills (Average 1 day on market)

Less than $300,000 $300,000 to $499,999

Clarkston

Douglasville

East Cobb

Fayetteville

Lawrenceville

Mableton

Marietta

Norcross

Peachtree City

Peachtree Corners

Sandy Springs

Smyrna

Snellville

South Fulton

Tucker

Acworth

Alpharetta

Canton

Cumming

Duluth

Dunwoody

Johns Creek

Kennesaw

McDonough

Milton

Roswell

Chattahoochee Hills

Suwanee

There were 76 new construction condominiums sold in Metro Atlanta in Q3 and Q4 2022. Nearly half of new condominiums were located outside the perimeter; however, many of the homes categorized as condominiums OTP are townhome condominiums. The only new construction, true condominiums OTP sales included Bentley Ridge (Marietta), The Maxwell (Alpharetta),

Atley (Alpharetta), and Gatherings at Herrington (Cumming) (active adult community), with 20 total sales in these communities, averaging $485,585. The most expensive new condominium sold OTP in late 2022 was a 3-bedroom, age restricted unit at the Gatherings at Herrington in Cumming, which sold for $560,000. There were no new construction, true condominiums sold in other OTP locations in late 2022.