METRO ATLANTA
QTR 2 2022
MARKET REPORT
KELLERKNAPPREALTY.COM
As we reach the mid-point of 2022, one of the primary issues on everyone’s mind is housing affordability in Atlanta. In the second quarter, Atlanta was officially deemed “unaffordable” in the Federal Reserve Bank of Atlanta’s 2022 index. But many of us didn’t need a federal report to tell us what we instinctively knew. Affordable Housing can mean different things to different people and doesn’t always carry a consistent definition. However, when we talk in general terms, we are usually speaking about the ability of the average working person to be able to afford to live in or near the community where they work. It’s a complex issue and raises many questions. What is the best way to create more affordable housing in our city? How do we incentivize developers and builders to create housing that is affordable, when land costs in the city centers and materials and labor costs continue to rise? How do we manage the needed infrastructure improvements (roads, transit, etc.) that are created with the higher density that affordable housing creates? These and so many other questions are at the heart of this important discussion. Atlanta is at a crossroads in urban planning. Will we make the needed changes to encourage affordable housing, or will we become a city where only the most affluent can live, and everyone else must commute into the urban centers?
FROM OUR PRINCIPAL BROKER
WESLEE KNAPP
At Keller Knapp, we have been at the heart of this issue in recent years – educating our agents on affordable housing, working with builders to encourage innovative ideas to create more affordable housing units, and aligning ourselves with organizations such as the Atlanta Land Trust, who are actively engaged in creating more affordable housing in our city. Our report this quarter highlights some of the key aspects of affordable and accessible housing around the city, and where buyers might still find a home they can afford. With nearly 200 agents in four Atlanta offices, we continue our commitment to our original company mission – to be a great Neighbor. Local Real Estate Expertise... Like Only a Neighbor Can. Sincerely,
Weslee Knapp, REALTOR® Principal Broker, Owner
AFFORDABILITY
ACCESSIBLE HOUSING
There is often a significant amount of confusion about what Affordability means, when we’re talking about housing in Atlanta. And it stems from the complex issue of people being able to afford to live in the city -- what’s “affordable” to one person may not feel affordable to another. It could be the average person who works full time making an average wage and can’t afford to buy or rent a home in a neighborhood near where they work. Or it could be a lower income family who has lived in the city for years but may be pushed out due to rising taxes or landlords who sell to developers. And the solutions to these problems, from an urban planning perspective, may be very different.
Affordable Housing is the amount a person or family can spend so that total housing expense is 30% or less of their total income. In Atlanta, the 2022 AMI is $94,600.
For purposes of our report, we use the term Accessible Housing to refer to housing (rental or purchase) that the average person in our workforce can afford. Teachers, police officers, retail workers, restaurant and hospitality employees…. these are our workforce and there should be housing they can afford within reasonable proximity to where they work.
Max Sale Price for a 3-Bedroom Home
Affordability is defined by the federal government as a household not paying more than 30% of their total income towards rent or mortgage payments, utilities, taxes, insurance and other related housing expenses. For cities to determine how to best support their affordable housing needs, they look to Area Median Income (AMI) as a tool. AMI is a measure of residents’ median income in an area and is calculated annually by the US Department of Housing and Urban Development (HUD). The City of Atlanta is in the Atlanta-Roswell-Sandy Springs Metropolitan Statistical Area (as defined by HUD). HUD calculates all the annual income earned by families in the MSA and determines the income that is in the middle -- half of the families earn more than the AMI and half of the families earn less than the AMI. For 2022, HUD established AMI at $96,400 – the median amount one household with four family members earns in one year. HUD then adjusts the incomes based on the number of persons who may be in a family.
100% of AMI
In 2022, a family earning 80% of the AMI could “afford” to purchase a home with a sale price maximum of $240,720. If they earn 120% of the AMI, their maximum price increases to $361,180. However, even at 120% of AMI, a family would be limited in the communities they could find an affordable home to purchase. And the numbers look similar for rental homes. As we look at Accessible Housing in each of our 10 Metro Atlanta areas this quarter, we’ll focus on where we believe buyers who are near the AMI (between 80% 120%) could reasonably afford to purchase a home.
120% of AMI
$361,180
$300,900 Max Sale Price for a 3-Bedroom Home
80% of AMI
$240,720 Max Sale Price for a 3-Bedroom Home
Source: Invest Atlanta
MARKET ANALYSIS
2ND QUARTER 2022
SINGLE-FAMILY HOMES
400 75
85
2 1
METRO ATLANTA
3
AREA BREAKDOWN SINGLE-FAMILY HOMES 1 2
285
4
Northwest Atlanta
10
Northeast Atlanta
3
City of Tucker
4
North Decatur
5
Intown Atlanta
6
City of Decatur
7
South Decatur
8
Southeast Atlanta
9
Southwest Atlanta
10
Westside
6
5
20
285
7
20
8 9
675
75 85
NORTHWEST ATLANTA
2ND QUARTER 2022 KEY METRICS
NEIGHBORHOODS
S INGL E -FAM ILY HOM ES 1 2 3
SALES PRICE $1,326,714
4 5 6 7
AVERAGE SALES PRICE % CHANGE FROM Q2 2021 +16%
Sandy Springs (W) Sandy Springs (S) Chastain Park Peachtree Hills/Peachtree Park Collier Hills Tuxedo Park West Paces Ferry
#UNITS SOLD 295
400 285
SOLD PRICE/LIST PRICE 101.4%
75
AVERAGE DAYS ON MARKET 6
2
1
141
WHAT’S NOTABLE IN 3
NORTHWEST ATLANTA
7
THIS QUARTER?
85
Northwest Atlanta is, by far, the most affluent area in the city. Historically, these neighborhoods have been inaccessible for first-time buyers and even rental rates make it challenging for our city’s workforce to afford housing in this area. As the City of Atlanta considers ways to create more affordable and accessible housing options, Northwest Atlanta would be a prime place to consider. It is a busy economic center in the city, with a tremendous number of workforce jobs in the retail, restaurant, service and hospitality industries. It is hard to imagine that accessible housing will ever be an option in Northwest Atlanta, but improvements in public transportation and alternative transit infrastructure may help relieve commuter traffic congestion in the area.
6
285
4
5
78
NORTHEAST ATLANTA
2ND QUARTER 2022 KEY METRICS
NEIGHBORHOODS 1 2 3 4 5
SINGLE- FAMILY H OM ES
Brookhaven - North Chamblee Doraville 85 Brookhaven - South North Buckhead/Pine Hills
SALES PRICE $764,400
141
AVERAGE SALES PRICE % CHANGE FROM Q2 2021 +13.9%
#UNITS SOLD 301
SOLD PRICE/LIST PRICE 102.3%
AVERAGE DAYS ON MARKET 5
3 285 85
1 2
WHAT’S NOTABLE IN
NORTHEAST ATLANTA THIS QUARTER? 5 4
285
85
23
Northeast Atlanta has always been home to some of Atlanta’s more affluent neighborhoods. However, Doraville represents a community that offers accessible workforce housing in a convenient location. While prices increased 16.4% in Q2 compared to last year, the Median Price in 2022 is $353,725, making it a relative bargain compared to nearby neighborhoods. Doraville offers buyers proximity to downtown Atlanta and Buckhead amenities and is the Southeast’s most prosperous immigrant-owned small business community. In addition, the 127-acre Assembly Studios (site of the former GM Assembly Plant) is expected to be completed in June 2023. This development will bring thousands of jobs to Doraville, as well as restaurants, retail and green space that are part of the planned development.
CITY OF TUCKER
2ND QUARTER 2022 KEY METRICS
NEIGHBORHOODS
S INGL E -FAM ILY HOM ES
140 1 2
City of Tucker - West City of Tucker - East
SALES PRICE $439,875 AVERAGE SALES PRICE % CHANGE FROM Q2 2021 +18%
#UNITS SOLD 135
SOLD PRICE/LIST PRICE 100.8%
AVERAGE DAYS ON MARKET 6
285
29
1 85
WHAT’S NOTABLE IN
CITY OF TUCKER
2
THIS QUARTER? Tucker is a great example of an area that has just recently become what many would consider inaccessible housing. In the first half of 2021, the Median Sales Price hovered around $350,000. While perhaps on the higher end of the range for those at 120% of AMI, buyers could still find many accessible housing options. However, prices increased 21.9% in 2022, to a Median Price of $427,438. In recent years, City of Tucker has represented a hidden gem of accessibility – conveniently located right at the perimeter of Atlanta, attractive prices and with a growing downtown business district. As City Tucker has gained in popularity, first-time buyers may need to look for a home outside the Tucker city center.
78
10
78
NORTH DECATUR
2ND QUARTER 2022 KEY METRICS
NEIGHBORHOODS 1 2 3 4 5
S I N G LE -FA M I LY H OM E S
North Druid Hills Northlake Leafmore/Sagamore Hills 85 Medlock Park Druid Hills
SALES PRICE $652,850
285 85
400
2
AVERAGE SALES PRICE % CHANGE FROM Q2 2021 +13%
#UNITS SOLD 280
SOLD PRICE/LIST PRICE 101.9%
AVERAGE DAYS ON MARKET 6
154
WHAT’S NOTABLE IN 3
NORTH DECATUR
1
THIS QUARTER?
85
4 285
5
154
20
North Decatur is an area that represents little opportunity for accessible workforce housing, with all neighborhoods being well over the 120% of AMI threshold. These intown neighborhoods have long been price prohibitive for first-time buyers, but offer great schools, proximity to Atlanta and downtown Decatur, walkable communities and great green space to those who can afford it. In Q2 2022, the Median Price increased 14% to $626,000 compared to last year. The Median Price range among neighborhoods is $489,000 to $855,000.
INTOWN ATLANTA
2ND QUARTER 2022 KEY METRICS
NEIGHBORHOODS
S INGLE -FAM ILY HOM ES 1 2 3
SALES PRICE $912,222
4 5 6 7 8 9
AVERAGE SALES PRICE % CHANGE FROM Q2 2021 +14.6%
Ansley Park + Lindridge Martin-Manor Virginia Highland + Morningside Candler Park + Lake Claire Kirkwood + Edgewood East Lake Cabbagetown + Reynoldstown Inman Park Old Fourth Ward Midtown
#UNITS SOLD 271
75
SOLD PRICE/LIST PRICE 103.2%
AVERAGE DAYS ON MARKET 5 1 2
WHAT’S NOTABLE IN
INTOWN ATLANTA
9 78
THIS QUARTER? Prime Intown Atlanta neighborhoods don’t offer many opportunities for Accessible Housing. With an area Median Price of $869,474 in the first half of 2022 (ranging from $595K-$1.3M across neighborhoods) most first-time buyers will not be able to afford to purchase a home in the Intown Atlanta area. The development of the Eastside Trail on the Atlanta Beltline has pushed these neighborhoods out of reach in recent years. Old Fourth Ward, Cabbagetown and Reynoldstown offered accessible housing as little as 5 years ago. We believe the Intown Atlanta area represents a tremendous opportunity for the City ofAtlanta to create more high-density (accessible) housing along public transit and the Beltline, while improving infrastructure to encourage alternative modes of transportation.
3
7 8
4 6 5
85 20
23
CITY OF DECATUR
2ND QUARTER 2022 KEY METRICS
NEIGHBORHOODS 1 2
S I N G LE -FA M I LY H OM E S
Decatur Oakhurst
SALES PRICE $812,500
23
78
AVERAGE SALES PRICE % CHANGE FROM Q2 2021 +12.7%
#UNITS SOLD 86
SOLD PRICE/LIST PRICE 105.5%
AVERAGE DAYS ON MARKET 4
1 78
WHAT’S NOTABLE IN 2
CITY OF DECATUR 154
THIS QUARTER? City of Decatur offers a great opportunity for top-notch schools, a thriving downtown business district, green space and walkable communities. Located just 6 miles east of downtown Atlanta, Decatur is nestled in the perfect location. For these reasons, it has long been a community that attracts buyers at a higher price point.
20
Interestingly, the Oakhurst neighborhood in Decatur has soared in price in recent years. Perhaps due to a more neighborhood feel compared to Decatur’s downtown district or to supply shortage, Oakhurst’s Median Price jumped 33.6% in the first half of 2022 over last year to $847,500.
SOUTH DECATUR
2ND QUARTER 2022 KEY METRICS
NEIGHBORHOODS
S INGL E -FAMILY HOMES
Scottdale Avondale Estates Belvedere Park 285 Candler-McAfee
1 2 3
SALES PRICE $411,265 AVERAGE SALES PRICE % CHANGE FROM Q2 2021 +16.5%
4
78
85
#UNITS SOLD 235 10
SOLD PRICE/LIST PRICE 102.4%
1
AVERAGE DAYS ON MARKET 6
78
WHAT’S NOTABLE IN
2
SOUTH DECATUR THIS QUARTER? The South Decatur area offers great opportunities for first-time buyers to find accessible housing close to the city. In particular, Belvedere Park and Candler-McAfee are worth a look. Conveniently located just south of City of Decatur, Belvedere Park posted a Median Price of $313,500 in the first half of 2022. And, Candler-McAfee, located just minutes from East Atlanta Village, came in at $351,000. Both neighborhoods have been tremendously popular with first-time buyers in recent months. For those looking for a quick commute to the east side of Atlanta and Decatur, Candler-McAfee and Belvedere Park are worth a look!
3 154 20
4
20
285
SOUTHEAST ATLANTA
2ND QUARTER 2022 KEY METRICS
NEIGHBORHOODS 1 2 3 4 5 6 7 8 9
S I N G LE -FA M I LY H OM E S
Summerhill/Peoplestown Grant Park Chosewood Park/Benteen Ormewood East Atlanta 85 East Lake Terrace Gresham Park Pennington Park/Balleau Woods Lakewood
285
SALES PRICE $458,411 AVERAGE SALES PRICE % CHANGE FROM Q2 2021 +19.5%
#UNITS SOLD 344
SOLD PRICE/LIST PRICE 101.5%
AVERAGE DAYS ON MARKET 8
154 20
2
1
4
6 5
3
WHAT’S NOTABLE IN
7
SOUTHEAST ATLANTA
9 166
THIS QUARTER?
8 285
675
75
Southeast Atlanta is a diverse area with a wide price range across neighborhoods. The Beltline adjacent neighborhoods may have priced out many first-time buyers, but there are still very affordable homes in some communities. Bouldercrest Acres/Gresham Park, located just south of East Atlanta Village is well priced at $301,050. And, while Lakewood saw a staggering 33.7% increase in Median Price compared to last year, it is still very affordable at $257,500. These accessible neighborhoods represent an opportunity for buyers to invest in real estate in today’s dollars and build equity over the next few years as property values continue to increase.
SOUTHWEST ATLANTA
2ND QUARTER 2022 KEY METRICS
NEIGHBORHOODS
S INGLE -FAM ILY HOM ES 1 2 3
SALES PRICE $352,643
4 5 6 7
Audobon Forest/Cascade Heights West End/Adair Park Oakland City/Venetian Hills Pittsburgh/Sylvan Hills East Point Hapeville College Park 85
AVERAGE SALES PRICE % CHANGE FROM Q2 2021 +17.4%
#UNITS SOLD 390
SOLD PRICE/LIST PRICE 100.2%
AVERAGE DAYS ON MARKET 10
20
20
2 1
3
WHAT’S NOTABLE IN
4
SOUTHWEST ATLANTA THIS QUARTER? Southwest Atlanta has come a long way in recent years, driven primarily by implementation of the Westside Trail of the Atlanta Beltline. It seems that every day a new development is announced, and several key parcels are prime for improvement including Murphy Crossing and West End Mall. Every neighborhood in the Southwest Atlanta area falls into our definition of accessible workforce housing, except for West End and Adair Park which are Beltline adjacent. In particular, the tri-cities area (College Park, Hapeville, East Point) has become a tremendously popular option with convenient access to restaurants, retail, public transportation and parks…all just minutes from downtown Atlanta. Houses in these neighborhoods range in Median Price from $282,750 to $372,500.
5
6
154
285
7
85
75
WESTSIDE
2ND QUARTER 2022 KEY METRICS
NEIGHBORHOODS 1 2 3 4 5 6 7
S I N G LE -FA M I LY H OM E S
Vinings Buckhead - West Underwood Hills/Westside Station 75 Grove Park + Howell Station Mosley Park + Washington Park Collier Heights Riverside
SALES PRICE $583,011 285
AVERAGE SALES PRICE % CHANGE FROM Q2 2021 -3.0%
#UNITS SOLD 269
SOLD PRICE/LIST PRICE 100.1%
AVERAGE DAYS ON MARKET 8
1 2
WHAT’S NOTABLE IN
WESTSIDE
85
THIS QUARTER? 3
The Westside has been the darling of redevelopment in recent years. Driven by the Atlanta Beltline and Westside Reservoir Park, the whole area has been ripe for investment. And, while prices have certainly increased, there are some great opportunities for first-time buyers.
7
4 6
20
5 20 285
85
Collier Heights and Washington Park represent opportunities for accessible housing, with a Median Price of $282,450 and $331,788, respectively. If convenience to downtown Atlanta and a quick commute anywhere on the west side of town is a goal, these communities should be on the radar for buyers.
MARKET ANALYSIS
2ND QUARTER 2022
CONDOS & TOWNHOMES
400 75
85
2 1
METRO ATLANTA AREA BREAKDOWN CONDOS & TOWNHOMES 1
Northwest Atlanta
2
Northeast Atlanta
3
North Decatur
4
Intown Atlanta
5
Westside
285
3
5 285
4
20
20
Our overview of the Condo and Townhome market includes 5 Metro Atlanta Areas that make up approximately 85% of the total Residential Attached sales. These areas are rich in high-density and multi-family housing. We also present Condos and Townhomes separately, because there is a substantial price difference between the two types of homes.
675
75 85
NORTHWEST ATLANTA
2ND QUARTER 2022 KEY METRICS CONDOS SALES PRICE $310,000 AVERAGE SALES PRICE % CHANGE FROM Q2 2021 +17%
#UNITS SOLD 268
SOLD PRICE/LIST PRICE 100%
AVERAGE DAYS ON MARKET 9
TOWNHOMES SALES PRICE $580,000 AVERAGE SALES PRICE % CHANGE FROM Q2 2021 +23.7%
#UNITS SOLD 69
SOLD PRICE/LIST PRICE 101.6%
AVERAGE DAYS ON MARKET 5
NORTHEAST ATLANTA
2ND QUARTER 2022 KEY METRICS CONDOS SALES PRICE $290,000 AVERAGE SALES PRICE % CHANGE FROM Q2 2021 +16%
#UNITS SOLD 143
SOLD PRICE/LIST PRICE 101.4%
AVERAGE DAYS ON MARKET 5
TOWNHOMES SALES PRICE $612,368 AVERAGE SALES PRICE % CHANGE FROM Q2 2021 +19%
#UNITS SOLD 96
SOLD PRICE/LIST PRICE 101.9%
AVERAGE DAYS ON MARKET 5
NORTH DECATUR
2ND QUARTER 2022 KEY METRICS CONDOS SALES PRICE $240,000 AVERAGE SALES PRICE % CHANGE FROM Q2 2021 +8.7%
#UNITS SOLD 143
SOLD PRICE/LIST PRICE 101.4%
AVERAGE DAYS ON MARKET 5
TOWNHOMES SALES PRICE $511,500 AVERAGE SALES PRICE % CHANGE FROM Q2 2021 +5.6%
#UNITS SOLD 42
SOLD PRICE/LIST PRICE 103.1%
AVERAGE DAYS ON MARKET 5
INTOWN ATLANTA
2ND QUARTER 2022 KEY METRICS CONDOS SALES PRICE $355,500 AVERAGE SALES PRICE % CHANGE FROM Q2 2021 +13.6%
#UNITS SOLD 412
SOLD PRICE/LIST PRICE 100%
AVERAGE DAYS ON MARKET 5
TOWNHOMES SALES PRICE $586,841 AVERAGE SALES PRICE % CHANGE FROM Q2 2021 +3.9%
#UNITS SOLD 113
SOLD PRICE/LIST PRICE 101.6%
AVERAGE DAYS ON MARKET 5
WESTSIDE
2ND QUARTER 2022 KEY METRICS CONDOS SALES PRICE $292,700 AVERAGE SALES PRICE % CHANGE FROM Q2 2021 +22%
#UNITS SOLD 196
SOLD PRICE/LIST PRICE 100%
AVERAGE DAYS ON MARKET 6
TOWNHOMES SALES PRICE $493,424 AVERAGE SALES PRICE % CHANGE FROM Q2 2021 +14.3%
#UNITS SOLD 142
SOLD PRICE/LIST PRICE 101.6%
AVERAGE DAYS ON MARKET 6
DECATUR OFFICE 715 EAST LAKE DR, DECATUR, GA 30030 404-370-0092
MIDTOWN OFFICE 1027 MONROE DR, ATLANTA, GA 30306 404-594-8700
TUCKER OFFICE 2344 MAIN ST, TUCKER, GA 30084 678-694-1375
EAST ATLANTA OFFICE 471-A FLAT SHOALS AVE SE, ATLANTA, GA 30316 404-254-5206
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