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Leslie Appleton-Young, an economist with FMLS, joins host Carol Morgan for this week’s Atlanta Real Estate Forum Radio episode. In this podcast segment, Appleton-Young discusses the housing market’s current state and changes in real estate trends following the 2024 election.
Current State of Atlanta’s Housing Market
“Georgia is leading the south and the rest of the country in terms of job growth and opportunities and quality of life, and all of those things that kind of feed into the demand for housing,” said Appleton-Young. “The issue is that price appreciation has been extremely robust as well over the last 10 years or so particularly since the pandemic and it’s really created an affordability issue.”
Appleton-Young emphasizes that higher mortgage rates are also to blame for the housing affordability issues in Atlanta. The rates were close to 2% in 2021 and 2022 but jumped to around 7% last year. In short, the demand for housing is robust; however, the supply of affordable options is somewhat constrained.
“I want to say one of the fundamental realities of the market right now is how many current homeowners are locked into their current mortgage,” said Appleton-Young. “There are numbers floating around, but one of the ones I found credible was that 80% of the mortgagees have a rate at 4% or less. So, what that means is, when rates are as they currently are, at 6.7%, they’re not thinking about selling their home. They may not love their home, but they love their mortgage.”
How are resale properties competing with new construction homes? Appleton-Young doesn’t believe that there is competition, specifically in downtown Atlanta, because there is not much room for new construction. The existing resale properties often need some time and investment to meet modern expectations, but the potential is there. As you venture outside the perimeter, opportunities for new development expand, and families have the opportunity to purchase larger homes with larger yards.
Evolving Trends and Buyer Demographics
Looking to buy your home in cash? All-cash buyers have an advantage in the housing market. In Atlanta, the median home price is $514,000, a significant difference from Georgia’s median price of $350,000. Many buyers are relocating from states like California, where the median price surpasses $1 million, so Atlanta’s prices seem affordable in comparison. Long time Georgia residents are getting more and more frustrated with this trend, not only because it lessens the supply, but also because it affects affordability as well.
Appleton-Young mentions that townhome development has significantly shaped the Atlanta market, offering lower cost per square footage and enticing amenities. Additionally, more single buyers, especially females, are home shopping near areas with highly rated education, increased walkability and top safety scores. Multigenerational housing is in demand as well, with many families looking for properties that include carriage houses or even a third floor to accommodate more individuals living together.
How the Real Estate Sector Will Be Impacted by the 2024 Presidential Election
President-elect Donald Trump plans to impose tariffs on overseas goods, as well as from Canada and Mexico. If everything else remains the same, those higher taxes will still be inflationary, passing down the costs to consumers.
Appleton-Young said, “The other issue about limiting and reducing the labor supply, particularly in lower wage jobs in agriculture and in construction and so on, is also going to put upward pressure on prices in the homebuilding industry.”
The housing market is very rate-driven and relies on the balance of two factors – prices and employment. The federal government has a dual mandate that attempts to keep prices low and employment opportunities flowing. Appleton-Young anticipates that rates will come down this year but says that homebuyers should watch for official updates as the 2025 year progresses.
Tune in to the full interview to learn more about the Atlanta housing market and FMLS’ predictions for the future. For more about FMLS, visit www.FirstMLS.com.
About FMLS
FMLS is the nation’s fourth largest multiple listing (MLS) service. Since 1957, it has served over 57,000 real estate professionals, including agents, appraisers, brokers and home inspectors. FMLS is privately owned and not affiliated with the National Association of Realtors.
Podcast Thanks
Thank you to Denim Marketing for sponsoring Atlanta Real Estate Forum Radio. Known as a trendsetter, Denim Marketing has been blogging since 2006 and podcasting since 2011. It is currently working on strategies for the Google Helpful Content update and ways to incorporate AI into sales and marketing. Contact them when you need quality, original content for social media, public relations, blogging, email marketing and promotions. A comfortable fit for companies of all shapes and sizes, Denim Marketing understands marketing strategies are not one-size-fits-all. The agency works with your company to create a perfectly tailored marketing strategy that will suit your needs and niche. Try Denim Marketing on for size by calling 770-383-3360 or by visiting www.DenimMarketing.com.
About Atlanta Real Estate Forum Radio
Atlanta Real Estate Forum Radio, presented by Denim Marketing, highlights the movers and shakers in the Atlanta real estate industry – the home builders, developers, Realtors and suppliers working to provide the American dream for Atlantans. For more information on how you can be featured as a guest, contact Denim Marketing at 770-383-3360 or fill out the Atlanta Real Estate Forum contact form. Subscribe to the Atlanta Real Estate Forum Radio podcast on iTunes, and if you like this week’s show, be sure to rate it.
