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If you’re like most investors, you probably spend a good amount of time thinking about the appreciation of your properties.
This is one of the reasons that investors from outside of Atlanta buy rental homes here: to earn money in the short-term through consistent and recurring rental payments, and to earn money in the long-term, through growing appreciation.
Remote investors are most successful when they work with local Atlanta property management teams who can communicate market trends and track financials.
Here’s what you should know about Atlanta’s property appreciation trends, if you’re investing from afar.
Choosing Atlanta for Appreciation Potential
As a remote investor, you can choose any market that looks good. And while factors like cash flow, tenant demand, and local management options are crucial, one variable should never be overlooked: appreciation.
Appreciation, as you know, represents the increase in a property’s value over time. Unlike rental income, which provides regular cash flow, appreciation builds long-term wealth through equity growth. It’s often realized upon refinancing or selling the property, and in some cases, it can far outweigh cash flow in overall return on investment (ROI).
There are two types of appreciation that matter:
Market Appreciation. Driven by macroeconomic and local trends such as population growth, job creation, infrastructure development, and limited housing supply.
Forced Appreciation. Results from property improvements and operational efficiencies that increase value beyond market trends. Here, we’re talking about renovations, better property management, or increasing rents.
As a remote investor approaching the Atlanta rental market, you may be tempted to pursue properties with high cash-on-cash returns in lower-cost neighborhoods. But focusing too narrowly on short-term cash flow can be short-sighted. Markets that generate excellent cash flow often lack strong long-term appreciation potential due to stagnant economies, low population growth, or oversupply of housing.
Instead, consider these reasons why appreciation should play a central role in your investment decisions:
Equity Growth Is a Key Wealth Driver
Over time, appreciation builds significant equity, which you can later tap into through refinancing or a 1031 exchange. Properties in appreciating markets like Atlanta can double (or more) in value over a decade, supercharging your net worth.
Appreciation Compounds With Leverage
When you finance a property with a mortgage, you benefit from appreciation on the full value of the asset—not just your down payment. A 5% annual appreciation on a $300,000 property equates to $15,000 in equity gain per year, even if you only invested $60,000.
Stronger Markets Withstand Economic Downturns
High-appreciation markets like Atlanta often have resilient economies, diverse industries, and ongoing population growth. These factors help protect your investment during downturns, maintaining property values and reducing vacancy risk.
Here’s What’s Happening with Atlanta Appreciation
Over the past decade, Atlanta's home prices have experienced significant appreciation. This has been happening in markets all across the country, especially as we study that data coming in since the worst of the pandemic in 2020. However, Atlanta is performing especially well. Home prices have increased steadily and the city’s growing home values have surpassed the national average by quite a bit.
While home values in other markets have steadied themselves or even begun to drop, in Atlanta our recent numbers are still strong. There have been fluctuations, but they’ve been manageable, and the home prices and values are still incredibly strong. According to expert data, in April 2024, the average home sales price was approximately $425,000, nearing the record high of $432,055 set in June 2022.
In addition to steady home growth, we also have recent market fluctuations to consider. While long-term trends show growth, the market has seen some adjustments in recent months. In December 2024, metro Atlanta home prices experienced a slight decline, attributed to elevated mortgage rates dampening buyer demand. However, forecasts suggest that with mortgage rates potentially stabilizing around 5.2% in 2025, the market may regain momentum.
Key Factors Driving Property Appreciation in Atlanta
Remote investors from all over the country (even all over the world) are coming to Atlanta for their next investments for a lot of reasons. Appreciation is one of those reasons. Let’s take a look at some of the factors that have contributed to our impressive property appreciation numbers.
Population Growth
It’s hard to ignore this one particular metric, because it’s been so meaningful. Atlanta's population has been on an upward trajectory, with the metro area adding over 62,700 new residents between April 2023 and April 2024. This is an increase to numbers that were already growing. Over the last five to ten years, more and more people have been choosing Atlanta as their place to be. This influx is driven by factors such as corporate relocations, a thriving job market, and the city's appeal to remote workers seeking affordability and quality of life. We have also seen a growing number of retirees come to town, seeking good weather, plenty of cultural opportunities, and the low-maintenance ease of renting instead of owning a home.
Economic Expansion
The city's economy continues to diversify and expand. In 2023 alone, Atlanta added over 148,000 new jobs, with a 5% annual growth rate, outpacing the national average. There are established companies as well as new businesses and start-ups coming to town, and they’re experiencing early success. Sectors like technology, healthcare, and logistics are particularly robust, attracting young professionals and talented tech geniuses, driving housing demand. We expect the local economy to continue growing, even with national economic news somewhat uncertain.
Infrastructure Developments
It’s much easier to invest in a city that’s investing in itself. That’s Atlanta, and it’s contributing to the impressive appreciation numbers here. Ongoing infrastructure projects are enhancing property values. The BeltLine, a 22-mile multi-use corridor, has spurred development in adjacent neighborhoods, with property values increasing by an average of $50,000 since construction began. Additionally, the expansion of MARTA's transit lines is improving connectivity and making surrounding areas more desirable. We have an international airport that’s well-trafficked, and the public transportation and road health are impressive, especially compared to other markets that are struggling with funding and capacity.
Atlanta Neighborhoods to Watch
For remote investors, identifying neighborhoods with strong appreciation potential is an important part of a successful investment strategy. This is one of the reasons that your Atlanta property management partnership is so valuable. We know where well-qualified tenants want to live.
Consider the following areas:
Old Fourth Ward. Known for its proximity to the BeltLine and diverse and growing community, this neighborhood’s home values have benefited from significant gentrification and price increases.
West Midtown. Once an industrial area, it has transformed into a hub for the arts and dining, attracting professionals and tenants who are interested in a creative lifestyle with a lot of local options for coffee shops, restaurants, and galleries.
Kirkwood and Edgewood. These eastside neighborhoods offer a mix of historic charm and modern amenities, appealing to a diverse demographic.
Talk to us about location before you invest from afar. We can tell you about the neighborhoods where home values are most likely to continue increasing.
How to Measure Success Beyond Cash Flow
For remote investors, measuring a property’s success should include both monthly performance and long-term appreciation. Here are the metrics we talk about with our investors in Atlanta real estate.
Net Operating Income (NOI): Ensure operational efficiency.
Cash-on-Cash Return: Reflects current income performance.
Annual Appreciation Rate: Track value growth over time.
Equity Build-Up: Consider loan amortization plus appreciation.
Total Return on Investment (ROI): Combine cash flow, appreciation, and tax benefits.
Keep in mind: a property yielding 6% cash-on-cash with 5% annual appreciation may outperform a property that yields 10% cash-on-cash but flatlines in value. Let’s talk about your specifics. Get in touch with us at Property Services of Atlanta for a customized look at your financial performance and potential.
Investment Strategies for Remote Investors
What should you be doing to maximize your income and attract long-term appreciation?
Here’s our checklist:
1. Leverage Technology
Utilize online platforms to research property values, rental yields, and neighborhood trends. Virtual tours, drone footage, and digital inspections can provide a comprehensive view of potential investments.
2. Partner with Local Experts
That’s us. If you’re investing in Atlanta real estate remotely, you need a local partner. Collaborate with Atlanta-based real estate agents, property managers, and contractors who have in-depth knowledge of the local market. Their expertise can help navigate the complexities of property acquisition and management.
3. Consider Long-Term Appreciation
While short-term market fluctuations are inevitable, Atlanta's long-term growth prospects remain strong. Investing in properties with potential for value appreciation over time can yield substantial returns.
Atlanta's real estate market presents promising opportunities for remote investors. By understanding the factors driving property appreciation and strategically selecting neighborhoods poised for growth, investors can make informed decisions that align with their financial goals. As the city continues to evolve, staying informed and adaptable will be key to capitalizing on Atlanta's dynamic real estate landscape.
We would love to hear more about your investment goals and talk about the opportunities you might find in Atlanta. We can also further discuss appreciation, and what you have to gain with increasing home values.
Contact our talented team at Property Services of Atlanta.