ATLANTA - According to economists at the National Association of Realtors, the metro Atlanta area is the best possible place to buy a house in 2023 based on a variety of factors.
That’s good news for prospective home buyers, but may also be good news for home sellers as well.
FOX 5 real estate expert John Adams joined Good Day to break down what he thinks were the reasons Atlanta took the top spot.
1. Better Affordability
For decades, the overall cost of living and availability of cheap land has caused real estate in metro Atlanta to be more affordable than in other major cities. We have no natural boundaries.
In contrast, the island of Manhattan is already completely developed, so there is no land left to build on.
2. Percentage of Renters Qualified to Buy
Partially due to the lower cost of the finished product, the percentage of renters who have the ability to qualify for the purchase of a home is substantially higher in metro Atlanta. That bodes well for market stability here as opposed to places like Portland and San Francisco, where far fewer renters are upwardly mobile
3. Robust Job Market
Georgia and metro Atlanta have continued their streaks of major economic development deals, many of them in the burgeoning electric vehicle and battery industries, juiced by billions in taxpayer-funded incentives at the federal, state and local levels.
Since the Fed a year ago started hiking short-term interest rates to check inflation, the state has added 182,200 jobs. But higher interest rates slow growth and make it more costly to borrow money — and that raises the stakes for investment of all kinds, including hiring.
4. Technology Sector is Strong & Growing
During a nationwide hiring spree for technology jobs last year, Atlanta is among the top 10 markets for most tech jobs added, according to data from IT trade association CompTIA.
About 44,500 tech jobs were posted in the Atlanta market in the past year. That puts Atlanta almost on par with Seattle, the home of Amazon and Microsoft - both of which are now expanding here.
5. Telework Jobs Are Plentiful Here
Teleworking has a different impact on affordable versus expensive areas. Data shows that people continue to embrace teleworking. An affordable area with many remote jobs can attract more movers.
The bottom line is, the metro Atlanta area will not have a housing collapse in 2023. If you are waiting for lower prices, get over it.
The U.S. population is still growing, housing inventory remains historically low, and home builders are pulling back. All of these work to make home prices unflexible downwards. To make matters even more complex, it looks like more, not less, inflation is in our future.
Don't expect home prices to drop in any of these top 10 markets, including metro Atlanta!