As we start the new year, I want to share some of my thoughts on the Atlanta market in 2025.
We ended 2024 with an annual median sales price growth of 0.8%. In November, the number of homes for sale was at an annual increase of 39%, and months of supply was 3.6, a 38.5% increase from 2023. The average days on the market in November were 42, up 40% from 2024.
As you can see, we ended the year with a significant increase in inventory and diminishing demand. I suspect much of this is due to buyers sitting on the sidelines for lower rates.
While we are ending the year slower, 2025 looks promising for the Atlanta housing market.
Primary Factors Driving the 2025 Atlanta Housing Market
Population Growth & Demographics
Atlanta has been one of the fastest-growing metro areas in the country, attracting people from other regions due to its strong job market, relatively affordable cost of living, and favorable climate.
Estimates from the Atlanta Regional Commission show that, on average, metro Atlanta is gaining 5,000 people per month. Population growth will continue to be the biggest driver in 2025. This trend should continue through 2025, keeping housing demand healthy.
Likewise, as the city population grows, more residents may look toward suburban areas like Alpharetta, Marietta, and Roswell, also driving growth there. Demand for mixed-use developments integrating residential, retail, and office spaces will also add to steady growth.
Employment & Economic Drivers
Major companies have established significant presence in and around Atlanta (e.g., Microsoft, Google, and other tech firms). If new corporate expansions or relocations continue, this will bolster job opportunities, attract additional population, and support housing demand.
Atlanta’s economy encompasses technology, logistics, film and entertainment, healthcare, and finance. This diversification will help insulate the region from economic sector fluctuations and stabilize overall housing demand.
Interest Rates & Lending Environment
The Federal Reserve’s monetary policy has impacted the housing market over the last few years. The average estimates for a 30-year fixed mortgage rate in 2025 ranges between 5.9% and 6.6%. If mortgage rates begin falling in 2025, more buyers will be able to enter the market with increased purchasing power, sustaining or increasing home prices.
Conversely, If banks begin to tighten lending standards in response to economic conditions, it may be harder for some buyers to qualify for mortgages. This can dampen home price growth but also create opportunities for well-qualified buyers.
Housing Supply & New Construction
Over the past few years, Atlanta has seen a shortage of affordable housing, particularly for first-time buyers. Persistent low inventory can drive prices up further and create a competitive market. However, within the last quarter of 2024, we have seen a steady increase in supply, which will help support the housing shortage.
Likewise, an ongoing surge in new construction (condos, single-family homes, and mixed-use projects) could mitigate supply constraints. One example is downtown Atlanta, where several major revitalization projects are underway.
Nevertheless, there are great opportunities if you know where to look. Here are examples of two great opportunities for luxury condos in Midtown: 845 Spring Street NW and 1156 Piedmont Ave.
Leasing Market
If homeownership becomes less attainable due to rising prices or stricter lending, the leasing market could stay robust, supporting demand for multi-family developments. There are some excellent leasing opportunities available in Midtown right now. For example, I have four luxury leases available at the Mayfair, such as this designer studio.
Furthermore, there are many investment opportunities; Atlanta has historically attracted individual and institutional investors due to its growing economy. If rental yields remain attractive and vacancy rates stay low, the city could continue to draw investment capital.
Transit & Infrastructure
Projects like the BeltLine and other transportation initiatives (including expansions to public transit) can transform neighborhoods and potentially boost property values in underdeveloped areas in 2025. Connecting with a seasoned real estate agent like me is crucial because I can help guide you to up-and-coming areas.
Moreover, Atlanta’s push toward technological infrastructure (such as connectivity, green space, and municipal partnerships) can drive long-term growth in specific corridors and up-and-coming neighborhoods.
Conclusion
Cautious Optimism: Most economic indicators—population growth, corporate expansions, and a steady job market—point to continued demand for housing in the Atlanta area.
Mindful of Rates & Policy: The pace at which mortgage interest rates move will significantly influence buying power and overall market momentum.
Localized Markets: Atlanta’s unique, under-the-radar neighborhoods and suburban markets will offer opportunities. Affordability remains a concern, so areas offering relatively affordable entry points will likely see stronger demand and appreciation potential.
Overall, the broader fundamentals suggest Atlanta could see moderate to strong price growth in 2025. Local economic factors, interest rate policies, and national economic conditions will all play crucial roles. If you’re considering buying or investing, make sure to enlist an experienced realtor who has a pulse on the local market, insights on neighborhood-level data, and knowledge of local development projects.
As always, please contact me if you are ready to buy or sell 2025.