Apartment prices rise as much as 25 percent, as talks continue on housing affordability

By David Pendered

Apartment rental prices have spiked by 25 percent in the past year in a neighborhood near Lenox Square and by 16 percent in and near Atlantic Station, according to a new report by rent.com. These figures provide context for this summer’s continuing conversation about affordable housing.

Apartment rates have risen more than 16 percent in the Atlantic Station area in the past year, according to a report by rent.com. Credit: David Pendered

Rent.com’s report is a market-based reality check on prices for rental homes in Atlanta and across the country. This report, The 2019 National Apartment Rent Price Analysis, is all about prices – it doesn’t wade into the policy discussions over affordability because that’s not its objective.

Those policy discussions are to resume for the summer starting June 5, when Atlanta Fed President Raphael Bostic is to headline the quarterly meeting of the Atlanta Regional Housing Forum. Later this month, Bostic again is to headline a conversation, this one at the Atlanta Fed on the release of The State of the Nation’s Housing, 2019 report by the Joint Center for Housing Studies of Harvard University.

Harvard’s report, in particular, has been a bellweather since its start in 1988. Last year’s edition indicated local affordability pressures continued despite the region leading the nation for housing permits and in developable land available for new housing.

Rent.com presents the five Atlanta neighborhoods that have seen the highest percentage of price hikes in a breakout of the national report. The five appear under a headline that states, Don’t procrastinate or you might get priced out of your dream neighborhood:

Pine Hills

Apartment prices in the Pine Hills neighborhood have risen just over 25 percent in the past year, the largest rate hike recorded by rent.com. Credit: David Pendered

• Price increase over the past year: 25.29 percent
• Average rent for one-bedroom in Pine Hills: $1,291
• Average rent for one-bedroom in Atlanta: $1,492

Downtown Cumberland (SunTrust Park)

• Price increase over the past year: 23.05 percent
• Average rent for one-bedroom in Downtown Cumberland: $1,710
• Average rent for one-bedroom in Atlanta: $1,492

North Buckhead

• Price increase over the past year: 21.88 percent
• Average rent for one-bedroom in North Buckhead: $1,701
• Average rent for one-bedroom in Atlanta: $1,492

Atlantic Station

An urban camper found a shady spot near Atlantic Station, on 17th Street, to spend at least some time on Memorial Day weekend. Credit: David Pendered

• Price increase over the past year: 16.49 percent
• Average rent for one-bedroom in Atlantic Station: $1,744
• Average rent for one-bedroom in Atlanta: $1,492

Berkeley Park

• Price increase over the past year: 16.05%
• Average rent for one-bedroom in Berkeley Park: $1,531
• Average rent for one-bedroom in Atlanta: $1,492

As a city, Atlanta didn’t make the top five in any of rent.com’s categories, which included the cities with the steepest increases or declines in rent.

Atlanta ranked 38^th on rent.com’s list of the nation’s 100 most-populated cities, with a reported population of 486,290 residents. The average prices and rate hikes over the past year, representing the city’s entire rental apartment market include:

• Studio: $1,404; 2.9 percent increase
• One bedroom: $1,575; 5.3 percent increase
• Two bedroom: $2,287; 12 percent increase

The report was based on a review of prices posted on Apartment Guide and Rent.com for Atlanta neighborhoods that had a sufficient number of listings, according to statement from rent.com. The review period covered from March 2018 to March 2019 with the goal of determining the areas that had the highest rate hikes in the market of one-bedroom apartments.

Apartment rental prices in the Berkeley Park area are up about 16 percent in the past year, according to a report by rent.com. Some units have views of the Atlanta Water Works. Credit: David Pendered