Jason Hartman profiles one of his favorite markets, Atlanta. As the capital and most populous city in the state of Georgia as well as the urban core of one of the fastest-growing metropolitan areas in the United States. Considered a top business city and transportation hub, Atlanta is the world headquarters of The Coca-Cola Company, AT&T Mobility, and Delta Air Lines. The surrounding area contains additional corporate headquarters, including Home Depot and UPS. Atlanta has the nation’s third largest concentration of Fortune 500 companies, and more than 75 percent of the Fortune 1,000 companies have a presence in the Atlanta metropolitan area.
Our analysis of Atlanta as an investment opportunity will focus on demographics, the overall property market, and the emergence of attractive micro-markets. Three key attributes make Atlanta a tremendous opportunity for investors. These are favorable demographics, superior quality of life, and an attractive business climate. Any of these three factors can help an investment market, but the combination of all three create an unparalleled opportunity like that is available in Atlanta.
The combined metropolitan area for Atlanta has a population of 5.4 million people, which represents growth of 1.1 million people from 2000 through 2008. The population of Atlanta is expected to grow to 7.7 million residents by the year 2025. The driving force behind this rapid growth is the strong business environment and employment opportunities in and around the city.
The median income for a household in the city was $47,464 and the median income for a family was $59,711. About 21.8% of the population and 17.2% of families lived below the poverty line. When combined with the low cost of living in Atlanta, many residents have significant amounts of disposable income that help support vibrant culture and entertainment options throughout the city.
Atlanta is growing very quickly, and has a very sizable affluent population that will only grow in relevance as more commerce concentrates in Atlanta. As an ideally placed business and transportation hub for the southeastern United States, Atlanta is ascending on a growth path while many former industrial cities are experiencing significant economic contraction.
Atlanta is home to one of the largest concentrations of colleges and universities in the country. The city has more than 30 institutions of higher education, including the Georgia Institute of Technology, a predominant engineering, and research university that has been ranked in the top ten public universities since 1999 by US News and World Report, and Georgia State University.
Atlanta is also the home to four major league sports teams, plays host to the PGA player’s championship, and contains the world’s largest aquarium in downtown Atlanta.
One of the key attributes that attracts so many people to Atlanta is its superior quality of life. With a strong business environment, reasonable commute, extensive culture, and educational institutions, there is no shortage of opportunity for people of varying interests.
As the unofficial capital of the southeast United States, the Atlanta represents a shining gem of opportunity. An example of Atlanta’s importance is its $270 billion GDP, which represents nearly 2/3 of the Georgia Economy. This is largely why Atlanta is among the top-3 major cities in relocation/growth. People are choosing relocation to Atlanta because of its superior business environment.
The importance of Atlanta’s business climate cannot be under-stated, as there will be many companies redeploying resources out of high tax states and into more business friendly environments over the coming years. Atlanta is standing directly in the middle of this progress trajectory, and investors who are positioned to ride this wave can realize tremendous gains.
Atlanta has a highly diverse base of employment. With nine fortune 500 company headquarters in the city, there is no shortage of employment opportunity. This broad base creates much more economic stability for Atlanta than is experienced in many industrial cities that have become dependent on a small number of companies or industries. As the business hub of the southeast United States, Atlanta can be counted on to continue on its growth trajectory for a considerable amount of time.
Atlanta is one of eight U.S. cities classified as a “beta world city” by a 2008 study at Loughborough University, and ranks third in the number of Fortune 500 companies headquartered within city boundaries, behind New York City, Houston, and Dallas. Several major national and international companies are headquartered in Atlanta or its nearby suburbs, including three Fortune 100 companies.
The housing market in Atlanta has been damaged by the financial crisis, similar to most major metropolitan areas. The key difference is that the strong economy of Atlanta and continued population growth makes has created a large population of prospective renters. This presents a rare window of opportunity for investors to capture good cash flow, excellent return on investment, and favorable location in one of the fastest growing metropolitan areas in the country.
Atlanta offers the opportunity for a tremendous ROI one-two punch. The first step is short-term cash flow on a superior investment property. The second piece is long-term appreciation from an investment that is located in a rapidly growing metropolitan area. There are multiple micro-markets in and around Atlanta that are very attractive at the current time. Are you ready to take advantage of them?
Quote for the day: “Invest in places that make sense so you can afford to live in places that don’t make sense” – Jason Hartman
