REAL ESTATE FORECAST
ATLANTA BY THE NUMBERS
#1 BEST STATE TO DO BUSINESS1
#1 #2 #3 #5 #6 #1 #1
For the eleventh consecutive year, Georgia claims the top spot, a testament to its robust pro-business environment.
#1 MOST EDUCATED CITY IN THE US2
Home to major colleges like Emory University, Georgia Institute of Technology and Georgia State University, it’s no surprise that Atlanta is a highly educated city.
#1 PLACE FOR YOUNG PROFESSIONALS TO START A CAREER3
Atlanta has a lot of job opportunities at companies that are rated at least 4 out of 5 stars on Glassdoor, along with plentiful entry-level jobs.
#2 MOST LIVABLE CITY IN THE US4
Atlanta has been consistently listed as a top ten North American city in the index for more than a decade.
#3 CITY FOR STEM PROFESSIONALS5
The top metro areas for STEM professionals have highquality schools, an abundance of jobs, and high pay.
#5 MOVING DESTINATION IN THE COUNTRY6
Every year, thousands of Americans decide to pack up their things and move to a another state, Georgia is once again a top destination with 312K new residents.
#6 LARGEST METRO IN THE U.S.7
Atlanta recently passed Washington D.C. and Philadelphia to become the nation’s sixth-largest metropolitan region. Atlanta’s 29-county region grew by 1%, reaching 6.3 million.
WORLD-CLASS ENTERTAINMENT CENTER FOR SPORTS8
Atlanta will be a host city for the 2026 FIFA World Cup and in 2028, Mercedes-Benz Stadium will host Super Bowl LXII.
LEADER IN LIFE SCIENCES9
The life science industry in Georgia employs nearly 215K workers and has a combined $50.2B in total economic impact on the state’s economy.
WORLD’S BUSIEST AIRPORT, AGAIN10
Upwards of 80% of the United States’ population can be reached within a two-hour flight.
BIG COMPANIES IN THE BIG CITY11
70% of Fortune 500 companies have a presence in Metro Atlanta with 31 Fortune 1000 headquartered here.
2024 RECAP
Metro Atlanta’s six core counties—Cherokee, Cobb, Dekalb, Forsyth, Fulton, and Gwinnett—experienced a 41.2% increase in available homes for sale compared to the previous year, driven by a 17.8% rise in new listings and a 1% decline in closed sales. From March onward, inventory steadily grew while sales declined. Despite interest rates peaking in March and April, the lowest rates of the year in September coincided with 1,000 fewer sales, underscoring that increased inventory stems from both heightened supply and tempered buyer activity. Meanwhile, pending sales remained relatively stable, decreasing by just 0.7%. The average price per square foot for sold properties increased by 3.3%, and the average days on market rose by 12.8% from 39 to 44 days. Notably, while the average sold price increased by 5.6%, the average active price decreased by 9.9%. These trends indicate a more competitive market with higher inventory and slight price adjustments. The luxury real estate market has experienced remarkable growth over the past year, with homes for sale priced $1M+ increasing by 19% and pending sales rising by 18.6%. Sold properties also saw a significant boost, climbing 19.6%. These gains reflect a thriving market with strong buyer demand and expanding inventory, showcasing the enduring appeal of luxury real estate.
2025 NATIONAL HOME PRICING PREDICTIONS12
2025 OUTLOOK
The housing market in 2025 is expected to grow at a similar steady pace to what we’ve seen this year. While we may not see dramatic changes, the continued growth offers a stable environment for both buyers and sellers.
Mortgage interest rates are expected to improve slightly, but they will likely stay in the mid-6% range. This means borrowing costs will still be manageable for many buyers, and sellers can feel confident that buyers will remain active in the market.
Home sales nationally are predicted to increase by 5-10%, with experts leaning toward a growth rate of around 7-8% in Atlanta. This slow and steady rise suggests there will be more activity in the market without overwhelming competition. For buyers, this means more options, and for sellers, it’s a sign that their homes will still attract offers.
Home prices are also expected to go up, but not by too much—somewhere between 3-5%. This gradual increase means homeowners will continue to see their property values grow, while buyers can still find affordable options without feeling priced out.
Overall, the 2025 housing market looks like it will continue to be predictable and reliable. With stable interest rates, more homes being sold, and modest price increases, buyers and sellers can approach the market with confidence. Whether you’re planning to buy, sell, or just keep an eye on the trends, next year looks like a good time to make a move. Looking ahead, geopolitical factors and generational wealth transfers are expected to influence the luxury market in 2025.
THE EFFECT OF LOWER INTEREST RATES ON REAL ESTATE
Reduced mortgage rates improve affordability by lowering monthly payments, making homeownership more accessible for buyers by easing debt-to-income ratio requirements. Additionally, these lower borrowing costs often increase demand for homes, driving sales and intensifying competition, particularly in markets where housing inventory is limited. In 2024, many of these trends were already evident in the Metro Atlanta area. The number of active listings increased and consistently grew as 2024 progressed.
Homeowners who were reluctant to sell during periods of high interest rates may feel encouraged to list their properties, leading to an uptick in available inventory. However, homeowners who secured historically low interest rates during the pandemic may still hesitate to sell, a phenomenon known as the “lock-in effect.” Surveys, such as one from Bankrate, reveal that 35% of homeowners would feel more comfortable selling if mortgage rates dropped below 6%. However, nearly 40% of all homes in the US don’t have a mortgage and aren’t impacted by the “lock-in” effect.13 Nearly half of all residential mortgage payers in the U.S. have paid off at least half their loans, leaving many with six-figure levels of wealth available to leverage for new home purchases.14
SURGE IN INVENTORY
CHARACTERISTICS OF HOME BUYERS
In 2024, the demographics of home buyers have shifted significantly. The median age of buyers reached an all-time high of 56 years, with first-time buyers averaging 38 years and repeat buyers 61 years. Married couples made up 62% of buyers, while single females increased to 20%, and single males decreased to 8%.
A notable 73% of buyers did not have children under 18 at home, the highest recorded share. Multigenerational homes were purchased by 17% of buyers, primarily for cost savings and to care for aging parents. First-time buyers dropped to 24% of the market, the lowest since 1981. The main reasons for purchasing a home were the desire to own (22%) and favorable timing (43%).15
The Atlanta real estate market is undergoing a significant transformation, with a noticeable increase in housing inventory. In 2024, the number of homes for sale has jumped by 41.2% compared to 2023. This means buyers now have more options, making the market more balanced. This is great news for those who have been dealing with fierce competition in recent years. With more choices available, buyers can take their time and make more informed decisions, which could lead to better purchasing conditions.
For sellers, this shift means they might need to adjust their expectations. With more homes on the market, competition is stiffer, so pricing and presentation will be crucial to securing a sale. Despite these changes, the market remains robust. Average sold prices have increased by 5.6%, and the average price per square foot has risen by 3.8%. Plus, Atlanta’s ongoing appeal as a relocation destination continues to drive demand.16
PRICE APPRECIATION
In 2025, home price appreciation in Atlanta is expected to be steady, with anticipated growth rates of 3-5%. This moderate increase reflects a more stable and normalized market compared to the rapid price hikes seen in recent years. Atlanta’s robust economy and ongoing development are key factors supporting this growth, providing a well-priced inventory that encourages buyer activity. Despite a slight increase in market absorption rates, the limited housing supply continues to sustain price appreciation, making Atlanta an attractive market for both buyers and sellers.
NATIONAL VS LOCAL ECONOMY
Georgia’s economic outlook for 2025 is promising but indicates a slower growth rate compared to 2024. Georgia’s economy is projected to grow by 2.4% in 2025, down from 3.1% in 2024. This growth rate still surpasses the national average, which is expected to be 1.6%.
Several factors contribute to this outlook. The Federal Reserve’s policy shift to control inflation has been effective, reducing inflation from 8% in 2022 to a projected 3% in 2025. This policy adjustment, along with a resilient labor market and recent economic development successes, will support Georgia’s continued growth. Georgia’s unemployment rate is projected to rise slightly to 4%, still lower than the national rate of 4.3%. 17
THE LUXURY MARKET
The luxury housing market has shown remarkable resilience in 2024, despite a broader stagnation in the real estate sector with the number of homes sold for $1 million or more rising by 19.6% compared to 2023. Many luxury home purchases were made in cash, insulating this market segment from high mortgage rates. The booming stock market, with the S&P 500 up 26.9% and the Dow Jones up 17.9%, has contributed to the wealth of potential luxury home buyers.
Experts predict that the luxury market will be invigorated by generational wealth transfers. A recent report indicates that approximately $31 trillion will be transferred by 1.2 million individuals over the next decade, with $20 trillion expected to be inherited by 155,000 people. The majority of this wealth is anticipated to be received by older millennials and younger Gen Xers.18
ATLANTA’S GROWTH HORIZON
Atlanta’s real estate market is poised for continued growth, fueled by its dynamic economy and emerging industries. The life sciences sector, in particular, is making waves, attracting investment and talent that will further bolster the city’s reputation as a hub for innovation.
Additionally, transformative developments in downtown Atlanta, such as the revitalization of key areas and mixed-use projects, are creating vibrant spaces that appeal to residents and businesses alike. The upcoming FIFA World Cup is another catalyst for growth, bringing global attention and infrastructure improvements to the city. Combined with Atlanta’s well-established industries in film, technology, and logistics, these factors position the city as a premier destination for economic opportunity, cultural vibrancy, and a thriving real estate market.
$3.33B in Sales Volume
5,688 in Closed Units
as shown in 2024.
$638,501*
can we help you in 2025?
This forecast provides macro trends and an outlook for the national and Atlanta market. Each submarket and home type has nuanced differences.
To understand the value of your home or your neighborhood, reach out today for a customized market update.
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