July 30th 2024.
A recent study has shed light on the fact that the average home in Atlanta is priced higher than it should be. In fact, the city ranks second in the nation for having the most inflated housing rates. According to economists from Florida Atlantic University, the housing premiums in Atlanta are at a staggering 40.4%. This means that the median price for a home in the city is a whopping $430,000, as reported by Fox 5. One of the economists, Ken H. Johnson, Ph.D., explains that this steep price can be attributed to the rapid growth of the city's population. In fact, estimates from the U.S. Census show that Atlanta was the third-fastest growing metropolitan area in 2023, according to WSB-TV.
The FAU study came to these conclusions by comparing the cost of housing on Zillow, a popular online real estate platform, to the actual selling prices of homes. This method provided a more accurate estimation of the true cost of housing in Atlanta. However, Johnson believes that the inflated prices are a result of the classic supply-and-demand dilemma. Despite this, he does not anticipate a housing crash in the city. "I don't foresee a bust," Johnson shared with WSB-TV. "Instead, I believe that we will experience a period of stagnant property appreciation in Atlanta, as well as in other cities."
According to Johnson, homeowners may not see their property values increase and may end up selling their homes for the same price they bought them for. On the other hand, Atlanta has taken steps to implement new affordability programs in order to make homeownership more attainable for its residents. As a result, the city currently ranks fifth in the nation for Black homeownership. However, the disparity between Black and white homeownership across the country remains a significant issue, with a difference of 28.6% in 2023 according to Statista.
Despite these concerns, Atlanta has made significant progress in providing affordable housing opportunities, especially for its large Black population. "Like every other major metro area in the country, Atlanta has a racial gap in terms of homeownership, wealth, and income," explained Rob Warnock, a senior research associate at Apartment List, to Saporta Report. "But in comparison to other large metros, Atlanta has a relatively high Black homeownership rate of over 50%."
However, the rising costs of homeownership still pose a challenge for residents. This is becoming an increasingly important issue across the state of Georgia.
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