Luxury apartment buildings are taking over Atlanta.
Nearly a 900 percent increase between 2012 and 2015 in the number of high-end high rise buildings.
That information is according to a study by “Rent Café.”
The question is, is the luxury market inching toward over-saturation and how are middle-income people supposed to live in a city of rising rents?
Inside the walls of “The Brady” on Atlanta’s popular Westside fancy finishes, stainless steel, and resort style amenities represent the new normal in Atlanta.
“Everyone’s looking for more experience in their life versus necessarily a bigger house and the white picket fence,” said Jay McGinnity, Vice President of Perennial Properties.
That change in focus has developers like Jay McGinnity building high-end units across the city.
It’s fueled by elevated construction costs and luxurious demand from millennials and empty nesters.
“We have all of the housing being built for a tiny portion of the population,” said John O’Callaghan, President and CEO of Atlanta Neighborhood Development Partnership.
It is a growing trend that concerns Atlanta Neighborhood Development Partnership President and CEO John O’Callaghan.
“We need to be thoughtful in our public policy to make sure we don’t become San Francisco which is a beautiful city but a city that you have to visit because you can’t afford to live there,” added O’Callaghan.
Demand is still high but when is it too much?
Is the Atlanta market inching toward over-saturation?
Are the middle income priced out of the market?
Not according to McGinnity as inventory and demand begin to meet again.
“I would expect you would start to see rents leveling out towards the end of this year or early next.”
Atlanta just passed an ordinance in early May requiring developers who use public dollars to set aside 15 percent of their units for affordable housing.
It’s a move cities and towns across the Atlanta metro area are beginning to replicate.
Some people want to take it a step further and use property tax dollars generated from the luxury apartment buildings to give folks other affordable housing options.
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