Rental prices in Atlanta have decreased slightly the past six months ago, according to a new study from QuoteWizard by LendingTree.
The average rental price for a one-bedroom apartment in the city now stands at $1,379, according to an estimate from Apartment List. This estimate is down one percentage point from this past June, but still looms 25 percentage points higher than the city’s average rental price recorded in 2020. The current average still stands two percentage points above Atlanta’s average rental price from this January.
Rental prices across the state have also decreased by one percentage point since June, now hovering at $1,240, according to Apartment List.
The drop in rent is a welcome sign for many renters, according to the QuoteWizard by LendingTree article. It states renters have been spending more and more of their total income on housing costs.
Georgia also ranks moderately in regard to rent-to-income ratio, with residents spending an average of 48% of their monthly earnings on rent, according to data sourced from the U.S. Census Bureau.
Both the U.S. Department of Housing and Urban Development and the Federal Reserve state that any household dedicating more than 30% of their monthly income to housing costs is considered “rent burdened”. Those spending more than 50% of their income on housing are considered “severely rent burdened”.
The study claims that nearly half of Americans (47%) have reached rent-burdened status.
Georgia is excluded, however, from the study’s ranking of states with the most homes occupied by renters. New York, California and Nevada top this list, with more than 40% of the total housing units in these states currently rented, as opposed to owned. Hawaii, Rhode Island and Texas round out this ranking, with 41.1%, 39.2% and 38% of the homes in these states currently occupied by renters, respectively.
Georgia’s exclusion insinuates that a majority of the state’s residents opt to own a home over renting, even across the metro Atlanta area.
The study refrained from predicting rental price behavior in 2023.