Rent up 20% in Atlanta this year

[Vincent Crane]

At my apartment complex they're raising the rent on a B class apartment by 20%, and my friends are seeing 10-15% increases at theirs as well. I'd like to hear some thoughts from you all on how crazy the market is right now.

[Matt Sicignano]

Like any hot market, I think Atlanta is prone to a bubble. Check out Curbed's article on the massive amount of apartment construction slated and underway in Atlanta. Like the builders of single family homes who got off the train after it hit the wall; the apartment bandwagon is going full steam.  Land prices are high now and they are all building Class A properties. When it becomes saturated those left standing when the music stops will be left with no other choice than to discount for cash flow. That's what going to be our competition.  I think there is a parallel with the  the Miami market-1200 units delivered last year, from a peak of 10,000 in '08, but 7300 under construction now (!) Classic case of building for what you to happen, instead of what will happen. In fairness, it's not all greed that does it-these projects sometimes take years from concept to execution, and it's tough to pull the plug when you reach a certain point. And rents are skewed by area-Atlanta is hot, (but look at the massive amount of construction going on to bring pressure on that) but I still have a  4/BR house in Dallas, GA , bought new in '09, that is still 20K underwater, and having a hard time renting it at $1200.