VESTA CAMP CREEK
INVESTOR UPDATE
UPDATE
MARKET TRENDS
COMPS
FINANCIALS
NOW WHAT?
NOTE FROM THE MANAGEMENT
video of management
Market Trends
South-Atlanta Metro
ECONOMIC VARIABLES
MARKET CONDITIONS
MARKET SHIFTS
LOOKING AHEAD
ECONOMIC VARIABLES
"The South Atlanta multifamily market has faced several hurdles in recent years, both micro and macro-economic in nature."
Between 2020 and 2024, a surge in new construction flooded the market, with over 18,000 units added during this period.
This oversupply outpaced demand, driving vacancy rates to a high of 11.7% by early 2024. The imbalance has forced property owners to compete aggressively on price, reducing rental income and challenging the financial performance of multifamily investments.
Additionally, the influx of units created absorption challenges, slowing leasing activity and delaying stabilization for new and existing properties.
ECONOMIC VARIABLES
MARKET CONDITIONS
MARKET SHIFTS
LOOKING AHEAD
MARKET CONDITIONS 2020-2024
Stagnation in Market Rents
​​Despite a surge in South Atlanta's market rents in 2021, they peaked at around $1,650/month. Since then they've experienced a minor decline, and currently sit at approx. $1,613/month. This drop was driven by oversupply, inflation, and reduced tenant affordability.
Market Occupancy Trends
Market Occupancy, which has been stably hovering around the 94% and 95% mark in the years leading up to 2023, took a dive and currently stand at around 91%. Slowed leasing activity during the 2023 and 2024 years were the primary culprit.
ECONOMIC VARIABLES
MARKET CONDITIONS
MARKET SHIFTS
LOOKING AHEAD
MARKET SHIFTS 2025
SUPPLY-DEMAND RE-BALANCE
A mix of reduction in the supply of new units and a projected 8% increase in population over the coming 5 years, means the vacancy rate is expected to come down to 5% by the end of 2025.
INVESTOR CONFIDENCE IS UP
Investor confidence in South Atlanta is reflected in significant transactions, such as Equity Residential's $964M acquisition in 2024 and SHR Residential's purchase of South Hampton Estates in 2022.
MAJOR DEVELOPMENT PROJECTS
Between the Aerotropolis project and the redevelopment of Fort McPherson, South Atlanta will add a large number of jobs, increasing the number of skilled workers seeking housing, and improving the local economy in the process.
MULTI-FAMILY SALES VOLUME
Atlanta ranks 2nd in the U.S. for multifamily sales volume, with market prices per unit rising 25% over five years to $205,000. Despite high interest rates, 85% of recent buyers are out-of-state investors, reflecting strong market demand.
ECONOMIC VARIABLES
MARKET CONDITIONS
MARKET SHIFTS
LOOKING AHEAD
LOOKING AHEAD
After years of oversupply, new construction is slowing, allowing the market to absorb existing inventory and reduce vacancy rates, which reached 11.7% in early 2024. This stabilization, combined with Atlanta's projected population growth—expected to surpass 6.4 million by 2025—suggests increasing demand for rental housing.
Key economic drivers, such as job creation from developments like the Gillem Logistics Center and expansion near Hartsfield-Jackson Atlanta Int. Airport, will further bolster the market, attracting new residents and boosting leasing activity.
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Additionally, market rents are projected to rebound as economic conditions improve and demand outpaces supply. Investors remain confident as workforce housing, a key segment in South Atlanta, is expected to boom, creating long-term opportunities for growth.
Comps
COMPS
Financial Projections
FINANCIAL PROJECTIONS
Now What?
THANK YOU
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