Atlanta Metro

Apartment occupancy in the Atlanta Metro remains above 90 percent; and, as of the close of 2006, occupancy stood at 90.9 percent. However, over the last year, occupancy in this metro has inched downward 1.4 percentage points from an occupancy of 92.2 percent at year-end 2005.Two factors have contributed to this decline in occupancy. One was the introduction of new units to the marketplace. The other was theout-migration of approximately 4,200 apartment units in the Atlanta area during all of 2006. This means that after all of the tenant move-ins, move-outs, and renewals, the Metro had approximately 4,200 fewer units occupied at the end of 2006 than at the close of the previous year.Although the Metro’s apartment occupancy level has declined over the last year, it still remains higher than the 90.1 percent reported for the First Quarter of 2005, when ALN began monitoring apartment conditions for the area.

The average quoted rental rate for apartments in the Atlanta area gained ground with a 2.7 percent increase over the last year. At the close of2006, Atlanta’s average quoted rental rate was 77 cents per square foot per month compared to 75 cents one year earlier.Despite the decline in Atlanta’s apartment occupancy, the average rental rate has continued to improve and benefit from the higher rent rates commanded by new units. In addition, the average rent has increased as the cost of living and the cost of doing business has been increasing over the last few years.