Atlanta: Top 10 Housing Market Trends In ATL Metro Area In 2025

🚨 BIG CHANGES in Georgia’s Housing Market! 🚨 If you’re a moving to... or are planning on becoming a homebuyer, investor, or real estate pro! YOU NEED TO KNOW THIS!

These are the Key Trends shaping Atlanta’s housing market in 2025.

🏡 1. Housing Deficit Remains High

Atlanta faces a 35,300-unit housing deficit 📉, keeping home prices elevated.

📉 2. Mortgage Rates Expected to Stay Above 6%

While some relief is expected, affordability is still a challenge. Most believe the rates will stay in the 6’s; however, some others also believe there is a chance of breaking into the 5’s by the end of the year.

🔼 3. Home Prices Continue to Climb

Atlanta home prices are up 6% Year-Over-Year (YoY)and have increased 33% since 2021! If you are in the very attractive northern suburbs, it is even higher. The Atlanta metro area is one of the hottest markets in the country.

🛑 4. Low Inventory = Tough Market for Buyers

New homes are selling fast, and resale inventory remains critically low. In January of 2025, home sales were up 5.3% YoY and in December of 2024, they were up 14.5% YoY.

🚀 5. First-Time Buyers Are Driving Demand

Homes priced $200K–$300K saw a 35% increase in sales, fueling new construction. Many are “driving to you qualify” meaning that buyers are going further away from the metro area to find and qualify for affordable housing.

🛠 6. New Home Construction on the Rise

Builders are ramping up production, but labor, land, and material costs remain a challenge. In 2019, the average home size was 2,275 square feet (sq ft) and cost the consumer $381k. Today, to target the price of $350k, builders need to build a 1,566 square foot home yet it is still more than $55 per sq ft more expensive than in 2019.

📊 7. Affordability is at Risk

Atlanta’s home price-to-income ratio is nearing historical highs, making it harder for middle-class buyers. The last 5-years real estate has increased by record levels.

📉 8. Impact of Interest Rate Policy

Lower rates = higher demand, which means tighter inventory and rising prices. If the rates get down into the 5’s, then we could possibly be revisiting the 2020 real estate market, which saw competition to buy (and prices) go through the roof!!

📈 9. Urban vs. Suburban Shift

Affordability concerns push buyers further from the city, increasing demand in outer metro areas. Urban sprawl is a real thing as is the traffic congestion that comes with it.

📍 10. The Future? It’s Competitive!

With housing supply struggling to keep pace, expect strong competition for homes in 2025. 🔥 The Atlanta real estate market is HOT, but navigating it requires strategy. Stay ahead of the curve by keeping up with these trends as 2025 looks to be a year of high competition, rising prices, and shifting buyer behavior. If you’re considering buying (or even selling), staying informed is essential!