Real estate investors are playing a role in driving up home prices in Atlanta. In 2024 alone, investors have bought over $1 billion worth of homes.
The metro Atlanta area joined markets in California, Miami, and Phoenix where over $1 billion worth of homes were purchased by investors from January to March, according to a report by Redfin. The report also revealed that investors bought over 20% of all homes in the metro Atlanta area in a span of three months.
Investors typically purchase homes at a low price, add renovations, and sale the homes at two to three times over the original purchase price. As a result, the housing market has shifted making it more difficult for first-time homebuyers to purchase.
The median price of a new construction or existing home in metro Atlanta area was $280,000 in 2020. In 2024, the median listing price for homes in metro Atlanta is now $410,000, according to Realtor.com.
Investors are also taking the wealth from Black homeowners.
A study by Georgia Tech revealed that Atlanta residents lost $1.25 billion in home equity overall, with Black residents losing $681 million. Neighborhoods such as Kingswood, Grant Park, and Adair Park/Pittsburgh suffered the most, losing $35M to $44M over a 10-year span.
“Atlanta lost $1.25B in financial equity between 2011 and 2021 with predominantly African American neighborhoods bearing more than half of the total loss. The most affected neighborhood suffered a loss proportional to nearly 4% of their total household income,” the study states.
The study continues to point out how Wall Street-backed corporations have added to the racial disparities in home ownership. Three companies (Invitation Homes, Pretium Partners and Amherst Holdings) own 19,000 homes in Atlanta. The corporate purchases have had a ripple effect.
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