Explore the pros and cons of renting versus buying a home in Atlanta. Make an informed choice for your future!
Year after year, Atlanta, GA, ranks among the most desirable cities in America. In 2023, it even nabbed the top spot by Money.com’s estimation. But is it better to rent or buy in Atlanta? Read on as we explore the benefits of each –– and which path might be best for you.
Atlanta’s real estate market has cooled off in the last few years, but living in the ATL is still a costly endeavor compared to other parts of the country. In 2024, the average home cost sits at roughly $420,000 compared to the national average of $412,000. This is a double-digit increase over the same time last year, indicating housing prices could be on the rise.
Renting, on the other hand, can be less costly, but potentially more difficult given Atlanta’s lack of inventory. Rentals in the city are going quickly, turning the hunt for housing into a full-time job.
The current Atlanta housing market offers trade-offs between renting and buying. To understand which is the better choice, let’s examine the benefits of each, starting with renting.
Make no mistake: even at lower-than-usual rates, rent in Atlanta is still higher than most places across the country. But in the short term, renting will still be the more economical option for many, chiefly due to the start-up costs that come with homeownership but are absent when renting. Things like down payments, closing costs, appraisals and inspections can equate to tens of thousands of dollars, whereas first and last months’ rent amounts to a fraction of this cost. Renting will allow you to avoid other costs such as paying property tax, mortgage interest, or other expenses associated with home buying.
With no need for a large downpayment, savvy renters can save or invest this money, potentially earning a better return than their increasing property value would net them. But the biggest costs of homeownership are the ones you generally can’t predict. Costly repairs and increasing property taxes, thorns in the side of any homeowner, are off your list of responsibilities should you choose to rent in Atlanta. Conduct thorough research to find the ideal monthly payment and rental rates landlords charge in the Atlanta area.
One of the clearest benefits of renting is one that many people forget about: the flexibility it provides. As we’ll later discuss, buying a home offers stability, but this comes at the cost of agility. When you rent, you can come and go as you please, changing your scenery month after month or year to year. This flexibility is perfect if you travel for work or tend to relocate frequently, or if you’re looking to experience Atlanta’s many neighborhoods before you settle on the perfect place for you. Renting could be the better option for you if you prioritize flexibility.
Searching for an apartment is no walk in the park –– especially in Atlanta –– but it’s far more convenient than buying a home. When you rent an apartment, it’s not uncommon to have your (minimal) paperwork processed in days and receive your keys within a week. The process of purchasing a home, on the other hand, can take as long as six months from search to signing. If you’re in no hurry and have your heart set on buying, you might have the time to wait. But if you need a place to live, time is of the essence. And renting offers a level of convenience that homeownership simply cannot match.
If you’re an existing homeowner looking to make a move, Truehold’s sell and stay transaction can help you take advantage of renting’s convenience while you search for the perfect next place. You get your home equity to go toward your new home, all while continuing to live in your current space as a renter –– meaning you can shop on your own timeline rather than rushing the homebuying journey. Learn more about an Atlanta sell and stay transaction by connecting with a Truehold representative.
Renting in Atlanta has its perks, but buying a home also has advantages that can make it a worthwhile investment.
The benefits of owning a home grow and unfold over time with every modification you undertake, every memory you make, and every dollar of equity you accrue. This is especially true when building a home in Atlanta. Each mortgage payment you make contributes to your total ownership stake in the property, transforming it from a bank-owned liability into the foundation of your asset portfolio over time. Whereas renting can feel like throwing money into the wind month after month, mortgage payments are building toward the accumulation of true wealth.
Renting creates room for flexibility –– with shorter, set lease terms and no cash investment –– while homeownership introduces stability (in more ways than one.) Firstly, a fixed-rate mortgage means your monthly payments remain consistent, allowing you to budget and plan more effectively. Owning a home also means you have more control over your living space, allowing you to customize it to your needs and make it more suitable for long-term living.
Many financial experts argue that investing in real estate is safer than investing in the stock market, while the two yield similar year-over-year returns. And given Atlanta’s continued ascent (in both popularity and price), purchasing a home in the area can be a particularly wise financial move. If you were to sell the house in Atlanta later, you could see a significant profit.
For example, if you purchased a home in the especially hot Decatur market in December of 2021, that property would have cost roughly $300,000. Today, the same property nears $500,000, on average. This is just one of Atlanta’s many neighborhoods –– and timing is a key contributor –– but it’s unlikely a stock or other investment would see a 66 percent increase in just four years.
So, is it better to rent or buy in Atlanta? While each has advantages and limitations, the following factors can help you decide for yourself.
Whether you choose to rent or buy, Atlanta is a great place to be –– but given the city’s popularity, the journeys toward finding a rental or becoming a homeowner can be equally challenging. Fortunately, with Truehold on your side, the process can be made smoother no matter which path you choose.
If you’re a current homeowner, Truehold’s sell and stay transaction allows you to sell your home in exchange for your hard-earned home equity, and then continue living in the home as a renter. In your familiar, secure space, you can search for your next property at your leisure –– or continue enjoying all that life as a renter has to offer.
Learn more about how Truehold can help you access your home equity and live easier in Atlanta by connecting with one of our trusted representatives today.
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