Atlanta MSA Ranked Third in Top 10 Markets for Building Home Equity

July 31, 2008

According to a new study “Ownership, Rental Costs and the Prospects of Building Home Equity” released by the Center for Economic and Policy Research and the National Low Income Housing Coalition, the Atlanta metro area is one of the most affordable places to own a home and build future equity.

The speculated equity accumulated after four years of ownership by the year 2012 in the low cost scenario is $46,314, middle cost $44,730 and high cost $43,360. These calculations are based on evaluating equity after deducting six percent of the projected sales price for realtor fees and other costs that correlate with selling a home.

Atlanta has the third lowest average monthly cost of ownership among the top 10 markets. The survey showed monthly ownership costs in the Atlanta MSA that are comparable to monthly rental costs.   Fair Market Rent (FMR) for a two-bedroom is $824, while a three-bedroom is $1,003, comparable to monthly ownership costs which could be as low as $991, as high as $1,332 and averaging out at $1,131. The low, middle and high cost scenarios for monthly ownership costs reflect a six, seven and eight percent 30-year fixed rate mortgage.

“News like this only re-affirms the point we have been talking about for months that Atlanta is a terrific place to buy a home,” said David Ellis, executive vice president of the Greater Atlanta Home Builders Association. “And if you have the means to do so, there is no reason to wait, particularly when you look at the potential of the investment you are making.”

Lastly, the study revealed that there are 2,056,264 housing units in the region with a 3.6 percent homeowner vacancy rate and 12.1 percent rental vacancy rate.

About Greater Atlanta Home Builders Association:
The Greater Atlanta Home Builders Association (HBA) is a 3,800-member, not-for-profit trade association affiliated with the Home Builders Association of Georgia and the National Association of Home Builders. The HBA is the second largest local homebuilders association in the nation and is dedicated to promoting, protecting and preserving home ownership by maintaining the housing industry as a viable economic force in the Atlanta area. The official charity of the HBA is HomeAid Atlanta, a non-profit organization that builds and renovates transitional housing for metro Atlanta homeless children, women and men. Visit www.atlantahomebuilders.com for more information.