As investors continue to search for portfolio opportunities, Atlanta emerges as one of the most desirable areas to invest in 2024. One suburb, in particular, stands out—Decatur. Known for its vibrant community and economic potential, Decatur offers numerous advantages for investors. In this article, we explore the top reasons why Viking has decided to invest in Decatur.
#1 Easy Access and Great Location
Decatur is a thriving suburb located just six miles east of downtown Atlanta, approximately a 20-minute drive away. This prime location offers residents unparalleled access to the numerous attractions and amenities of a major metropolitan area, including professional sports teams, diverse job opportunities, and a vibrant nightlife.
Accessibility and Connectivity
One of Decatur’s key advantages is its exceptional connectivity to downtown Atlanta. The suburb is served by three MARTA (Metropolitan Atlanta Rapid Transit Authority) stations within its city limits, providing residents with convenient and efficient public transportation options. This connectivity makes it easy for residents to commute to work, attend sporting events, or enjoy a night out in the city without the hassle of driving and parking.
Proximity to Hartsfield-Jackson International Airport
Decatur’s access to Hartsfield-Jackson Atlanta International Airport, one of the busiest airports in the world, is a significant benefit for its residents. The MARTA line connects Decatur directly to the airport, simplifying travel for business and leisure. This ease of access to national and international flights is a considerable draw for professionals and frequent travelers, enhancing Decatur’s appeal as a residential choice.
#2 Strong Economic Growth & Stability
Decatur benefits from Atlanta’s robust economic growth. As a suburb of one of the fastest-growing cities in the U.S., Decatur enjoys a spillover of economic activities, job creation, and business expansion. Key sectors driving this growth include:
- “Leisure and Hospitality: A thriving sector with growing establishments and tourist attractions. The city of Decatur is well-known for its critically acclaimed restaurants, including many featured in Atlanta Magazine’s Best of Atlanta experiences and James Beard award winners and nominees (the Oscars of the food world). Some notable establishments include Chai Pani, Kimball House, Deer, and Dove, along with several others.
- Education and Healthcare: There has been significant growth in institutions and healthcare facilities contributing to job creation. Healthcare is the leading employment industry in the Atlanta area, while education comes in at number three.
- Finance: A strong financial sector in Atlanta supports both businesses and residents, as it is the third-largest home to Fortune 500 companies in the U.S.
#3 Thriving Job Market
Investing in Decatur real estate is advantageous due to its employment opportunities. The Atlanta metropolitan area offers jobs in the healthcare, hotel, retail, and business services industries.
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Proximity to Retail and Employment Hubs:
In a 10-mile radius, there are 28.7 million square feet of retail and office space. This proximity to major retail and employment centers makes Decatur an attractive location for residents seeking convenient access to amenities and job opportunities.
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Atlanta’s Global Business, Health & Tech Hub:
Atlanta serves as the headquarters for global brands such as The Coca-Cola Company, CNN, Delta Air Lines, and Home Depot. It is also home to major hospitals and agencies like the CDC. Additionally, key universities and colleges, including Georgia Tech, Georgia State, Emory, and Agnes Scott, provide numerous employment opportunities.
#4 Exceptional Education Opportunities in the Atlanta Metro
Decatur offers exceptional educational opportunities, making it an attractive location for families. Investing in Decatur means benefiting from a community that values education, ensuring a steady influx of residents and sustained growth.
Top-Notch Private Schools
- Saint Thomas More Catholic School: Named a Blue Ribbon School of Excellence in 2016, this school is known for its outstanding academic standards.
- The Paideia School: Located nearby in the Druid Hills neighborhood, this prestigious school offers rigorous academic programs and boasts a strong reputation for student success.
High-Rated Public Schools
Decatur’s public schools consistently receive high ratings, with almost all ranked 7 or higher on www.greatschools.org.
- Decatur High School: Awarded a gold medal by U.S. News & World Report, highlighting its commitment to excellence in education.
Why This Matters for Investors
- Attracts Families: High-quality schools draw families to the area, increasing demand for housing.
- Stable Market: Education-focused communities tend to have more stable real estate markets.
- Long-Term Growth: The presence of top schools supports long-term property value appreciation.
#5 Decatur’s Impressive Population Growth
Decatur has demonstrated remarkable population growth over the past decade, reflecting its appeal and vitality as a community. Over the last ten years, Decatur’s population has expanded at an average annual rate of 2.33%. This rate significantly surpasses both the national average of 0.69% and the state average of 0.97% during the same period. Decatur’s overall population growth rate over the past decade has been 20.94%, while the state’s overall growth rate was 8.75% and the national growth rate was 6.23%.
This higher-than-average growth rate highlights Decatur’s increasing attractiveness as a place to live, work, and invest. The city’s thriving economy, high-quality schools, and vibrant community contribute to its expanding population. For investors, this robust growth signals a dynamic market with potential for continued appreciation and demand.
#6 High Demand for Multifamily Housing
In Decatur, 47% of housing is renter-occupied, reflecting a strong demand for rental properties.
Demographic Insights
- Median Age: The median age in Decatur is 34.2 years, placing a significant portion of the population within the prime rental age range.
- Age Breakdown:
- 20-34 Years Old: 63% of individuals in this age group are renters, highlighting a robust demand for rental housing among younger adults.
- 35-44 Years Old: Nearly 40% of people in this age bracket also rent, indicating a continued need for rental options among middle-aged adults.
These demographics underscore Decatur’s appeal as a rental market, with a substantial proportion of its population in key renting age groups. For investors, this indicates a stable and growing demand for rental properties, making Decatur an attractive location for rental housing investments.
#7 Strong Multifamily Fundamentals
The rapid increase in home prices and elevated interest rates create a significant shift in the housing market. Many prospective homebuyers, particularly millennials—who represent the primary rental demographic—find homeownership increasingly unaffordable. This affordability gap is driving a surge in demand for rental properties, especially luxury apartments.
Market Trends
- Soaring Home Prices: In Decatur, home prices have jumped over 30% since 2020 (Zillow), far exceeding the growth rate of average rents. This disparity highlights the impressive appreciation in the local housing market.
- Increased Rental Demand: With homeownership becoming less attainable, more individuals are turning to rental options. This trend is pushing up demand for rental properties, giving property management companies the leverage to increase rents.
What This Means for Investors
For investors, these conditions present a promising opportunity. The growing rental market, driven by the rising cost of homeownership, offers a stable and potentially lucrative investment environment. As more people choose to rent, multifamily properties are positioned to deliver consistent returns and long-term growth.
#8 Low Unemployment Rate Signals Economic Strength in Decatur
A key indicator of economic health is the unemployment rate, which reflects the robustness of the job market and the overall economic performance of a region. Decatur stands out with an impressive unemployment rate of just 2.9%, highlighting a vibrant and stable job market.
Economic Implications
- Stable Job Market: The low unemployment rate in Decatur signifies a thriving economy with ample job opportunities.
- Housing Demand: As professionals flock to the area for work, the demand for housing naturally rises. This strong job market not only reflects economic stability but also drives increased interest in residential properties.
Decatur’s low unemployment rate is a positive sign of economic strength, contributing to a growing demand for housing and underscoring the area’s attractiveness for both investors and residents.
#9 High Occupancy Rates
Occupancy rates are a crucial indicator of the strength of the multifamily investment market. Decatur excels in this area, with average occupancy rates projected to remain close to 96% from 2016 to 2025.
Key Insights
- Strong Demand: The consistently high occupancy rates signal robust demand for rental housing in Decatur.
- Stable Rental Market: This level of occupancy indicates a stable rental market, providing investors with a dependable environment for returns.
Decatur’s high occupancy rates not only reflect strong housing demand but also make it a promising market for multifamily investments. Investors can expect a stable and rewarding rental landscape, underscoring Decatur’s appeal as a reliable investment opportunity.
Inside Viking’s Decision: Why Decatur is Our Newest Investment Focus
Introducing Viking Capital’s newest acquisition: Avondale Hills in Decatur, Georgia. Avondale is a core-plus apartment complex with 240 units, built in 2023. This newly constructed complex comes with a wide range of amenities and is excellently located. Situated just off I-285 and directly across from the Kensington Marta Station, Avondale Hills offers easy access to major employers in suburban and downtown Atlanta, providing residents with access to Atlanta’s 2.7 million jobs. Furthermore, Avondale Hills is located across the street from the Kensington development, which encompasses 35 acres of retail development surrounding the area.
As a newer asset with below-market rents, it offers our team room for competitive rent increases to increase the net operating income (NOI). Additionally, Viking secured this off-market deal at a $20 million discount, thanks to our strong reputation for execution. This low cost basis ensures greater appreciation upon future sale, providing investors with a strategic advantage.
Evaluating and underwriting numerous deals every month, the strong market fundamentals mentioned above, combined with the excellent cost basis, were the key factors that led Viking to choose Decatur as our newest investment focus.
Final Thoughts
Decatur offers a unique blend of economic growth, stability, and investment potential. Its strong job market, high occupancy rates, and affordable acquisition costs make it an ideal location for multifamily investments. Viking’s decision to invest in Decatur aligns with our strategy to capitalize on high-growth areas with stable returns. As we look ahead to 2024, Decatur stands out as a prime opportunity for investors seeking to maximize their returns in the Atlanta metropolitan area.
Interested in Avondale Hills? For more information on this wonderful investment opportunity click here: Invest Now.
