When vetting a potential real estate asset to invest in, there are many factors to consider. Investors need to have a clear understanding of the market dynamics both currently and for the future to make the best investment decision for their portfolio. Our team at Viking Capital has many considerations when selecting our potential investments, but some of the most important include; strong economic drivers such as job diversification and resilience, low crime rates and safety, rent growth potential, and population growth.
Our newest investment opportunity is located in Dawsonville, Georgia. This city is known for its natural beauty and expanding population. In this article, we discuss the top ten reasons why we chose to invest in Dawsonville.
#1 Location
Dawsonville is situated in the dynamic GA-400 Northern Corridor of Atlanta, just an hour north of downtown. Positioned at the intersection of State Routes 3, 5, and 136, this thriving city enjoys strategic access to the region. Experiencing rapid expansion, Dawsonville is ideally located in the “path of progress” from Atlanta to Alpharetta. Dawson County, among the northernmost counties in the Atlanta region, has gained recognition as one of Georgia’s two fastest-growing counties and ranks fifth among the 3,000 fastest-growing counties in the nation.
#2 Population Growth and Economic Drivers
Dawsonville has undergone substantial growth in recent decades, with a notable surge in population. Between 2000 and 2010, the community witnessed a remarkable 309.7% increase, followed by a further 46.7% rise by 2020. A significant contributor to this growth is the influx of employment opportunities generated by Fortune 500 companies such as Google, Microsoft, and JP Morgan. Additionally, Dawsonville boasts affordability, with a cost of living that is 4% lower than the national average.
#3 Rent Growth
Dawsonville mirrors Atlanta’s robust rental market, drawing a significant portion of its population choosing to rent. This demand creates favorable rental yields for property investors, particularly in areas characterized by high demand and low vacancy rates. For instance, Viking Capital’s latest asset, Dawson Forest, situated in Dawsonville, boasts an impressive 96% occupancy rate. It strategically holds the distinction of being the sole Class B asset in the city, presenting an affordable and desirable option for renters with substantial value-add potential for Viking Capital investors.
Georgia ranks 6th in the U.S. for rent growth, highlighting the state’s thriving rental market. According to Zumper’s data as of February 2024, the median rent for all bedroom counts and property types in Dawsonville, GA, stands at $2,112, marking an 8% increase compared to the national average. This statistic underscores the strength of Dawsonville’s rental market.
#4 Favorable Job Market
As the US economy steadily recovers from the impact of the coronavirus, the job market is rebounding better than initially anticipated. In Dawsonville, the unemployment rate is a mere 2.3% as we enter 2024. A substantial 82% of the job workforce is engaged in white-collar occupations, with the retail sector emerging as the predominant field.
Looking ahead, Dawsonville’s future job growth over the next decade is forecasted to reach an impressive 47.4%, surpassing the national average of 33.5%. This promising outlook indicates a dynamic and expanding job market for the community.
#5 Safety
Dawsonville, GA, stands out as a very safe community. With a total crime rate of 834 crimes per 100,000 residents, it is 63% safer than the rest of the United States. The violent crime rate is notably 58% lower than the national average, and the property crime rate is 64% lower. For investors considering Dawsonville, concerns about tenant safety, property integrity, and overall safety are alleviated by these favorable crime statistics.
#6 Strong Rental Market
In Dawsonville, renters occupy 31% of the housing, and only five multifamily apartment buildings in the vicinity accommodate this demographic. This provides property owners with a distinct advantage. This scarcity of multifamily residences leads to increased demand, resulting in advantageous rental prices for property owners. Dawsonville boasts an average rental rate of $1830, comparable to that of the city of Atlanta, outpacing all other major Atlanta submarkets.
#7 Domestic Trade Growth
Georgia is actively enhancing its domestic trade, leveraging its highway infrastructure. In 2020, the total outbound trade from Georgia reached $625 billion. Projections indicate a substantial 109% increase to $1.3 trillion by the year 2050. Positioned in Atlanta’s GA-400 Northern Corridor, Dawsonville enjoys access to 80% of the United States within a 2-day travel radius. The city is home to several prominent manufacturers within a 25-mile radius, contributing significantly to job creation and population growth.
#8 Proximity to Atlanta
The city of Atlanta has so much to offer both renters and investors holding the impressive distinction of being ranked as the second “most desired” city among renters in November 2023 among the 150 largest U.S. cities by population. This favorable ranking bodes well for the entire Atlanta Metro region. Conveniently located just an hour away via GA-400 to the north, Dawsonville offers residents the opportunity to embrace a small-town lifestyle while enjoying the many benefits of a bustling metropolis. From the world’s busiest airport, Hartsfield-Jackson Atlanta International, to the Braves Stadium and some of the country’s top-rated restaurants, the city of Atlanta provides a wealth of attractions for those in proximity, including Dawsonville.
#9 Demographics
Dawsonville, Georgia, stands as a youthful and affluent community, attracting numerous growing families. A significant 73% of households are led by married couples, with approximately 43% of these households containing children under the age of 18.
The community maintains a median age of 33, and nearly 40% of its population holds a college education. With a median household income of $75,234, which surpasses the rest of Georgia by 20%, Dawsonville showcases a demographic profile indicative of a community with strong moral values. Positioned at an age conducive to ongoing professional and income growth, these characteristics contribute to the overall economic stability of the area.
#10 Tourism
Dawsonville proudly claims Bill Elliott, also known as “Awesome Bill from Dawsonville,” among its residents—a NASCAR legend with an impressive track record. With 44 victories on the NASCAR circuit, including two Daytona 500 wins and the 1988 NASCAR Winston Cup championship, Elliott has left an indelible mark on the racing world. In 2002, Dawsonville became home to the Georgia Racing Hall of Fame, a non-profit organization dedicated to preserving the rich history of motorsports, attracting thousands of visitors annually.
Beyond its racing heritage, Dawsonville is a magnet for nature enthusiasts. One of Georgia’s seven wonders, Amicalola Falls, draws visitors seeking the state’s natural beauty. Notably, the Appalachian Trail concludes at Amicalola Falls State Park, establishing Dawson County as a prominent destination for hikers. Additionally, the flooding of the Chattahoochee River plain led to the creation of Lake Lanier, Georgia’s largest lake spanning 39,000 acres, marking the southern end of Dawson County drawing even more attention to the area.
Key Takeaway:
For investors exploring new locations for potential investments, certain fundamental factors should be carefully considered. These include robust rental demand driven by population growth or scarcity of available properties in the market, positive rent growth, a strategic location positioned in a thriving or progressing market, and a resilient economic landscape characterized by substantial job growth. Ensuring that tenant wages align with or surpass rental prices is crucial for maintaining high occupancy rates. By focusing on these key fundamentals, it becomes simpler to identify a promising location for your next investment.
Check out our newest investment opportunity Dawson Forest. Click here for more details: Open Deal
