Atlanta’s long-touted affordability is decreasing. More than 70 percent of Atlanta households spend at least 45% of incomes on housing and transportation costs. From 2010 through 2020, City of Atlanta rents increased 48% while wages only increased 22%.
The causes of decreased affordability are complex and interrelated, but there are several that stand out for Atlanta: not enough housing, increased numbers of high wage workers, investors are buying up housing stock, urban migration has increased demand, labor shortages increase construction costs, Beltline impacts, lack of political will, and public housing was destroyed and largely replaced with mixed-income developments dominated by market-rate units.
Sometimes targeted solutions don’t work as well as had been hoped. To combat huge property tax increases, the Georgia General Assembly set a cap at 2.6% year-over-year increase. This helped legacy owners, but not renters or new homebuyers. “It actually makes things worst for them,” says GSU’s Urban Studies Institute Professor Dan Immergluck. “You’ve shifted the need for taxes to (renters and new homebuyers).” He said setting caps for homeowners with low to moderate incomes could have helped those that struggle the most without depriving municipalities of needed revenue.
There are many groups in Atlanta working on the problems. HouseATL was a consortium of Atlanta area non-profits, academics, and elected officials that met for a year to study the issue and provide recommendations to the Mayor. Many believe the city should expand inclusionary zoning requirements used along the Beltline city-wide.The city introduced several ideas earlier this year, including a call for the state to allow cities to enact rent controls. “Rent control is helpful but unrealistic politically,” says Immergluck. “Something more realistic is the city giving more resources for emergency assistance to renters, a simple grant program,” that could help tenants with rent and utility payments in emergencies.
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