Welcome to STR Trends by STR Intelligence, where we explore the exciting realm of short-term rentals. Our goal is to provide you with a plethora of valuable information, including regulations, data, and other insights, to assist you in finding your next investment opportunity.

Today, we’ll be setting our eyes on Atlanta, Georgia, where we will investigate the trends of the Atlanta short-term rental market and examine the various factors that determine whether it is a viable investment strategy or too risky. We’ll review Atlanta’s STR regulations and the current state of its real estate market, and we’ll also explore some of the prominent attractions and other insightful data points to give investors a better sense of the market.

Get ready to dive into the data as we explore Atlanta’s STR Trends.

The City

Atlanta, the vibrant capital of Georgia, has witnessed a significant rise in the popularity of short-term rentals in recent years. With its rich cultural heritage, thriving business landscape, and numerous attractions, it comes as no surprise that both tourists and business travelers are seeking unique accommodation options beyond traditional hotels. This growing demand has created a dynamic short-term rental market.

Before we dive into the data, let’s look at what makes Atlanta a tourist destination.

Popular Tourist Attractions

Atlanta is home to a diverse array of attractions and activities that appeal to visitors of all ages and interests. From world-class aquariums and museums to professional sports franchises, lush gardens, and historical sites, there is something for everyone to enjoy in Georgia's capital city. With this broad selection of museums, attractions, parks, and pro sports, Atlanta offers an ideal vacation destination for all visitors. Families, couples, groups of friends, and solo travelers can all find plenty of one-of-a-kind experiences.

• Georgia Aquarium - One of the world's largest aquariums featuring thousands of aquatic animals, including beluga whales, whale sharks, and manta rays. A must-see attraction when visiting Atlanta.

• World of Coca-Cola - An interactive museum that explores the history and popular culture surrounding the iconic Coca-Cola soft drink brand. Features exhibits, a 4D theater, a tasting experience, and more.

• Martin Luther King Jr. National Historical Park - Includes Dr. King's childhood home and Ebenezer Baptist Church, where he preached as a pastor. Offers an in-depth look at Dr. King's life and the Civil Rights Movement.

• High Museum of Art - Atlanta's premier art museum housing an impressive permanent collection and rotating special exhibits. Focuses on 19th and 20th century American and European art. 

• Legoland Discovery Center - An indoor family entertainment center with Lego attractions, rides, shows, and more. Great for kids who love Legos and creative building.

• Atlanta Botanical Garden - Stunning urban botanic garden with beautiful themed outdoor gardens and an indoor conservatory. Seasonal displays include an orchid show and holiday lights.

• Piedmont Park - The city's "Central Park" spans nearly 200 acres in Midtown. It features trails, a lake, festivals, concerts, and outdoor activities.

• Atlanta Falcons - Catch an Atlanta Falcons game at the stunning Mercedes-Benz Stadium—great fun for people of all ages.

• Atlanta Hawks - NBA basketball franchise playing home games at State Farm Arena—a regular playoff contender in recent years.

Airport

Hartsfield–Jackson Atlanta International Airport is the busiest airport in the world, serving over 100 million passengers annually. As the central hub for Delta Air Lines, it offers connections to destinations across the globe.

The airport's origins trace back to 1925 when it opened as Candler Field, named after Coca-Cola founder Asa Candler. It was later renamed Atlanta Municipal Airport and eventually Hartsfield-Jackson Atlanta International Airport, incorporating the names of former Atlanta mayors.

Some key facts illustrate the immense scale of the airport: nearly 2,700 flights arrive and depart daily, over 700,000 takeoffs and landings happen yearly, and the airport employs 60,000 people.

Passengers have abundant dining, retail, and amenity options, including restaurants, shops, nursing suites, pet relief areas, a medical clinic, and even a mini-golf course. Complimentary WiFi is available terminal-wide.

Weather

Atlanta enjoys a humid subtropical climate, with hot, humid summers and mild, pleasant winters. Summertime highs frequently reach the 90s Fahrenheit (over 30°C), while winters dip into the 40s Fahrenheit (single digits Celsius).

Spring and fall offer warm conditions perfect for enjoying Atlanta's outdoor spaces. April highs in the 70s F (low 20s C) and October highs near 80°F (27°C) are ideal for exploring the city.

Rain can occur year-round, though late spring and summer tend to be wetter. Severe storms are most common in the spring. Snow is rare but can occasionally dust the city in the winter.

Travel Season

Tourism peaks in Atlanta during the spring and summer when school is out, and the weather is warm. Popular times to visit are March through May (which has the highest average daily rate) and September through November, when temps are comfortable without the heat and humidity of summer.

Winter tourism rises around the December holidays, while tourism falls in January (which has the lowest average daily rate).

Market Data

Now that we’ve examined what makes Atlanta so favorable to visit let’s dive into the data.

It is important to note that this data is as accurate as Q2 of 2023. While we do our best to accumulate the most up-to-date information, please do your research before making any investment decision.  

In the following sections, we will take a deep dive into the wealth of Atlanta STR data, real estate data, analyzing occupancy rates, average daily rate for the market, guest demographics, and the impact of regulations. We will also explore essential listing data and descriptions and ways to use this to your advantage.

Real Estate

Like many cities during the pandemic, Atlanta saw a surge in travel and new residents flocking to the city. In fact, Metro Atlanta welcomed more than 64,940 new residents in 2022, pushing the region's 11-county population to 5.1 million, according to 2021-2022 population estimates.

Alongside other factors, such as limited supply and demand for these new residents calling Atlanta their home, there has been an increase in rent prices. The average monthly rent for a one-bedroom apartment has risen by a whopping 31% in the past five years, from $1,308 to about $1,750, according to Zumper.

Balanced Market

Regarding purchasing a home, Atlanta's median housing prices have reached around $430,00, according to Realtor.com. However, housing prices are trending down -3.5% year-over-year. This is a good sign for buyers and sellers as the median housing price hasn’t drastically decreased or increased; it has held steady. On top of that, there are over 4,700 homes for sale, making a balanced market.

Other Numbers to Factor

• Number of Listings for Sale: 4,718

• Median Property Price: $430,000

• Median Price per Square Foot: $269

• Median Sold Home Price: 438.7K

• Days on Market: 42

• Number of Long-Term Rental Listings: 7,354

• Number of Short-Term Rental Listings: 5,988

• Short-Term Rental ROI: 2%

• Short-Term Rental Revenue: $15,567

• Average Daily Rate: $174

• Occupancy Rate: 48%

• Walk Score: 48

• LGBTQ+ Friendly: Yes

• Minority friendly: Yes

• Nightlife: Tons of options

• Tap Water Safe: 👌Yes! Generally Safe to Drink

• Lack of Crime: Good

These are the current numbers as of the end of Q2 2023.

Regulations

Atlanta first introduced short-term rental legislation back in March 2021. The goal was to establish accountability for owners and protect communities where short-term rentals were located.

A year later, in March 2022, Atlanta’s STR regulations went into effect, and it mandated the following:

• You must be a resident of the city of Atlanta.

• Short-term rental ownership is capped at two properties per resident.

• One of the properties has to be the owner’s primary residence.

• Hosts must pay $150 annually for a license, plus an 8% tax rental fee for each property. 

According to Airbnb, before the regulations, there were over 10,000 available short-term rental listings, with hosts earning nearly $139 million in 2021. 

It is without saying that the regulation changes have drastically reduced the number of active listings (around 5900 as of Q2 2023), with hosts opting to either close their doors or to move outside of Atlanta’s jurisdiction, where regulations are currently less stringent.

Regulation Requirements

Now that you know the regulations and how they’ve impacted hosts, what is required to get approved for a permit?

1. You will need to present documentation of proof for the property, like the deed, and additional documents such as a government I.D. and a short-term rental Homeowner’s Affidavit form.

2. If applying for a short-term rental license on the primary owner's behalf, a short-term rental agent affidavit and short-term rental agent affidavit authorization will also be required. All affidavits, both homeowner or agent, must be notarized.

3. You must also notify the adjacent properties that you will be operating a short-term rental. You only have to inform the properties to your direct left and right. The city has a notification letter you can print out and sign here.

4. It can take up to 10 business days to obtain the license. You can check out videos on obtaining a license and obtaining affidavit documents on the city’s YouTube channel.

5. You can apply on the city’s Department of City Planning website. You can also use the website to submit complaints and find out how many permitted rentals are in each district.

The city has created a unique guidebook to help potential and current renters through the process.

Failure to adhere to the regulations includes hefty fines.

Regulation Enforcement

Although the law went into effect in March 2022, as of July 23rd, 2023, Atlanta has yet to enforce the law. According to the city of Atlanta’s local government website, it reads the following:

In short, while there are regulations, the city has not yet started to enforce them. This is not a recommendation or suggestion to not adhere to the city of Atlanta’s regulations.

Anticipated Changes in Regulations and Their Effects on the Market

Regulations governing the Atlanta STR market are likely to evolve in response to its growth and the concerns of local communities. As the market matures, policymakers may introduce new regulations or modify existing ones to address zoning, licensing, and taxation issues. Striking a balance between the needs of STR operators and the interests of local communities will be a crucial focus.

Changes in regulations can have both positive and negative impacts on the market. While regulations can ensure responsible growth and protect the integrity of neighborhoods, they may also impose additional compliance requirements and operational costs on property owners and investors. It will be crucial for stakeholders to stay informed about regulatory changes and adapt their strategies accordingly, which you can do using STR Intelligence.

The Future

Resident Growth

According to recent census data and reports by economic and demographic data firm Woods & Poole Economics, Inc. and the Atlanta Regional Commission (ARC), Atlanta is expected to grow to over 9 million residents by the year 2060. To better illustrate this point, it would be like if Denver, Colorado (the 19th largest city in the U.S.) moved all its residents to Atlanta over the next 30 years.

Events

Atlanta is ripe for continual growth in the near future and over the next 30 years. Looking closer, the city will be home to events like the 2025 College Football Playoff National Championship game and the 2026 World Cup, the world’s largest sporting event. When Atlanta hosted Super Bowl LIII (53) in 2019, it was reported that short-term rental owners stood to make over $3 million collectively.

Development

On top of significant sporting events, the city is also investing $6.5 billion over the next five years into the development of south downtown. This includes housing, commercial space, hotels, public transit updates, and more! In fact, Atlanta was ranked the fifth-most active U.S. real estate development market over the past decade across all sectors.

This is a vital sign that Atlanta is focused on expanding what it offers to residents and tourists alike.

Tourism

With an average of over 57 million visitors yearly and massive city development, Atlanta is ripe for tourism growth. Whether it’s the solo traveler, the couple on a romantic trip, the family coming to their child’s college graduation, or the international group of friends touring the city on holiday, the city has something to offer them all.

While the current STR regulations limit the number of properties, I believe the Atlanta STR market is expected to bounce back and continue its upward trajectory in the coming years. The city's growing popularity as a tourist destination and its thriving business landscape will contribute to increased demand for short-term rental accommodations. Factors such as the city's rich cultural heritage, major events and festivals, and diverse neighborhoods will continue to attract visitors seeking unique experiences.

With the rise of the sharing economy and the increasing preference for alternative accommodations, the Atlanta STR market is likely to witness sustained growth. As platforms such as Airbnb and VRBO continue to improve the user experience with their technology and ensure that hosts are providing quality stays and providing fair and reasonable pricing, travelers will gain more confidence in booking STR properties; the market will expand, providing more opportunities for property owners and investors to capitalize on this demand.

Technology

Technological advancements will play a significant role in shaping the future of Atlanta’s STR market. As data collection methods improve and become more sophisticated and simpler to use and understand, stakeholders will have access to more accurate and real-time data. Advanced analytics tools and machine learning algorithms will enable deeper insights and predictive analytics, empowering stakeholders to make data-driven decisions with greater precision.

The integration of smart home technology in STR properties will also impact data analysis. IoT devices and automation systems can provide real-time data on occupancy, energy usage, and guest preferences. This data can help streamline operations, optimize resource allocation, and enhance the guest experience.

Evolving Guest Preferences and Demands

The traveler profile is constantly evolving, and investors and hosts must meet these demands.

1. Enhanced Personalization: Guests will increasingly seek personalized experiences tailored to their individual needs and interests. Property owners and investors must leverage the power of data to identify guest preferences and offer customized amenities, recommendations, and services.

2. Sustainability and Eco-Friendliness: As environmental consciousness grows, guests will prioritize STR properties that embrace sustainable practices. Implementing eco-friendly initiatives like energy-efficient appliances and waste reduction measures can attract environmentally conscious travelers.

3. Seamless Technology Integration: Guests will expect seamless technology integration in STR properties, including keyless entry systems, smart home features, and high-speed internet. Embracing technology trends and providing a seamless digital experience will be crucial for guest satisfaction.

Conclusion

In this comprehensive STR Trends guide, we have explored the fascinating world of Atlanta STR data and its significance in understanding the dynamic short-term rental market. We delved into the real estate market, local attractions, peak tourism season, STR regulations, and our take on the future of the Atlanta market. By harnessing this data, stakeholders gain valuable insights into making savvy investment decisions.

Looking towards the future, we anticipate continued growth in the Atlanta STR market, fueled by the city's attractions and the rising popularity of alternative accommodations. Technological advancements will shape data analysis, providing stakeholders with more accurate and real-time insights. Regulation changes will impact the market, requiring stakeholders to stay informed and adapt their strategies accordingly. Additionally, guest preferences are expected to evolve, with a focus on personalization, sustainability, and seamless technology integration.

As the Atlanta STR market continues to thrive, it is essential for stakeholders to embrace data-driven approaches. By leveraging Atlanta STR data, they can make informed decisions, optimize their strategies, and contribute to the sustainable growth of the STR industry in this vibrant city.

Now armed with a deeper understanding of Atlanta’s STR Trends, it is time to unlock the potential of your next investment.

Dive into the vast sea of Atlanta STR data with STR Intelligence, and let it guide you toward success in Atlanta's flourishing short-term rental market.