Atlanta-area housing market forecasts for 2025 suggest that home prices will continue to rise gradually next year, as they’ve been doing for months.
The Atlanta real estate market experienced a brief downturn over the past couple of years, with home prices declining from their 2020 peak. The same thing happened in most cities across the U.S. But the price “correction” in Atlanta was milder in comparison.
Now, as we enter the last two months of 2024, recent housing market forecasts for the Atlanta metro area predict that prices could rise modestly in 2025.
Here are the latest real estate trends and predictions for the Atlanta, Georgia metro area, extending through this year and into 2025.
Atlanta Home Prices Flat Over the Past Year
According to multiple sources, home prices in this metro area have been mostly flat over the past year or so. But a recent housing market forecast suggests that this could change as we move into 2025.
We’ll get to those latest predictions in just a moment. But first, let’s take a look at recent home price trends for this real estate market.
The above graph shows the median home price for the Atlanta metro area, based on data provided by Zillow. And it shows a pattern that occurred in most major U.S. cities over the past few years:
- Home prices rose rapidly and substantially during the pandemic years.
- They hit an all-time high during the summer of 2022.
- Prices declined into 2023 as higher mortgage rates cooled the market.
Most housing markets across the U.S. experienced some version of these events. The difference is that the Atlanta metro area experienced a milder home price decline than a lot of other markets.
Now, as of fall 2024, home values in the Atlanta area are starting to creep upward again. We expect that to continue into 2025 as well.
Atlanta-area homeowners should be thankful. In more volatile housing markets (like Austin, Texas), homeowners who bought a home a couple of years ago have lost a lot of equity since then. In contrast, the Atlanta area experienced only a minor downturn in house values.
The Supply Situation: Better But Still Not Great
Atlanta housing market forecasts are largely influenced by both supply- and demand-related factors. Here’s what’s happening on both sides of that equation:
- On the demand side, affordable home prices and gradual population growth will continue to bring buyers into the real estate market.
- On the supply side, the Atlanta area continues to experience a relative shortage of inventory, which in turn puts upward pressure on local house values.
As of fall 2024, the Atlanta-Sandy Springs metro area had a 3.3-month supply of homes for sale. That was slightly higher than the national median for that same timeframe, but still not enough to satisfy the demand from local home buyers.
The takeaway: The Atlanta housing market might not be as “tight” as some other major metros. But it’s nowhere near a buyer’s market, either. So those buyers who enter the market in 2025 will have to be patient and persistent.
A Positive Price Forecast Into Early 2025
Moving on, we come to the general outlook and forecast for the Atlanta real estate market stretching into early 2025.
With a growing population, limited inventory, and steady demand from buyers, the Atlanta-area housing market is projected to see additional price growth through this year and into next.
Zillow recently offered some price-related predictions for the Atlanta real estate scene. Specifically, the company predicted that the median home value for this metro area would rise by 1.5% from September 2024 to September 2025.
This forecast suggests that current supply-and-demand factors within the Atlanta-area housing market are putting steady upward pressure on prices.
This market tends to experience steady home-price growth over time, aside from anomalies like the Great Recession and housing market crash of 2008. If history is any indication, house values in Atlanta and surrounding cities will rise gradually during 2025.
Top 5 Questions From Atlanta Home Buyers
(Based on the many questions we’ve received over the years.)
1. Is Atlanta a good market for home buyers?
All real estate markets have their ups and downs, and the Atlanta area is no different. Historically speaking, however, Georgia’s capital city is mostly up with only occasional downs.
Atlanta is generally considered a stable housing market for home buyers. It has a long history of steady price appreciation with a median home value only slightly higher than the national median.
The Atlanta metro area offers affordable housing options for buyers and investors alike, with a strong economy anchored by major industries like healthcare, technology, and logistics.
2. Will Atlanta home prices rise or fall in 2025?
Home prices are notoriously hard to predict due to the many variables involved. However, based on the current supply-and-demand situation across the Atlanta-area housing market, moderate price growth in 2025 is a realistic prediction.
As mentioned earlier, researchers from Zillow expect home prices in the Atlanta-Sandy Springs metro area to rise by around 1.5% over the next year or so. But bear in mind that (A) this is an educated guess and (B) market trends can vary from one city to the next within the same metro.
If you look at Atlanta home price trends going back to the 1990s, you’ll see there were only two major downturns. One downturn occurred during the Great Recession, and the other happened a couple of years ago (post-pandemic).
Our prediction: In the Atlanta housing market, home prices will remain mostly flat in the short term with gradual growth resuming during the first part of 2025. This upward trend could continue for years, barring any unforeseen economic calamity.
3. Is the market going to crash in 2025?
Home buyers often worry about a severe “crash” type scenario that wipes out much of their home equity. And it’s a valid concern, considering many of us remember the housing market crash of 2007 and 2008.
But home buyers in Atlanta can rest easy on that score. It’s highly unlikely that the Atlanta-area real estate market will crash or suffer a major downturn in prices during 2025.
Subprime, risky mortgages largely contributed to the 2008 housing crisis mentioned earlier, and most lenders have stopped offering those products.
Atlanta has good market fundamentals, a strong economy, and a non-concerning rate of foreclosures. This makes a real estate crash scenario unlikely in 2025.
4. Is Atlanta more of a buyer’s or seller’s market?
A buyer’s market occurs when there are more homes listed for sale than there are buyers, giving house hunters more negotiating leverage. And according to the “market heat” monitor from Zillow, the Atlanta metro area recently moved into buyer’s market territory for the first time in years.
Inventory has a lot to do with this. As mentioned earlier, housing market supply in the Atlanta metro area has increased over the past few years. This gives buyers more options while easing competition. It also makes sellers more inclined to negotiate, since they no longer have buyers “lining up” to make offers.
5. Will 2025 be a good year to buy a home?
This is a question that individual home buyers must answer for themselves. You would do this by evaluating your current financial situation, including employment and income stability, along with your long-term goals.
But from a market and investment angle, 2025 could be a great year to buy a home in the Atlanta area. We’ve covered some of the reason why already. Here’s a recap:
- Home prices in the area are likely to rise for the foreseeable future.
- A real estate market crash or major downturn doesn’t appear to be on the horizon.
- Atlanta is one of the most affordable major housing markets in the United States.
- Atlanta is a business-friendly area with a strong economy and job market.
Atlanta-Sandy Springs Metro Area Overview
The Atlanta-Sandy Springs-Roswell metropolitan statistical area (or “Metro Atlanta” for short) is the most populous metro in the state of Georgia, and eighth-largest in the United States. It includes five core counties: Clayton, Cobb, DeKalb, Fulton and Gwinnett.
Metro Atlanta is situated in the foothills of the Appalachian Mountains in the southeastern United States. It encompasses 28 counties in North Georgia, making it one of the largest metropolitan areas in the country when measured by land area.
Major Cities
- Atlanta: The capital of Georgia and a major economic center for the Southeast.
- Sandy Springs: A large affluent suburb located just north of Atlanta.
- Roswell: Another large and historic suburb situated north of Atlanta.
- Marietta: A major suburb to the northwest, known for its historic town square.
- Alpharetta: Prosperous technology hub located in the northern suburbs.
Population
- Metro Atlanta: Home to over 6 million residents, making it the 8th most populous metropolitan area in the United States.
- Atlanta (city proper): Approximately 500,000 residents within the city limits.
- Demographics: The Atlanta metro area is known for its diversity, with a significant African American population and growing communities of Asian and Hispanic residents.
Climate
- Humid subtropical: Atlanta experiences hot, humid summers and mild winters, with occasional cold snaps.
- Four seasons: Residents enjoy distinct spring and fall seasons.
- Rainfall: The area receives abundant rainfall throughout the year.
About the Local Economy
A wide range of industries contribute to the local economy in and around Atlanta. Prominent industries include transportation and logistics (Hartsfield-Jackson is the world’s busiest airport), financial services, healthcare, information technology, media and film production.
The Atlanta metro area is home to numerous Fortune 500 companies, including Delta Air Lines, The Coca-Cola Company, Home Depot, UPS, Norfolk Southern and more.
The job market remains strong in Atlanta. In early 2024, the metro area had an unemployment rate of 2.8%, which was quite a bit lower than the national average (3.7%) at that time.
The area’s strong economy attracts new residents and gives them the financial means to purchase a home. This, combined with relatively low home prices, helps to support the Atlanta real estate market even during economic downturns.
Disclaimer: This report includes housing market predictions and projections for the Atlanta, Georgia metro area extending into 2025. Those forecasts were gathered from third parties not associated with the publisher of this site. The Home Buying Institute (HBI) makes no claims about future real estate market conditions, trends, or prices.
Brandon Cornett
Brandon Cornett is a veteran real estate market analyst, reporter, and creator of the Home Buying Institute. He has been covering the U.S. real estate market for more than 15 years. About the author