Atlanta and Boston face off – in real estate

by Lauren Arbuckle

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With the Falcons and Patriots poised to play each other on Sunday, HomeUnion has taken a close look at each team’s home region to determine which offers better opportunities for real estate investors.

The rental investment company analyzed the Boston and Atlanta housing markets, weighing factors such as rents, employment growth, cap rates, median prices and construction to determine which single-family investment markets is preferable for investors. In its analysis, HomeUnion gave preference to high cap rates and lower entry costs, noting that these ensure stronger short-term returns.

So which metro wins?

According to HomeUnion, Atlanta leads thanks to strong employment, which is expected to grow by nearly 3 percent in 2017. Strong employment will continue to help raise rents and occupancies in Atlanta, where median home price is also quite affordable – 2016’s median home price was $115,000. Cap rates in 2016 exceeded 7.5 percent.

Boston’s median home price in 2016 was nearly $300,000, more than twice that of Atlanta. With cap rates at 5.4 percent and vacancy levels expected to drop 21 percent this year, investors eyeing the Greater Boston area will have to contend with low inventory and entry level prices that are higher than average.

It remains to be seen which football team will come out on top, but as far as HomeUnion is concerned, Atlanta currently offers the superior single-family rental market.