The Case for Buckhead’s Greater Residential Real Estate Market

Buckhead’s Place in Atlanta

View from 183 Lindbergh looking across Buckhead's rich tree canopy towards the commercial corridor of Peachtree Road

View from 183 Lindbergh looking across Buckhead’s rich tree canopy towards the commercial corridor of Peachtree Road

Atlanta boasts a very strong and diverse economy, productive workforce, a range of school options along with cost-effective collegiate options courtesy of the Hope scholarship and a world-class state university system. These factors, along with a desirable climate, coalesce to draw people from all over the world to this area. Buckhead continues to be Atlanta’s most exclusive single-family market. The case for Buckhead development remains strong – as it is set aside from the City of Atlanta, now more than ever. Buckhead is now considering its own municipality, which would present a host of challenges for Atlanta. However, Sandy Springs and Brookhaven have thriving real estate markets after separating from Atlanta, and we predict that the same would be true for Buckhead.

 

Defining Buckhead

Buckhead is the region’s largest and most affluent urban mixed-use development area, combining major offices, retail, hotels, restaurants, entertainment spots and high-rise residential units within its commercial core. With more than 21.7± million square feet of office space (16.8± million square feet of which is class A), the Buckhead office market is Atlanta’s foremost business district, commanding the highest rents of all major metro central business districts in greater Atlanta. Retail development in Buckhead is diverse and varied by product type and price point. There is everything from two super-regional malls (Lenox Square and Phipps Plaza) to small boutique shops. This commercial core is uniquely surrounded by stately historic neighborhoods with a lush canopy of trees.

 

The Greater Buckhead Market

The greater Buckhead area includes sought-after areas such as Midtown, Sandy Springs (separate municipality) and Brookhaven (separate municipality). In some areas, the Buckhead market goes seamlessly into these contiguous markets. Perhaps the most notable example is ZIP Code 30327. This ZIP Code has the region’s most expensive housing and includes portions of Atlanta, unincorporated Fulton County and Sandy Springs.

 

Outlook

Greater Buckhead has very strong fundamentals. High barriers to entry and limited land will continue to constrain supply. With increased employment in the Buckhead area and even conservative projections of population growth, single-family housing prices will climb higher still. This, in tandem with continued low borrowing rates and large concentrations of wealth, make Buckhead development and renovations a good investment for the foreseeable future.

 

Market Performance Attachment:

Please see the attached Trendgraphix report for Buckhead and Sandy Springs inside the Perimeter. We think expanding the market area into Midtown, Brookhaven and other areas pick up very different markets. Buckhead is referred to by FMLS as area 21. A portion of Sandy Springs inside the Perimeter (I-285) is referred to by FMLS as area 132. The attached combines 21 and 132. Here are some takeaways from that:

 

  • Available for sale detached housing is very scarce. If we compare the First Quarter of 2020 against the First Quarter of 2021, you see a 41.3% reduction in inventory
  • The amount of sales over the same period has spiked 88.8%
  • You also see an impressive increase over the same period in pending sales – 48.8%
  • Lastly, since this data was available, we have seen continued market tightness. It is clearly a seller’s market in Buckhead

 

Buckhead at a glance

Buckhead differs greatly from the city as a whole on income and wealth in the form of homeownership:

 

Median household income

$100,414 in Buckhead vs $58,167 in Atlanta

 

Average household income

$157,835 in Buckhead vs $99,153 in Atlanta

 

Per capita income

$81,684 in Buckhead vs $44,736 in Atlanta

 

Median home value

$645,461 in Buckhead vs $336,684 in Atlanta

 

Median home value

$786,967in Buckhead vs $463,063 in Atlanta

 

Sources: Livable Buckhead, Buckhead Coalition, Atlanta Regional Commission (per Reporter Newspapers.)

 

George Heery & Neal Heery

  1. 404.643.7347 n. 404.312.2239 o. 404.237.5000

[email protected]

[email protected]

heerybrothers.com | sothebysrealty.com

 

Atlanta Fine Homes Sotheby’s International Realty

3290 Northside Parkway, Suite 200, Atlanta, Georgia 30327

 

 

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