Yes, it probably is. In fact, it’s fair to say that the Atlanta metro housing market is a few months past any supportable market peak, and there is some good data to support this conclusion:
1. Incomes in metro Atlanta and Georgia in general are down significantly. Here is a report from the Department Of Numbers, that details the dismal facts about average incomes in the Atlanta market, and how they have fallen 14-plus percent since peaking in 2005. The trend is downward not upward, and average per capita income in the City of Atlanta is below $28,000 per year. Workers in the $64,000 bracket in 2005, have seen their annual income decrease by more than $10,000. It’s only logical that rent rates and home prices cannot continue to increase unless incomes are keeping pace and supporting those increases.
With the virtual collapse of residential construction, thousands of other jobs connected to the housing industry disappeared or incomes were drastically reduced. The new factories being built in Georgia only require a small fraction of the number of human workers who were once needed. …read more