1280 W Peachtree is an outdated building in a bad location that has decided to accept renters because the HOA was poorly managed for years. Renters like the ones who will be looking to live in Midtown in an upscale, high-rise apartment i.e. young professionals, will not cause property values to decline. This isn't Gwinnett County. There are not going to be Section 8 dwellers occupying these spaces. It will be successful 20 and 30 somethings who have lived in real cities before (ahem, not Atlanta) and are seeking real city life, which is urban, walkable, accessible via mass transit and offers many amenities (bars, restaurants, retail, office space, etc.).

Right, Midtown is going to be a "ghetto" that houses the headquarters of most of the major SE law firms.

Have you seen the prices on these rentals? They are not cheap.

Have you even seen Skyhouse or 77 12th?

Congratulations, you're an idiot. Bringing more people into a city, drawing in more businesses to serve those people, and creating more economic activity in the area is going to bring down the values of the condos? Brilliant analysis. Not being a "prime tenant" means you're fit for the ghetto? Brilliant again.

This is a perfect exemplification of the type of trailer trash that is such a thorn in the side of Atlanta's potential.

Urbanist is right. The new apartment buildings are nothing but good news. Complaints about the architectural style of the new buildings aside, this is what midtown and the rest of Atlanta desperately needs. I own a condo overlooking the new developments on 7th Street and I couldn't be more pleased. We need density. If we can get more people to move to the area everything else we want to achieve from an urbanism standpoint gets closer to reality. If there is any complaint to be made, it is the over emphasis on "luxury" apartments. I'm sorry Dookie Doo but you really could not be more wrong on this.

When the bubble bursts, you'll see I was right.

Upside is when demand outstrips supply price must go up. So more homeowners who might be looking to sell if they are not too far underwater will be converted to sellers more quickly if demand for Midtown condos continues at current pace and prices keep rising steadily.

Yes it wil bring people but will it bring quality people? Usually renters are not the ideal neighbors. They have no ownership stake so they have less respect for the community. I know a lot of those condos at 1010 midtown sell for half a million and up. Bringing in transients are not going to be good for property values.

Good god..."renters are not the ideal neighbors"? There are plenty of renters in this city, and every other city across the globe, that are far better neighbors and far larger contributors to their city than you are. Unfortunately, Atlanta is full of Kennesaw transplants that think the apex of accomplishment is home ownership. Point in case.

Urbanist, you must be one of those renters who couldn't qualify for a home loan so now that they put up these fancy looking but cheaply built apartments, you can now afford to live in midtown. Well good for you. Bad for the people who had the ability to purchase as oppose to rent.

@ Dookie - I'm a renter who probably pays more in rent than you do on your mortgage. However, I rent because I like my mobility. I don't like the idea of having to fix my own appliances when they break, having to mow a yard on the weekends, or losing the opportunity to change places and/or cities when an opportunity to do so comes along. I also know that measuring my life by what I experience and accomplish, rather than what I own, is a much better gauge of value.

P.S. - you do realize that the virtues, well the delusion of those virtues, of home ownership that you're preaching about are what got our economy where it was today. To simplify that, it was morons who were duped into putting their entire lot in life into a piece of property because they thought it would add some prestige to their life. Didn't quite work out that way...

@Urbanist. I'm wouldn't be surprised you pay more in rent that I pay for ownership. That's a huge investment mistake if you ask me. Pay more upfront and have no equity in the back end. That makes a lot of sense. Even if you are "upwardly mobile", as you can see, the rental trend is currently hot. Even if you had to leave, if you owned, you could rent your condo if you had to leave. When the market for rentals eventually cooled and the buying market heated up, you could have kicked the renter out and sold the place making a profit on the back end with the increasing equity. What are they teaching you kids in college these days?

@ Dookie - So you're not surprised that I likely pay more than you to for your mortgage, but you implied that I would be unable to qualify for a mortgage. That makes sense.

"Pay more upfront and have no equity in the back end"

How did that work for those that paid more up front and expected equity on the back end a couple of years ago? Oh, that's right - many not only lost all their equity, but they actually have negative equity in their properties...so they paid more up front and had less than what they started with.

As far as my mobility is concerned - what if I don't want to be a landlord? What if I don't want to have to manage leasing, repairs, and renters from 1,000 miles away? According to you, it makes more sense to pay more up front, wind up with less on the back end, and have to deal with the headache of being a landlord....for what? So I can say I own a home? Yipee...

What they're teaching us in college is not to follow the incorrect, ignorant, status quo advice from people with their heads up their tails.

@urbanist, you can't qualify for a mortgage based on you crap credit and living beyond your means in your over priced apartment. Appearently you went to some second rate college that taught you not to follow "status quo". If status quo is for people like me to buy cheap in the recession and sell high to the people that missed the boat 6 months from today, I hope you stay out of the market and let guys like me make all the money. Maybe I'll even give you the priviledge of overcharging you for rent one day. LOL.

Just because they're professional doesn't mean they're going to maintain a community like an owner. I know a guy who lives in one of these "upscale buildings." His neighbor below him is a 20 something woman who proabably earns a good living to be able to afford to rent there. However, she acts like complete white trash. Loud parties at night, allows her dog to use the bathroom on her balcony and not clean it up causing a stench. It's ridiculous. I sure wouldn't want her for a neighbor. But that's what you get from renters. I would think that these new apartments are being build for those who want to live in midtown but can't afford to buy. Just because you live in an "upscale" building doesn't automatically make people upper class.

You don't get out much do you? There are wonderful neighborhoods south of I-20 that are filled with successful young people. Guess you've never been to Grant Park, Ormewood Park or Glenwood Park, have you? Stay in Buckhead all you want.

How would you possible know if this will oversaturate the apartment market. And that market is different from the condo market you cite.

Obviously they can't supply the optimal inventory at all times since they are looking into the future. But the upscale apartment market was under-served.

I think people generally underestimate the number of people moving intown in Atlanta. Not just from OTP but from other cities.

Other than understanding basic supply-demand theory and principles, you clearly have no idea what you're talking about, evidenced by your numerous babbling posts. You sound like you're a native OTP resident and like to poo poo on intown happenings. Get a life. Enjoy your hour-long commute tonight.

@Filtered, explain what it is you think I don't understand. Have I said anything that hasn't happened already with the condo market that is just now recovering? Oversaturation will lead to lower prices which leads to lower quality renters. What part of that don't you understand?

"Renters are bad"??! - HA! Most people who become condo owners are/were renters. If you're concerned about oversaturation of the renters market into the condo market you're forgetting that apartments and condos are two different markets. Yes, some condos have been converted to apartments and some apartments are designed to eventually turn over into condos- but that doesn't have a drastic negative impact to de-value condo's across the entire city. There are plenty of condo owners who are bad neighbors as well.

"Renters didn't do much to clean up "West Midtown" " - What are you referring to concerning "clean up"? Funny how some of the city's best restaurants (even some ranked as the top in the country) are located in West Midtown. There are many more factors other than renters that contribute to a community's presence.

@Tyler. Let me guess........ You're another one if those 20-30 something transplants from some sh!thole little town in Mississippi or Alabama who want a trendy new apartment in a fancy building but don't have the credit or income to buy one of those pads. So as soon as news breaks that there's going to be brand new glass buildings with rentals in them, you jump for joy because you finally have the opportunity to experience what you thought would never happen. Little do you realize what letting people like you in the neighborhood will do to the truly successful people who are able to afford to buy. I'm sure those people are thrilled to have guys like you as neighbors.

I think it just depends on the person. If you are an A-hole while renting, you are gonna be an A-hole owner too.

Also each apartment complex is different. I rented at Highland Walk in O4W and had a great experience. I then rented at Eon @ Lindbergh and it was full of wanna be rappers and was awful and much more expensive than the previous place.

I would always check https://www.apartmentratings.com/ before moving into a place to see what really goes on.

Are you really trying to validate "truly successful" people as condo owners and homeowners? I know plenty of successful people who could afford to buy a condo but just are not willing to take that risk at this moment. Some professionals know they will be here for less than 5 years because of job/career situations. Some are being mindful of what true success is and saving in order to buy a condo, house, etc. Sure I could afford to buy a condo, but I'd rather be more financially sound than contribute to the volatility of the housing market- which caused us this big mess in the first place.
That being said name ONE place in the world where there's a successful neighborhood that is solely condos.
Some of the most successful neighborhoods are the ones with diversity- diversity in housing, population..... even diversity in density, culture, and history. If you ask me it sounds like you invested in the wrong area at the wrong time with your condo.
You referenced earlier:
"When supply beats demand, prices will be lowered to the point that the common joe schmoe will move in and bring property values down. Nobody thought it would happen with the condos built between 2004 and 2008 but it did. People scooped up units in viewpoint, spire and metropolis for a fraction of what the original asking price was. Part of the problem was the supply outnumbered demand for a time period."
The reality is that this was caused be homeowners - NOT renters.

Both Skyhouse and 77 12th street both have a good number of apartments already pre-leased. Skyhouse is now finally open and 77 12th (floors 6 - 9) will be open this spring. They will in no way be empty. I'll find the article that gives you the pre-leasing data so you can have the facts. Let me track it down....

I have a friend who just moved into Skyhouse because it's close to his job. Incredibly nice place, gorgeous cabinets, granite counters, it doesn't look like a rental, and it's a place a person could actually be proud to say they rent.

Nice post, NewNeighbor. I live down the street at Plaza and am currently renting. I have to say I think Plaza is one of the best locations in Midtown and I dont know why people think being a few blocks over on Peachtree is better. I have easier access to the Connector and it is easy to shoot up W Peachtree to Buckhead. Steps away from MARTA makes commuting to the airport easy. I like Skyhouse's location. If you're into Crossfit check out Crossfit Midtown right there!

Will be interesting to see how all of the apartments fair. With rental limits on condo buildings in Midtown and many people (like me) wanting to rent highrises in Midtown, I can see the need. I could see the apartments being converted to condos down the road.

I agree. There are a lot of retirees in Midtown. I meet them weekly, when our "kids" aka dogs, decide to stop and sniff each other, lol. I somehow find myself in deep conversation with them, and many of them have huge luxurious estates in another city, but also have a condo in Atlanta. I usually find that they are from other southern states and to them Atlanta is as big city as they want to get.

Thanks for mentioning this. It seems many people just look at what it costs (actual rent v. mortgage) in that one monthly payment number, and decide it's a better investment to own. There's so much more to it than that. I had a friend that just bought her dream home and 6 months later, had an urgent and necessary plumbing project that cost 6k, or in the case of my parents, their furnace went out just a couple of weeks ago, 8k, and the house isn't really that big. These types of repairs or just the regular upkeep and maintenance, can really cause a financial mess. People have been brainwashed to believe that ownership is the end all, be all. It's nice to see people waking up from this myth.

Btw, in response to the suggestion that renters are "bad" for a neighborhood... Most are working professionals who spend their money in the shops and stores, volunteer, and contribute to the neighborhood just the same as owners.

Thanks for the chart. Interesting note, all the studios are basically gone. People WANT to move to Midtown but for as low as possible. Smart move for the renter, actually.