How many people in 1bdr apts paying ~1.5-2k/mon are cooking enough that a gas stove is a hard requirement? I cook a fair amount but don't consider myself enough of a chef to need more than a galley kitchen in an 800sf home.

When I looked at Post Biltmore in mid '08 (squarely in the recession), they wanted over $1,200/mon for their beat up 1bdr on the 1st floor where trains would shake the room. The units were carpeted, formica countertops, and the $400 super saver black GE appliances from an HH Gregg scratch & dent sale.

Checking their site now, they still charge at least that much. I'm not saying oversupply won't drive prices down but it'll hit the overpriced Post stuff just as hard since most people would rather live in a shiny new highrise vs. a rundown stick built lowrise.

As to buying in SFHs for 1500-2k/mon. There aren't any SFHs in decent areas at anything near these rents inside the perimeter. My dog would love a big yard but I just can't imagine chaining myself to a 2-3k/mon home cost for 30 yrs. For now, my 3 figure(15yr) mortgage payment will have to do inside my Novare box which seems to hold up better than most stick built homes in the burbs I've seen.

I've been saying this for quite sometime. As a matter of fact, you mr urbanist, have said the market would be able to sustain the high rents. I have said all along that there aren't enough successful 20-30 somethings to fill all the high rent apartments coming to market and the 30-40 somethings who can afford to pay those rents usually find the economic advantage of owning instead. When the supply outpaces the demand, the rents go down and undesirables move in at the lower rates. Just look at what happened to 1280 Peachtree and the Art Center Tower years back. That will happen to these new towers, just at a faster rate.

Now some may say that these apartments will turn condo. That may be true, however, they won't be selling at a very premium price. These new apartments are being built on the cheap. No finished ceilings, cheap counter tops and fixures. On top of that, most of the new spaces are small one bedrooms and studios. Those don't sell well whether it's a conversion or not.

Call this the apartment bubble that's about to pop in 2-3 years if not sooner.

What design flaw are you referring to in the some of the 2BR kitchens?

@ Justin - You're missing the point. First, the average rents at these properties are well in excess of $2,000. Second, skimping on things like gas ranges (in self purported "luxury" buildings) is just an example of the lack of attention to detail / corner cutting that developers get away with in Atlanta.

Regarding home sales, if you're looking at mortgages between $2k - $3k per month, which is where the average rents for these newer buildings shake out at, there are plenty of in-town homes that price out in that range. On top of that, your effective mortgage is probably 20% less or so (depending on your tax bracket) when you consider interest deductions.

That said, I agree - I wouldn't chain myself to a 30yr mortgage in Atlanta either. However, the general mentality (backwards as it may be) of many is that home ownership is the pinnacle of human achievement.

@ Tyler - There was a design flaw where they miscalculated the dimensions of the kitchens, and have a big gap between the refrigerator and the counter, in some of the units. They may have fixed this, but it was an issue not that long ago.

@ Dookie - Wrong. Again. I've argued that there is demand for these units, which there clearly is. I've also argued that adding multifamily housing is an integral component for building out a city. However, I continue to express disappointment at the type of housing (more related to the lack of creativity, urban design, and the surplus of parking) that keeps getting built.

Will there be the same level of demand and activity 3, 4, 5 years from now? I don't know. That's really up to the city. If it continues on it's current path of wasting large portions of blocks for parking decks, and embracing the type of poorly thought out plans and development, then no. If they get their act together, and start acting like a real city, it's more than possible.

@urbanist, first you start the comments by saying "There's just not enough going on in the city to attract people willing to pay big city prices, particularly when there are many decent single family housing options at mortgage rates lower than these rents."

Then you reply to me by saying, "I've argued that there is demand for these units, which there clearly is."

Which is it? Is there not enough going on in the city to attract people i.e. low demand? Or are you arguing that there is demand? You have a great talent for talking out of both sides of your mouth. I bet you're a used car salesman. LOL.

When you get your facts straight, come back with an intelligent reply.

Yes. Older units in Midtown residential often rent for less than $700/bedroom. They also often rent fast and to referrals of old tenants or neighbors and so do not require being put on craigslist.

There is no rent control in Atlanta, so it doesn't matter how long someone has had their apartment. The landlord can up their rent by any amount they want at the end of a lease. This isnt NYC.