You can’t talk about development in Metro Atlanta without discussing the Atlanta BeltLine. This revitalization project is the biggest ever initiated in Atlanta. While the project won’t be fully completed until 2030, we wanted to learn how open segments of the BeltLine have impacted nearby homeowners thus far.
What is the Atlanta BeltLine?
First, let’s go through a brief overview of the Atlanta BeltLine, for anyone who might be unfamiliar.
The concept for this revitalization effort came about in 1999, when a Georgia Tech graduate student proposed the idea for his thesis. The vision was to take an integrated approach toward transportation, land use, greenspace, and sustainable growth.
Since then, the project has evolved to include 22 miles of multi-use trails, modern streetcars and parks.
How is it affecting homeowners?
One of the main goals of the project, according to the Atlanta BeltLine organization, is to create affordable housing opportunities for local homebuyers. Its website reads, “To date, $12.5 million has been dedicated to affordable housing: providing dollars to homebuyers through down payment assistance, funding for land acquisition for future affordable housing, and incentives to developers to build affordable housing.”
After pulling the numbers from the FMLS, we’re seeing that neighborhoods surrounding the western tip of the BeltLine would benefit most from the revitalization effort. While there’s still much work to be done for homeowners in these areas to see their properties fully valued, there’s been some improvement in recent years.
This segment of the BeltLine opened back in 2010, and it connects the Ardmore Park, Collier Hills and Collier Hills North neighborhoods. Our point of interest for analyzing the Northside Trail is Tanyard Creek Park.
Year-over-year, home prices within two miles of this segment have seen incredible gains.
In 2012, median prices in close proximity to Tanyard Creek Park were $250,061 – that’s 51.5% more than the overall median price in Atlanta at the time. Although these homes were going for peak prices at the time, they still took 95 days on average to sell.
On a year-over-year basis, we’ve seen overall City of Atlanta prices somewhat catch up to Northside Trail prices. In 2016, prices of homes within two miles of the Northside Trail were 22% more than they were for the overall city.
WEST END TRAIL
The first phase of the West End Trail opened in October 2008, and the second phase in June 2010. It includes Gordon White Park, and connects three neighborhoods: West End, Mozley Park and Westview.
There’s a massive disparity with what we are seeing near Gordon White Park vs. the Greater Atlanta market.
In 2012, it took 95 days on average to sell homes within two miles of Gordon White Park, and the median sale price was only $25,000. Last year, homes sold significantly faster – taking only 46 days to get the ball rolling on transactions. Still, prices remained relatively low as the median price was just $70,000.
The days it takes to sell a property have steadily decreased over the last several years, which local sellers might want to take this as indicator of the area’s increasing desirability. As of April 25, 2017, there were 117 properties for sale near Gordon White Park, with the median price coming in at $130,000.
SOUTHWEST CONNECTOR SPUR TRAIL
Phase I of the Southwest Connector Spur Trail opened on August 10, 2013 and is made up of 1.15 miles of trails. It will ultimately be 4.5 miles long, and will provide better connect the Beecher Hills and Westwood Terrace neighborhoods of the Atlanta.
Interestingly, we saw prices within a two-mile radius of the Southwest Connector Spur Trail increase dramatically from 2012 to 2013, when the first phase opened. Median home prices jumped a whopping 53.3%. In 2016, sellers saw a median home price of $210,000, and their properties took just 39 days to sell.
This is massive. From 2012 to 2016, prices went up 133.3% hitting a median of $210,000, and the time it took to sell a property dropped by 53%. This speaks volumes about this area’s desirability. We’re expecting that these prices will continue to rise, as year-to-date 2017, nearby homes took an average of just 15 days to sell.
We’ve analyzed home values near 50-acre Perkerson Park in the past.
Overall, home values near Perkerson Park remain low. In 2016, sellers received a median of $74,950 for their homes, which was 70% less than overall Atlanta prices.
The Capitol View neighborhood of Atlanta, where Perkerson Park sits, is the prime example of an area the City is stepping in to assist with affordable housing opportunities. However, investors are trying to get in now. Curbed Atlanta reported in 2017 that Capitol View was rated the second-hottest real estate neighborhood to watch this year.
The Westside Trail is still under construction and scheduled to open in the summer of 2017. Much like Pekerson Park, this segment’s neighboring homes are struggling to gain value.
Our point of interest here was the Kipp Strive Academy, as it was the midpoint of the trail. In 2012, properties within a two-mile radius sold for just $23,150 and took 99 days to receive offers. In 2016, sales prices increased to $65,000. More notably perhaps, is that the average time it took to sell a home went down by more than half. In 2016, homes near the Westside Trail sold within 46 days.
Price growth has been low, but homes are selling faster. Investors might be anticipating the potential of the neighborhood, and getting in while values are still low.
ARTHUR LANGFORD, JR. SKATEPARK
The properties that surround Arthur Langford, Jr. Skatepark have remained considerably below the city’s median prices, but prices have increased a fair amount over the years.
In 2012, the median sale price for a home within two miles of the skate park was $31,256. Last year, the median price came in at $87,981. While that may not seem like much, that’s a 181% increase in pricing. The days it’s taking properties to sell is also quite telling. Home sold 1.5x faster in 2016 compared to 2012.
What’s going on in the area? This Southwest Atlanta neighborhood, known as Lakewood Heights, has a poverty rate that hovers around 30%. Many homes in the area sat abandoned for years, and many still do. Community leaders and organizations are working hard to revitalize the neighborhood, but it will certainly take a while for property values to rise near surrounding BeltLine neighborhoods.
D.H. STANTON PARK
D.H. Stanton Park is Atlanta’s first energy cost-neutral park, with its solar array generating enough energy to power 10 homes.
Something incredible happened in the area surrounding this park from 2012 to 2013. Prices skyrocketed, jumping 63% – and the time it took to sell a home decreased by 28%. The grand re-opening of the park, which occurred in 2011, may have played a role.
Median sale prices have continued to grow steadily since then, and nearly caught up to overall Atlanta prices in 2016.
BOULEVARD CROSSING PARK
Boulevard Crossing Park had its first phase open in 2011, which introduced five sustainably-built acres to the BeltLine. The developers even used goats to help clear an invasive species of vines!
As for housing values, we’re seeing a similar story to the one we just covered near D.H. Stanton Park.
From 2012 to 2015, median sale prices for homes nearby Boulevard Crossing Park were below the overall median in Atlanta. That changed in 2016, when prices hit $257,500. The area became fully valued, surpassing the city’s median by 2.7%.
The Eastside Trail is a two-mile stretch that connects Piedmont Park, Historic Fourth Ward Park and the Freedom Park trail.
Our point of interest for this analysis was the intersection of 10th Street and Monroe Drive. Each of the segments we analyzed in the East look like this. In 2016, all home values exceeded what the City of Atlanta is seeing as a whole.
Homes within two miles of the Eastside Trail have overindexed in price as far back as our data shows, which tells us that this has been a desirable area of Atlanta for quite some time. Last year, properties sold for a median of $285,000 and took 40 days to sell.
HISTORIC FOURTH WARD PARK
According to the BeltLine’s website, “Historic Fourth Ward Park is a glistening oasis where there once stood little more than cracked asphalt, trash-strewn fields, and an empty promise of something more.”
That’s incredibly interesting to think about when we look at nearby home transactions.
Properties near the park have consistently sold for above Atlanta’s median prices.
Although homes they sell for slightly less than those near the Eastside Trail, homes near Historic Fourth Ward Park are on market for less time. Because they are selling faster, we have reason to believe that sellers might have some room to earn a higher upside.
EASTSIDE TRAIL EXTENSION
The Eastside Trail Extension is a highly anticipated part of the Atlanta BeltLine, which is slated to open later this year. It will add 1.25 miles of multi-use trail to the project.
We focused on the Krog Street Market as the midpoint for this analysis.
Unlike the other two eastside segments we covered above, prices of homes within two miles of the Eastside Trail Extension indexed below overall median prices until last year. In 2016, the median price of homes skyrocketed to $275,000, which was 10% more than what the City of Atlanta saw. Homes are now going faster in this area than they are in any of other areas we analyzed.
We can’t say for sure why this area is in such high demand all of a sudden, but we suspect that the Krog Street Market might have something to do with it. This mixed-use development opened in 2014, and brings a trendy arts and foodie vibe to the neighborhood.
Visions of the Atlanta BeltLine in 2030 …
There’s still much work to be done toward the Atlanta BeltLine project, but so far, the outlook seems incredibly positive for nearby homeowners. The most notable metric to consider is days it’s taking to sell these properties. Year over year, it’s taking less time for sellers to receive offers, which speaks to the desirability of owning a property near the BeltLine. There’s a lot of room for sellers to price strategically, market effectively and reap the benefits. To learn how Knock is helping sellers get the optimal return on their investments, read up on our strategy.