Second-home buying activity cooled in Atlanta in 2024, reflecting a broader national trend of declining discretionary home purchases amid higher borrowing costs.
Across the country, second-home mortgage originations fell year over year in 30 of the 50 most populous U.S. metro areas. Atlanta was among those posting declines.
Atlanta’s Second-Home Market by the Numbers
In 2024, the Atlanta metro recorded:
- 666 second-home mortgage originations
- 9.3% year-over-year decrease
- 0.9% of total mortgage originations attributed to second homes
- Median second-home value of $435,000
The nearly 10% annual drop highlights the sensitivity of second-home purchases to interest rates and broader economic conditions. Unlike primary residences — which are typically need-based purchases — second homes are often discretionary and more likely to be postponed when financing becomes more expensive.
Why Activity Slowed
Several factors likely contributed to Atlanta’s decline:
1. Higher Mortgage RatesElevated rates throughout much of 2024 reduced affordability, particularly for buyers financing vacation homes or investment properties.
2. Investor CautionWith rental markets stabilizing and price growth moderating in some areas, some investors may have taken a more conservative stance compared to the rapid acquisition pace seen during the pandemic-era housing surge.
3. Shifting Migration PatternsWhile metro Atlanta continues to grow, some out-of-state buyers may be prioritizing primary residences over additional property purchases in the current rate environment.
A Smaller Share of the Market
Second-home mortgages accounted for just 0.9% of total mortgage originations in Atlanta in 2024 — a relatively small segment of overall housing activity.
Despite the decline, the median second-home value of $435,000 indicates continued interest in higher-end or investment-grade properties. However, the contraction suggests buyers are becoming more selective.
Implications for Buyers
For those considering Atlanta as either a relocation destination or investment market, the slowdown may present opportunity:
- Less competition in the second-home segment.
- Greater negotiating leverage in certain submarkets.
- Potential pricing stability compared to peak pandemic conditions.
While Atlanta remains a major economic engine in the Southeast, 2024 data show that second-home demand has moderated in line with national trends. Buyers evaluating the region may find a more balanced market environment compared to recent years.