e Obama Administration’s Eff orts to Stabilize  e Housing Market and Help American Homeowners | November 2011 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

Spotlight on Atlanta MSA | Page 1

Spotlight on the Housing 

Market in Atlanta-Sandy 

Springs-Marietta, Georgia 

The Atlanta-Sandy Springs-Marietta, Georgia Metropolitan Statistical Area (Atlanta MSA) includes fi ve core counties (Clayton, Cobb, DeKalb, Fulton, 

and Gwinnett) and 23 other counties in northwest Georgia. Although the share of distressed mortgages in and around Atlanta – those 90 or more days 

delinquent, in foreclosure, or bank owned – has been above the national average since mid-2000, the local foreclosure crisis has generally mirrored 

that of the nation as a whole, with a signifi cant rise in delinquencies and defaults among subprime loans beginning in 2007. During the early part 

of the decade, local home prices grew at a slower pace than the national average; however, home prices in the MSA have since fallen by nearly as 

great a percentage as in the rest of the country. Declining property values in Atlanta and the extent of underwater mortgages in the current market 

were fueled in part by rising defaults but also by excess housing construction in the years prior to the crisis – which also increased rental vacancies 

and contributed to eventual price declines. The housing market in Atlanta remains fragile - with a high percentage of distressed mortgages, deeplydiscounted foreclosed properties, low property values, and many severely underwater mortgages. Access to available credit also remains a barrier 

for potential and existing homeowners. However, the Administration’s broad approach to stabilizing the housing market has been a source of real 

help to homeowners in Atlanta and surrounding cities. This addendum to the Obama Administration’s Housing Scorecard provides a summary of 

trends and conditions in the local economy and the impact of the Administration’s efforts to stabilize the housing market and help local homeowners.

Population Growth, Employment, 

and Housing Market: 

According to the most recent Census, the Atlanta MSA has a 

population of 5.27 million which has increased by an average 

of approximately 102,000 people (2.4 percent) each year 

since 2000 – including an average of 55,000 new residents 

that moved to the area. Migration was the most rapid between 

2005 and 2007 when an average of 62,000 jobs a year were 

added. Population growth peaked at 160,000 in 2006 but 

has since slowed to less than half that level. Household growth 

averaged 2.5 percent annually between 2000 and 2010, 

but net annual housing unit growth at 3.2 percent exceeded 

corresponding population and household growth rates. 

Atlanta Housing Unit Growth Outpaced Populati on and 

Household Growth During the Past Decade

Date of Census 4/1/2000 4/1/2010

Atlanta MSA Populati on 4,247,636 5,268,860 

Annual Growth Rate - 2.4%

Atlanta MSA Households 1,554,154 1,937,225

Annual Growth Rate - 2.5%

Atlanta MSA Housing Units 1,644,572 2,165,495 

Annual Growth Rate - 3.2%

Source: Census Bureau (2000 and 2010 Decennial) with 2000 Data Adjusted to 

Refl ect 2010 MSA Defi nition.

Spotlight on the Housing Market in Atlanta-Sandy Springs-Marietta, Georgia

Date Atlanta	
  MSA	
  Population

4/1/00 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  4,247,63

4/1/10 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  5,268,86

Source: Census Bureau (2000 and 2010 Decennial)

Population	
  Has	
  Increased	
  in	
  Atlanta	
  Dur

0	
  

2	
  

4	
  

6	
  

8	
  

10	
  

12	
  

120	
  

125	
  

130	
  

135	
  

140	
  

145	
  

150	
  

2,100	
  

2,200	
  

2,300	
  

2,400	
  

2,500	
  

2,600	
  

Thousands	
  

Year	
  and	
  Quarter	
  

Job Market Conditions Remain Weak for Atlanta 

 While Improving for the Nation 

Quarterly	
  Nonfarm	
  Employment	
  

Atlanta	
  	
  MSA	
   Na=on	
  (right	
  	
  axis)	
  

Seasonally	
  Adjusted	
  Data	
  	
  

Source:	
  Bureau	
  of	
  Labor	
  	
  Sta=s=cs	
  

Millions	
  

The Obama Administration's Efforts to Stabilize the Housing Market and Help American Homeowners - November 20

The	
  Atlanta-­‐Sandy	
  Springs-­‐MarieSa,	
  Georgia	
  Metropolitan	
  Sta=s=cal	
  Area	
  (Atlanta	
  MSA)	
  includes	
  28	
  coun=es	
  in	
  northwest	
  Georgia,	
  including	
  the	
  five	
  co

and	
  GwinneS.	
  	
  Although	
  the	
  share	
  of	
  distressed	
  mortgages	
  in	
  the	
  Atlanta	
  MSA	
  has	
  been	
  above	
  the	
  na=onal	
  average	
  since	
  mid-­‐2000,	
  the	
  local	
  foreclosur

na=on	
  as	
  a	
  whole,	
  with	
  	
  delinquencies	
  and	
  defaults	
  rising	
  significantly	
  in	
  2007,	
  as	
  in	
  other	
  regions	
  where	
  there	
  were	
  many	
  high-­‐cost	
  subprime	
  loans	
  .	
  Ho

house	
  price	
  growth	
  than	
  the	
  na=on	
  during	
  the	
  early	
  part	
  of	
  the	
  decade;	
  yet,	
  local	
  home	
  prices	
  have	
  subsequently	
  fallen	
  by	
  nearly	
  as	
  great	
  a	
  percentage	
  

property	
  values	
  in	
  Atlanta	
  and	
  the	
  extent	
  of	
  underwater	
  mortgages	
  in	
  the	
  current	
  market	
  were	
  fueled	
  in	
  part	
  by	
  rising	
  defaults	
  but	
  also	
  by	
  excess	
  housin

increased	
  rental	
  vacancies,	
  caused	
  aggressive	
  home	
  sales	
  pricing,	
  and	
  contributed	
  to	
  eventual	
  price	
  declines.	
  The	
  housing	
  market	
  in	
  Atlanta	
  remains	
  fra

mortgages,	
  deeply-­‐discounted	
  foreclosed	
  proper=es,	
  low	
  property	
  values,	
  and	
  many	
  severely	
  underwater	
  mortgages.	
  	
  However,	
  the	
  Administra=on’s	
  br

market	
  has	
  been	
  a	
  source	
  of	
  real	
  help	
  to	
  homeowners	
  in	
  Atlanta	
  and	
  surrounding	
  ci=es.	
  	
  This	
  addendum	
  to	
  the	
  Administra=on’s	
  housing	
  scorecard	
  prov

the	
  local	
  economy	
  and	
  the	
  impact	
  of	
  the	
  Administra=on’s	
  efforts	
  to	
  stabilize	
  the	
  housing	
  market	
  and	
  help	
  local	
  homeowners.	
  	
  

Population Growth, Employment, and Housing Market: 

The	
  most	
  recent	
  decennial	
  Census	
  popula=on	
  count	
  of	
  5.27	
  million	
  for	
  the	
  Atlanta	
  MSA	
  indicates	
  that	
  the	
  

popula=on	
  increased	
  by	
  an	
  average	
  of	
  approximately	
  102,000	
  people,	
  or	
  2.4percent	
  	
  a	
  year,	
  over	
  the	
  past	
  

decade.	
  During	
  this	
  =me,	
  an	
  average	
  of	
  55,000	
  people	
  a	
  year	
  moved	
  to	
  the	
  area.	
  Migra=on	
  was	
  the	
  most	
  

rapid	
  from	
  2005	
  through	
  2007	
  when	
  an	
  average	
  of	
  62,000	
  jobs	
  a	
  year	
  were	
  added.	
  	
  Popula=on	
  growth	
  

peaked	
  in	
  2006	
  but	
  has	
  since	
  slowed	
  to	
  less	
  than	
  half	
  that	
  level.	
  	
  

From	
  2008	
  through	
  2010,	
  payrolls	
  in	
  the	
  Atlanta	
  MSA	
  declined	
  by	
  194,000	
  jobs	
  from	
  the	
  2007	
  annual	
  peak	
  of	
  2.45	
  million.	
  The	
  area	
  con=nues	
  to	
  lose	
  jobs.	
  Empl

during	
  the	
  third	
  quarter	
  of	
  2011	
  compared	
  to	
  the	
  third	
  quarter	
  of	
  2010.	
  Employment	
  in	
  the	
  na=on	
  increased	
  by	
  1.0	
  percent	
  during	
  the	
  same	
  period.	
  	
  More	
  than

the	
  past	
  year	
  occurred	
  in	
  the	
  financial	
  ac=vi=es	
  sector	
  (11,300)	
  and	
  in	
  construc=on	
  (7,000),	
  primarily	
  as	
  a	
  result	
  of	
  con=nued	
  weakness	
  in	
  the	
  local	
  housing	
  mar

growth	
  in	
  transporta=on	
  and	
  u=li=es	
  (4,400),	
  manufacturing	
  (4,200),	
  and	
  professional	
  and	
  business	
  services	
  (2,200),	
  but	
  were	
  offset	
  by	
  a	
  decline	
  in	
  the	
  governm

related	
  local	
  government	
  job	
  cuts.	
  During	
  the	
  third	
  quarter	
  of	
  2011,	
  the	
  average	
  unemployment	
  rate	
  for	
  the	
  Atlanta	
  MSA	
  was	
  10.1	
  percent,	
  down	
  slightly	
  from	
  1

average	
  unemployment	
  rate	
  during	
  the	
  same	
  period	
  was	
  9.1	
  percent,	
  down	
  from	
  9.6	
  percent.	
  	
  	
  	
  

n the Housing Market in Atlanta-Sandy Springs-Marietta, Georgia

Date Atlanta	
  MSA	
  Population

Annual	
  Growth	
  Rate	
  From	
  

Prior	
  Date

4/1/00 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  4,247,636 -­‐

4/1/10 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  5,268,860 2.4%

Source: Census Bureau (2000 and 2010 Decennial)

Population	
  Has	
  Increased	
  in	
  Atlanta	
  During	
  the	
  Past	
  Decade

0	
  

2	
  

4	
  

6	
  

8	
  

10	
  

12	
  

Unemployment Rate Remains Stubbornly High 

Monthly	
  Unemployment	
  Rate	
  (Percent)	
  

Atlanta	
  MSA	
   Na=on	
  

Seasonally	
  Adjusted	
  Data	
  

Source:	
  Bureau	
  of	
  Labor	
  Sta=s=cs	
  

120	
  

125	
  

130	
  

135	
  

140	
  

145	
  

150	
  

Year	
  and	
  Quarter	
  

Job Market Conditions Remain Weak for Atlanta 

 While Improving for the Nation 

Quarterly	
  Nonfarm	
  Employment	
  

Atlanta	
  	
  MSA	
   Na=on	
  (right	
  	
  axis)	
  

Seasonally	
  Adjusted	
  Data	
  	
  

Source:	
  Bureau	
  of	
  Labor	
  	
  Sta=s=cs	
  

Millions	
  

The Obama Administration's Efforts to Stabilize the Housing Market and Help American Homeowners - November 2011 

ngs-­‐MarieSa,	
  Georgia	
  Metropolitan	
  Sta=s=cal	
  Area	
  (Atlanta	
  MSA)	
  includes	
  28	
  coun=es	
  in	
  northwest	
  Georgia,	
  including	
  the	
  five	
  core	
  coun=es	
  of	
  Clayton,	
  Cobb,	
  DeKalb,	
  Fulton,	
  

h	
  the	
  share	
  of	
  distressed	
  mortgages	
  in	
  the	
  Atlanta	
  MSA	
  has	
  been	
  above	
  the	
  na=onal	
  average	
  since	
  mid-­‐2000,	
  the	
  local	
  foreclosure	
  crisis	
  has	
  generally	
  mirrored	
  that	
  of	
  the	
  

	
  	
  delinquencies	
  and	
  defaults	
  rising	
  significantly	
  in	
  2007,	
  as	
  in	
  other	
  regions	
  where	
  there	
  were	
  many	
  high-­‐cost	
  subprime	
  loans	
  .	
  However,	
  the	
  Atlanta	
  MSA	
  experienced	
  lower	
  

n	
  the	
  na=on	
  during	
  the	
  early	
  part	
  of	
  the	
  decade;	
  yet,	
  local	
  home	
  prices	
  have	
  subsequently	
  fallen	
  by	
  nearly	
  as	
  great	
  a	
  percentage	
  as	
  those	
  for	
  the	
  rest	
  of	
  the	
  na=on.	
  	
  Declining	
  

nta	
  and	
  the	
  extent	
  of	
  underwater	
  mortgages	
  in	
  the	
  current	
  market	
  were	
  fueled	
  in	
  part	
  by	
  rising	
  defaults	
  but	
  also	
  by	
  excess	
  housing	
  construc=on	
  prior	
  to	
  the	
  crisis.	
  	
  The	
  laSer	
  

ies,	
  caused	
  aggressive	
  home	
  sales	
  pricing,	
  and	
  contributed	
  to	
  eventual	
  price	
  declines.	
  The	
  housing	
  market	
  in	
  Atlanta	
  remains	
  fragile	
  -­‐	
  with	
  a	
  high	
  percentage	
  of	
  distressed	
  

ounted	
  foreclosed	
  proper=es,	
  low	
  property	
  values,	
  and	
  many	
  severely	
  underwater	
  mortgages.	
  	
  However,	
  the	
  Administra=on’s	
  broad	
  approach	
  to	
  stabilizing	
  the	
  housing	
  

ce	
  of	
  real	
  help	
  to	
  homeowners	
  in	
  Atlanta	
  and	
  surrounding	
  ci=es.	
  	
  This	
  addendum	
  to	
  the	
  Administra=on’s	
  housing	
  scorecard	
  provides	
  a	
  summary	
  of	
  trends	
  and	
  condi=ons	
  in	
  

the	
  impact	
  of	
  the	
  Administra=on’s	
  efforts	
  to	
  stabilize	
  the	
  housing	
  market	
  and	
  help	
  local	
  homeowners.	
  	
  

mployment, and Housing Market: 

sus	
  popula=on	
  count	
  of	
  5.27	
  million	
  for	
  the	
  Atlanta	
  MSA	
  indicates	
  that	
  the	
  

rage	
  of	
  approximately	
  102,000	
  people,	
  or	
  2.4percent	
  	
  a	
  year,	
  over	
  the	
  past	
  

erage	
  of	
  55,000	
  people	
  a	
  year	
  moved	
  to	
  the	
  area.	
  Migra=on	
  was	
  the	
  most	
  

when	
  an	
  average	
  of	
  62,000	
  jobs	
  a	
  year	
  were	
  added.	
  	
  Popula=on	
  growth	
  

owed	
  to	
  less	
  than	
  half	
  that	
  level.	
  	
  

olls	
  in	
  the	
  Atlanta	
  MSA	
  declined	
  by	
  194,000	
  jobs	
  from	
  the	
  2007	
  annual	
  peak	
  of	
  2.45	
  million.	
  The	
  area	
  con=nues	
  to	
  lose	
  jobs.	
  Employment	
  fell	
  by	
  26,000	
  jobs,	
  or	
  1.1	
  percent,	
  

1	
  compared	
  to	
  the	
  third	
  quarter	
  of	
  2010.	
  Employment	
  in	
  the	
  na=on	
  increased	
  by	
  1.0	
  percent	
  during	
  the	
  same	
  period.	
  	
  More	
  than	
  half	
  of	
  the	
  job	
  losses	
  in	
  the	
  Atlanta	
  MSA	
  over	
  

nancial	
  ac=vi=es	
  sector	
  (11,300)	
  and	
  in	
  construc=on	
  (7,000),	
  primarily	
  as	
  a	
  result	
  of	
  con=nued	
  weakness	
  in	
  the	
  local	
  housing	
  market.	
  	
  Employment	
  sector	
  gains	
  included	
  

=li=es	
  (4,400),	
  manufacturing	
  (4,200),	
  and	
  professional	
  and	
  business	
  services	
  (2,200),	
  but	
  were	
  offset	
  by	
  a	
  decline	
  in	
  the	
  government	
  sector	
  (12,700)	
  as	
  a	
  result	
  of	
  budget-­‐

uts.	
  During	
  the	
  third	
  quarter	
  of	
  2011,	
  the	
  average	
  unemployment	
  rate	
  for	
  the	
  Atlanta	
  MSA	
  was	
  10.1	
  percent,	
  down	
  slightly	
  from	
  10.2	
  percent	
  a	
  year	
  earlier.	
  	
  The	
  na=onal	
  

ring	
  the	
  same	
  period	
  was	
  9.1	
  percent,	
  down	
  from	
  9.6	
  percent.	
  	
  	
  	
  

From 2008 through 2010, Atlanta and surrounding cities lost 

a total of 194,000 jobs —and the area continues to shed jobs. 

While employment in the U.S. increased by 1 percent in the 

third quarter of 2011 from a year earlier, local employment in 

Atlanta fell by 26,000 jobs, or 1.1 percent, during the same 

period. More than half of job losses in the Atlanta MSA over 

the past year were from the fi nancial services sector (11,300) 

and construction (7,000), primarily as a result of continued 
 e Obama Administration’s Eff orts to Stabilize  e Housing Market and Help American Homeowners | November 2011 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

Spotlight on Atlanta MSA | Page 2

weakness in the local housing market. Also, there was a 

decline in government sector jobs (12,700) as a result of 

state and local budget cuts. The local economy added jobs 

in transportation and utilities (4,400), manufacturing (4,200), 

and professional and business services (2,200). The average 

unemployment rate for the Atlanta MSA was 10.1 percent in the 

third quarter of 2011, down slightly from 10.2 percent a year 

earlier. The national average unemployment rate during the 

same period was 9.1 percent, down from 9.6 percent. 

Home sales in the Atlanta MSA remain sluggish, with existing 

home sales on the decline since 2006 and new home sales 

declining since 2005. During the fi rst eight months of 2011, 

existing home sales fell by 13 percent compared to the fi rst 

eight months of 2010, while new home sales fell by 29 percent, 

according to CoreLogic. The high proportion of distressed 

sales, which currently represents 39 percent of all existing home 

sales in the Atlanta market and is well above the national rate 

of 27 percent – has weakened Atlanta home prices overall. 

The CoreLogic repeat-sales house price index shows that home 

prices in Atlanta rose at just one-third the national pace between 

2000 and 2005. Although home prices in Atlanta did not 

infl ate as they did in much of the nation, prices nonetheless 

declined 24 percent from their peak in December 2006 to their 

low in March 2009, nearly as high as the national average 

peak-to-low decline of 31 percent. Home prices in Atlanta 

have shown signs of rebounding since early 2009, but they 

remain at low levels not seen in more than a decade. The 

rental market in Atlanta is showing signs of improvement, but 

like the sales market, it remains fragile. According to Reis Inc., 

the overall apartment vacancy rate in Atlanta was 8.4 percent 

in the third quarter of 2011, down from 10.6 percent a year 

earlier but well above the national average of 5.6 percent. 

During the third quarter of 2011, average rents increased by 2 

percent from a year ago to $860. The average rent nationwide 

increased by 2 percent to $1,060 during the same period. 

Trends in Mortgage 

Delinquencies and Foreclosures: 

Homeowners in Atlanta are still struggling with high levels of 

mortgage delinquency and foreclosure, although conditions have 

improved since February 2010. As of September 2011, the 

Atlanta metro area ranked 73rd out of 366 metropolitan areas 

for the percentage of mortgages at risk of foreclosure (90 or more 

days delinquent or in the process of foreclosure) according to LPS 

Applied Analytics. Through the efforts of numerous state and local 

entities in partnership with the federal government, the number 

of mortgages at risk of foreclosure in the Atlanta area declined 

from approximately 73,500 (8.7 percent of all mortgages) in 

September 2010 to 65,100 (7.5 percent) in September 2011, 

compared with a national decline from 7.3 to 6.9 percent. 

CoreLogic data since 2000 show that the share of mortgages 90 

or more days delinquent, which includes loans in the foreclosure 

process or bank owned, has been consistently higher in Atlanta 

than in the nation. Since its January 2010 high of 10.7 percent, 

the rate of mortgages 90 or more days delinquent has fallen 

to 8.9 percent; national rates declined from 8.5 percent to 

7.2 percent over the same period. Realty Trac data show that 

although the foreclosure rate in Atlanta remains higher than in 

the nation overall, it shows improvement for the most part since 

Spotlight on the Housing Market in Atlanta-Sandy Springs-Marietta, Georgia

80	
  

100	
  

120	
  

140	
  

160	
  

180	
  

200	
  

220	
  

Atlanta Home Prices Declined Sharply After Relatively Modest Rise 

Market Remains Fragile 

Repeat-­‐Sales	
  House	
  Price	
  Index	
  	
  (Jan	
  2000	
  =	
  100)	
  

Atlanta	
  MSA	
   NaCon	
   Source:	
  CoreLogic	
  

5.0	
  

6.0	
  

7.0	
  

8.0	
  

9.0	
  

10.0	
  

11.0	
  

12.0	
  

13.0	
  

Year	
  and	
  Quarter	
  

Rental Vacancy Rates Consistently Higher an Nation 

Quarterly	
  Apartment	
  Rental	
  Vacancy	
  Rates	
  (Percent)	
  

Atlanta	
  MSA	
   NaCon	
   Source:	
  Reis	
  Inc.	
  

Share of Distressed Mortgages 

 Higher an the Nation, But Declining 

Mortgages	
  90+	
  Days	
  Delinquent	
  (Percent	
  of	
  All	
  AcCve	
  Mortgages)	
  

een	
  on	
  the	
  decline	
  since	
  2006	
  and	
  new	
  

011,	
  exisCng	
  home	
  sales	
  fell	
  by	
  13	
  

	
  sales	
  fell	
  by	
  29	
  percent,	
  according	
  to	
  

rrently	
  represent	
  39	
  percent	
  of	
  all	
  

al	
  rate	
  of	
  27	
  percent.	
  The	
  high	
  proporCon	
  

Logic	
  repeat-­‐sales	
  house	
  price	
  index	
  

etween	
  2000	
  and	
  2005.	
  Although	
  home	
  

	
  of	
  the	
  naCon,	
  prices	
  nonetheless	
  

March	
  2009,	
  nearly	
  as	
  high	
  as	
  the	
  naConal	
  

e	
  shown	
  signs	
  of	
  rebounding	
  since	
  early	
  

anta	
  is	
  showing	
  signs	
  of	
  improvement,	
  

erall	
  apartment	
  vacancy	
  rate	
  in	
  Atlanta	
  

	
  year	
  earlier	
  but	
  well	
  above	
  the	
  naConal	
  

	
  increased	
  by	
  2	
  percent	
  from	
  a	
  year	
  ago	
  

	
  during	
  the	
  same	
  period.	
  	
  	
  	
  

linquency	
  and	
  foreclosure,	
  although	
  

d	
  73	
  out	
  of	
  366	
  metropolitan	
  areas	
  for	
  

quent	
  or	
  in	
  the	
  process	
  of	
  foreclosure)	
  

	
  and	
  local	
  enCCes	
  in	
  partnership	
  with	
  the	
  

	
  Atlanta	
  area	
  declined	
  from	
  

	
  65,100	
  (7.5	
  percent)	
  in	
  September	
  2011,	
  

since	
  2000	
  show	
  that	
  the	
  share	
  of	
  

higher	
  in	
  Atlanta	
  than	
  in	
  the	
  naCon.	
  	
  

tes	
  have	
  fallen	
  to	
  8.9	
  percent.	
  This	
  

	
  same	
  period. Realty	
  Trac	
  data	
  show	
  that	
  

	
  has	
  improved.	
  Completed	
  foreclosures	
  

during	
  the	
  first	
  nine	
  months	
  of	
  2011,	
  

ns	
  locally	
  and	
  naConally.	
  	
  CoreLogic	
  

egaCve	
  equity	
  compared	
  with	
  23	
  percent	
  

risk.	
  	
  

Spotlight on the Housing Market in Atlanta-Sandy Springs-Marietta, Georgia

80	
  

100	
  

120	
  

140	
  

160	
  

180	
  

200	
  

220	
  

Atlanta Home Prices Declined Sharply After Relatively Modest Rise 

Market Remains Fragile 

Repeat-­‐Sales	
  House	
  Price	
  Index	
  	
  (Jan	
  2000	
  =	
  100)	
  

Atlanta	
  MSA	
   NaCon	
   Source:	
  CoreLogic	
  

5.0	
  

6.0	
  

7.0	
  

8.0	
  

9.0	
  

10.0	
  

11.0	
  

12.0	
  

13.0	
  

Year	
  and	
  Quarter	
  

Rental Vacancy Rates Consistently Higher an Nation 

Quarterly	
  Apartment	
  Rental	
  Vacancy	
  Rates	
  (Percent)	
  

Atlanta	
  MSA	
   NaCon	
   Source:	
  Reis	
  Inc.	
  

Share of Distressed Mortgages 

 Higher an the Nation, But Declining 

Mortgages90+DaysDelinquent(PercentofAllAcCveMortgages)

	
  been	
  on	
  the	
  decline	
  since	
  2006	
  and	
  new	
  

f	
  2011,	
  exisCng	
  home	
  sales	
  fell	
  by	
  13	
  

me	
  sales	
  fell	
  by	
  29	
  percent,	
  according	
  to	
  

currently	
  represent	
  39	
  percent	
  of	
  all	
  

onal	
  rate	
  of	
  27	
  percent.	
  The	
  high	
  proporCon	
  

reLogic	
  repeat-­‐sales	
  house	
  price	
  index	
  

	
  between	
  2000	
  and	
  2005.	
  Although	
  home	
  

ch	
  of	
  the	
  naCon,	
  prices	
  nonetheless	
  

	
  March	
  2009,	
  nearly	
  as	
  high	
  as	
  the	
  naConal	
  

ave	
  shown	
  signs	
  of	
  rebounding	
  since	
  early	
  

Atlanta	
  is	
  showing	
  signs	
  of	
  improvement,	
  

overall	
  apartment	
  vacancy	
  rate	
  in	
  Atlanta	
  

	
  a	
  year	
  earlier	
  but	
  well	
  above	
  the	
  naConal	
  

ts	
  increased	
  by	
  2	
  percent	
  from	
  a	
  year	
  ago	
  

60	
  during	
  the	
  same	
  period.	
  	
  	
  	
  

delinquency	
  and	
  foreclosure,	
  although	
  

ked	
  73	
  out	
  of	
  366	
  metropolitan	
  areas	
  for	
  

nquent	
  or	
  in	
  the	
  process	
  of	
  foreclosure)	
  

te	
  and	
  local	
  enCCes	
  in	
  partnership	
  with	
  the	
  

he	
  Atlanta	
  area	
  declined	
  from	
  

	
  to	
  65,100	
  (7.5	
  percent)	
  in	
  September	
  2011,	
  

a	
  since	
  2000	
  show	
  that	
  the	
  share	
  of	
  

y	
  higher	
  in	
  Atlanta	
  than	
  in	
  the	
  naCon.	
  	
  

rates	
  have	
  fallen	
  to	
  8.9	
  percent.	
  This	
  

he	
  same	
  period. Realty	
  Trac	
  data	
  show	
  that	
  

so	
  has	
  improved.	
  Completed	
  foreclosures	
  

00	
  during	
  the	
  first	
  nine	
  months	
  of	
  2011,	
  

ons	
  locally	
  and	
  naConally.	
  	
  CoreLogic	
  

n	
  negaCve	
  equity	
  compared	
  with	
  23	
  percent	
  

t	
  risk.	
  	
  

Atlanta	
  MSA	
   	
  	
  	
  	
  

Nation	
   	
  	
  	
  	
  

Note:	
  	
  Foreclosure	
  Rate

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Data	
  through	
  S

Source:	
  Realty	
  Trac	
  and

Fo

Area

0	
  

1,000	
  

2,000	
  

3,000	
  

4,000	
  

5,000	
  

6,000	
  

7,000	
  

8,000	
  

0	
  

20,000	
  

40,000	
  

60,000	
  

80,000	
  

100,000	
  

120,000	
  

140,000	
  

160,000	
  

2003	
   2004	
   2005	
   2006	
   2007	
   2008	
   2009	
   2010	
  

New and Existing Home Sales: 

Atlanta Compared to the Nation 

Annual	
  Home	
  Sales	
  (thousands)	
  	
  

NaCon:	
  ExisCng	
  Sales	
  (right	
  axis)	
   NaCon:	
  New	
  Sales	
  (right	
  axis)	
  

Atlanta	
  MSA:	
  ExisCng	
  	
  Sales	
   Atlanta	
  MSA:	
  New	
  	
  Sales	
  

Sources:	
  CoreLogic,	
  HUD/Census	
  	
  Bureau,	
  and	
  NaConal	
  AssociaCon	
  of	
  Realtors	
  

reports	
  that	
  35	
  percent	
  of	
  mortgages	
  in	
  the	
  Atlanta	
  MSA	
  are	
  currently	
  in	
  negaCve	
  equity	
  compared	
  with	
  23	
  percent	
  

naConally	
  -­‐	
  represenCng	
  addiConal	
  homeowners	
  and	
  loans	
  potenCally	
  at	
  risk.	
  	
  
 e Obama Administration’s Eff orts to Stabilize  e Housing Market and Help American Homeowners | November 2011 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

Spotlight on Atlanta MSA | Page 3

the third quarter of 2010. Foreclosure completions declined 

from 30,400 during the fi rst nine months of 2010 to 27,700 

during the fi rst nine months of 2011, although lender process 

reviews continue to affect foreclosure completions locally and 

nationally. CoreLogic reports that 35 percent of mortgages in 

the Atlanta MSA are currently underwater – compared to 22 

percent nationally - representing additional homeowners and 

loans potentially at risk. 

 Springs-Marietta, Georgia

0	
  

20	
  

40	
  

60	
  

80	
  

100	
  

120	
  

140	
  

160	
  

Mortgage Aid Extended More an 135,000 Times 

to Mitigate Rising Foreclosures 

Atlanta	
  MSA:	
  Cumula3ve	
  Offers	
  of	
  Aid	
  by	
  Source	
  Compared	
  with	
  	
  

Foreclosures	
  Since	
  April	
  1,	
  2009	
  	
  (Thousands)	
  

FHA	
  Loss	
  Mi3ga3on	
   Hamp	
  Modifica3ons	
   Es3mated	
  Hope	
  Now	
  Modifica3ons	
   Foreclosure	
  Comple3ons	
  

Note:	
  	
  Data	
  on	
  HOPE	
  Now	
  proprietary	
  mortgage	
  modifica3ons	
  are	
  not	
  available	
  at	
  metropolitan	
  area	
  level.	
  

However,	
  HOPE	
  Now	
  Alliance	
  reports	
  102,300	
  non-­‐HAMP	
  modifica3ons	
  since	
  April	
  1,	
  2009	
  in	
  the	
  state	
  of	
  GA	
  of	
  

which	
  21	
  percent	
  are	
  es3mated	
  by	
  HUD	
  to	
  have	
  occurred	
  in	
  the	
  Atlanta	
  MSA.	
  

Sources:	
  	
  Departments	
  of	
  HUD	
  and	
  Treasury,	
  HOPE	
  Now	
  Alliance,	
  and	
  Realty	
  Trac.	
  

Mortgage	
  Aid	
  Offers	
  in	
  Atlanta	
  MSA	
  from	
  April	
  2009	
  through	
  September	
  2011:	
  135,800	
  

Foreclosure	
  Comple3ons	
  Over	
  Same	
  Period:	
  92,800	
  

DeKalb	
  County	
  has	
  not	
  only	
  brought	
  new	
  life	
  to	
  once	
  vacant	
  proper3es,	
  but	
  has	
  

rket	
  sales	
  crea3ng	
  a	
  “spillover”	
  effect	
  that	
  is	
  helping	
  to	
  stabilize	
  communi3es,	
  protect	
  

her	
  erosion	
  of	
  household	
  wealth,	
  s3mulate	
  lending,	
  and	
  acract	
  private	
  investment	
  to	
  

	
  a	
  comprehensive	
  strategy	
  to	
  partner	
  with	
  others	
  and	
  build	
  a	
  stronger,	
  more	
  sustainable	
  

e	
  used	
  to	
  rehabilitate	
  Cedar	
  Pines	
  Apartments,	
  a	
  blighted	
  168	
  unit	
  apartment	
  complex.	
  	
  

standard	
  apartment	
  complex	
  and	
  turned	
  it	
  into	
  a	
  highly	
  desirable	
  residen3al	
  community.	
  	
  

located	
  near	
  local	
  transporta3on	
  and	
  other	
  ameni3es.	
  	
  More	
  than	
  half	
  of	
  the	
  units	
  are	
  

comes	
  at	
  or	
  below	
  50	
  percent	
  of	
  AMI.	
  	
  

ed	
  NSP	
  funds	
  to	
  purchase	
  15	
  unfinished	
  homes	
  in	
  Avington	
  Glenn,	
  a	
  subdivision	
  

s	
  before	
  comple3on.	
  	
  The	
  comple3on	
  of	
  the	
  homes	
  revitalized	
  the	
  neighborhood	
  and	
  

	
  prices	
  in	
  the	
  area.	
  	
  Nine	
  of	
  the	
  homes	
  have	
  been	
  sold	
  to	
  eligible	
  homebuyers.	
  

olders	
  from	
  across	
  the	
  Atlanta	
  area	
  organized	
  an	
  innova3ve	
  local	
  foreclosure	
  response	
  

(PBP)	
  ini3a3ve which	
  harnesses	
  the	
  collec3ve	
  forces	
  of	
  more	
  than	
  140	
  public	
  and	
  

working	
  to	
  prevent	
  foreclosures	
  from	
  occurring	
  and	
  to	
  reoccupy	
  vacant	
  and	
  abandoned	
  

na3onal	
  organiza3ons	
  make	
  up	
  the	
  PBP	
  leadership	
  team,	
  which	
  include	
  the	
  Atlanta	
  

t	
  Partnership	
  (ANDP),	
  the	
  Atlanta	
  Regional	
  Commission	
  (ARC),	
  CredAbility,	
  Enterprise	
  

deral	
  Reserve	
  Bank	
  of	
  Atlanta,	
  the	
  Greater	
  Atlanta	
  Home	
  Builders	
  Associa3on,	
  the	
  Home	
  

onal	
  Housing	
  Conference,	
  and	
  NeighborWorks	
  America.	
  	
  The	
  HUD	
  Atlanta	
  field	
  office	
  has	
  

e	
  leadership	
  team	
  from	
  the	
  earliest	
  stages	
  of	
  the	
  ini3a3ve.	
  Coordina3on	
  and	
  staff	
  

by	
  ANDP.	
  	
  	
  Examples	
  of	
  PBP	
  ac3vi3es	
  include:	
  

	
  ARC,	
  the	
  top	
  leadership	
  from	
  five	
  Atlanta	
  area	
  coun3es	
  -­‐-­‐	
  Clayton,	
  DeKalb,	
  Fulton,	
  

par3cipated	
  in	
  a	
  roundtable	
  discussion	
  of	
  county-­‐based	
  solu3ons	
  and	
  best	
  prac3ces	
  in	
  

e	
  of	
  which	
  are	
  funded	
  through	
  the	
  Administra3on’s	
  NSP	
  program.	
  	
  Local	
  NSP	
  managers	
  

	
  from	
  across	
  the	
  region	
  meet	
  monthly	
  at	
  ARC	
  and	
  via	
  web-­‐conferencing	
  to	
  collaborate	
  on	
  

mi3ga3on	
  challenges	
  and	
  opportuni3es.	
  

Atlanta MSA NSP Acti vity (Housing Units) Projected Completed

NSP1 Total 957 511

Clearance and demoliti on 16 16

Constructi on of new housing 41 0

Homeownership assistance to low- and 

moderate-income 167 99

Rehabilitati on/reconstructi on of 

residenti al structures 733 396

NSP3 Total 1220 0

Clearance and demoliti on 12 0

Homeownership assistance to low- and 

moderate-income 992 0

Rehabilitati on/reconstructi on of 

residenti al structures 216 0

by members from both the public and private sectors with the assistance of the local and 

regional HUD offi ces, has also helped residents avoid foreclosure.

Given over three rounds, the Neighborhood Stabilization Program

has invested $7 billion nationwide to help localities work with non-profi ts and 

community development corporations to turn tens of thousands of abandoned and 

foreclosed homes that lower property values into homeownership opportunities 

and the affordable rental housing that communities need. In addition to stabilizing 

neighborhoods and providing affordable housing, NSP funds have helped save jobs. 

Each home purchased, rehabbed and sold through the NSP program is the result of 

the efforts of 35 to 50 local employees.

Overall, a total of $91.2 million has been awarded to seven grantees in the Atlanta 

MSA: the City of Atlanta and the counties of Cobb, Clayton, DeKalb, Fulton, 

Gwinnett, and Paulding. The jurisdictions received $68.3 million in NSP1 funds 

and $22.9 million in NSP3 funds. The State of Georgia has also received $97.0 

million in NSP funds to be used across the state for neighborhood stabilization. 

Approximately 511 households have already benefi ted from NSP, and activities 

funded by the program are expected to provide assistance to an additional 2,177 

owner and renter households. Here are some examples of how these funds have 

been put to use:

Foreclosure Completi on Rates in the Atlanta MSA

Area

Third Quarter 2011 Since April 1, 2009

Foreclosure 

Completi ons

Foreclosure 

Rate

Foreclosure

Completi ons

Foreclosure 

Rate

Atlanta 

MSA 11,100 0.5% 92,800 4.3%

Nati on 196,500 0.2% 2,332,100 1.8%

Note: Foreclosure Rates as Percent of All Housing Units; Data through 

September 2011 for Foreclosures since 2009

Source: Realty Trac and Census Bureau

Foreclosure	
  

Completions

Foreclosure	
  

Rate

Foreclosure	
  

Completions

Foreclosure	
  

Rate

Atlanta	
  MSA	
   	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  11,100	
   0.5% 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  92,800	
   4.3%

Nation	
   	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  196,500	
   0.2% 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  2,332,100	
   1.8%

Note:	
  	
  Foreclosure	
  Rates	
  as	
  Percent	
  of	
  All	
  Housing	
  Units;

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Data	
  through	
  September	
  2011	
  for	
  Foreclosures	
  since	
  2009

Source:	
  Realty	
  Trac	
  and	
  Census	
  Bureau

Foreclosure	
  Completion	
  Rates	
  in	
  the	
  Atlanta	
  MSA

Third	
  Quarter	
  2011 Since	
  April	
  1,	
  2009

Area

0	
  

1,000	
  

2,000	
  

3,000	
  

4,000	
  

5,000	
  

6,000	
  

7,000	
  

8,000	
  

2010	
  

right	
  axis)	
  

Sales	
  

5.0	
  

6.0	
  

7.0	
  

8.0	
  

Year	
  and	
  Quarter	
  

Atlanta	
  MSA	
   NaCon	
   Source:	
  Reis	
  Inc.	
  

0	
  

2	
  

4	
  

6	
  

8	
  

10	
  

12	
  

Atlanta	
  MSA	
   NaCon	
  

Source:	
  CoreLogic	
  

Share of Distressed Mortgages 

 Higher an the Nation, But Declining 

Mortgages	
  90+	
  Days	
  Delinquent	
  (Percent	
  of	
  All	
  AcCve	
  Mortgages)	
  

hough	
  

areas	
  for	
  

closure)	
  

ip	
  with	
  the	
  

mber	
  2011,	
  

e	
  of	
  

aCon.	
  	
  

	
  This	
  

a	
  show	
  that	
  

eclosures	
  

f	
  2011,	
  

Logic	
  

	
  23	
  percent	
  

 e Administration’s Eff orts to 

Stabilize the Atlanta Housing 

Market: 

From the launch of the Administration’s assistance programs 

in April 2009 through the end of September 2011, 

approximately 135,800 mortgage assistance interventions 

have been offered to homeowners in the Atlanta metropolitan 

area. More than 114,300 interventions were offered 

through the Home Affordable Modifi cation Program (HAMP) 

and the Federal Housing Administration (FHA) loss mitigation 

and early delinquency intervention programs. An estimated 

additional 21,500 proprietary modifi cations have been 

offered through HOPE Now Alliance servicers. While some 

homeowners may have received help from more than one 

program, the number of times assistance has been offered 

is nearly one and one-half times the number of foreclosures 

completed during this period (92,800) in the Atlanta MSA. 

In addition to offers of mortgage aid to homeowners, the 

Administration’s Neighborhood Stabilization Program (NSP) 

and Hardest Hit Fund have helped to stabilize the Atlanta 

housing market. Piece by Piece, a local initiative organized 
 e Obama Administration’s Eff orts to Stabilize  e Housing Market and Help American Homeowners | November 2011 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

Spotlight on Atlanta MSA | Page 4

• NSP funds in the Atlanta MSA provided the opportunity for more 

than 180 female heads of household to purchase homes with an 

affordable mortgage if their income was at or below 50 percent of 

area median income (AMI).

• The City of Atlanta secured a $600,000 grant from the Green 

Home Advantage Program via Enterprise Community Partners and 

The Home Depot Foundation to improve air quality and reduce 

water and energy consumption in NSP homes. Buyers of green 

designated homes can save more than a third on utility expenses. 

Another innovative NSP program used green rehab practices 

developed by South Face and Enterprise Community Partners to 

lower utility costs. Money netted from home sales are being recirculated back into the construction of other NSP eligible activities. 

• The City of Atlanta, in partnership with developers and other 

fi rms, leveraged $2.8 million to acquire and rehabilitate or 

demolish 265 units. Twenty-two blighted units were removed and 

48 units have been rehabilitated so far. Twenty of the properties 

have been sold to homeowners and 22 have been rented to income 

eligible households. In some cases, NSP fi nancing was provided 

towards the purchase of these foreclosed properties.

• The sale of NSP homes in DeKalb County has not only brought 

new life to once vacant properties, but has introduced higher-value 

market sales creating a “spillover” effect that is helping to stabilize 

communities, protect existing residents from further erosion of 

household wealth, stimulate lending, and attract private investment 

to these neighborhoods. 

• In Cobb County, as part of a comprehensive strategy to partner 

with others and build a stronger, more sustainable community, NSP 

funds were used to rehabilitate Cedar Pines Apartments, a blighted 

168 unit apartment complex. The project revitalized a substandard 

apartment complex and turned it into a highly desirable residential 

community. The complex is strategically located near local 

transportation and other amenities. More than half of the units are 

available for people with incomes at or below 50 percent of AMI. 

• The County of Gwinnet used NSP funds to purchase 15 

unfi nished homes in Avington Glenn, a subdivision abandoned by 

its developers before completion. The completion of the homes 

revitalized the neighborhood and slowed the decline of home 

prices in the area. Nine of the homes have already been sold to 

eligible homebuyers.

 In late 2010, more than 400 public and private sector housing 

stakeholders representing 140 agencies from across the Atlanta 

area organized an innovative local foreclosure response program, 

the Piece by Piece (PBP) initiative, which harnesses their 

collective forces to prevent foreclosures and to help reoccupy 

vacant and abandoned homes. The PBP leadership team includes 

local, regional, and national organizations such as the Atlanta 

Neighborhood Development Partnership, the Atlanta Regional 

Commission, CredAbility, Enterprise Community Partners, the 

Federal Reserve Bank of Atlanta, the Greater Atlanta Home Builders 

Association, the Home Depot Foundation, the National Housing 

Conference, and NeighborWorks America. The HUD Atlanta 

Regional Offi ce has worked very closely with the leadership team 

from the earliest stages of the initiative to develop benchmarks of 

accountability. The Piece by Piece initiative has yielded major 

success in the local housing market:

• Elevating local solutions to help heal the Atlanta 

metro market. Under the coordination of the Atlanta Regional 

Commission, the top leadership from fi ve Atlanta area counties 

-- Clayton, DeKalb, Fulton, Gwinnett, and Rockdale -- 

participated in a roundtable discussion of county-based solutions 

and best practices in addressing foreclosure, some of which are 

funded through the Administration’s NSP program. Local NSP 

managers and other government staff from across the region 

meet monthly at the Atlanta Regional Commission and via webconferencing to collaborate on a wide range of foreclosure 

mitigation challenges and opportunities.

• Putting vacant homes back into positive use. Under the 

leadership of the Westside Home Builders Association, Douglas 

County has implemented a local initiative to rehabilitate and sell 

foreclosed homes in the county. The Douglas County Initiative 

engages local home builders for the rehabilitation work, local real 

estate professionals for the sale transactions, and local lenders for 

mortgage lending products which are critical to the survivability of 

the local homebuilding industry. In addition, PBP partners jointly 

sponsored an information session for more than 150 housing 

professionals on mortgage lending products such as HUD’s Section 

203(k) which can help homebuyers or investors fi nance the purchase 

and rehabilitation of foreclosed homes. 

As part of the State of Georgia’s housing recovery efforts, the 

HomeSafe Georgia program was launched on April 1, 2011 to help 

approximately 18,000 Georgia homeowners who have experienced 

a substantial decrease in income due to job loss or underemployment, 

by providing a mortgage payment bridge while they seek new or better 

employment. HomeSafe Georgia is funded by a $339 million grant 

from the Administration’s Hardest Hit Fund and administered by the 

Georgia Department of Community Affairs (DCA) under contract with the 

Georgia Housing and Finance Authority’s GHFA Affordable Housing, Inc. 

Assistance is provided in one of two ways: 

Mortgage Payment Assistance: Under this program, the 

homeowner’s monthly mortgage payment is paid directly to the lender 

for up to 18 months. The homeowner’s household income is reviewed 

to determine the level of assistance needed and the minimum mortgage 

payment that may be contributed by the borrower. Eligible homeowners 

close on a 0 percent interest rate subordinate loan similar to a home 

equity line of credit. Following the assistance period, the loan will be 

forgiven at a rate of 20% per year for fi ve years. 

Reinstatement Assistance: Under the Reinstatement Assistance 

program, a one-time payment is made to the lender to cover up to 6 

months of missed mortgage payments and lender fees.

To date, more than 80 mortgage servicers have agreed to participate 

in at least one of the Home Safe programs. Georgia homeowners 

who believe they may be eligible for these programs should visit 

www.homesafegeorgia.com. Georgia has these funds available 

until 2017 or until all funds are expended to help struggling homeowners 

and prevent avoidable foreclosures.