View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

U.S Department of Housing and Urban Development
U.S. Department of the Treasury

Spotlight on the Housing

Market in Atlanta-Sandy
Springs-Marietta, Georgia

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

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	
  frag
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.	
  	
  
	
  

U.S. Department of Housing and Urban Housing Market and Policy Development and Research
The Obama Administration’s Efforts to Stabilize TheDevelopment | Office of Help American Homeowners | November 2011
Population Growth, Employment, and Housing Market:

The Atlanta-Sandy Springs-Marietta, Georgia Metropolitan Statistical Area (Atlanta MSA) includes five core counties (Clayton, Cobb, DeKalb, Fulton,
	
  
Population	
  Has	
  I days
The	
   Although the share popula=on	
  count	
  o 5.27	
  million	
  for	
   in tlanta	
   around Atlanta
and Gwinnett) and 23 other counties in northwest Georgia. most	
  recent	
  decennial	
  Census	
  of distressed f	
  mortgagesthe	
  Aand MSA	
  indicates	
  that	
  the	
   – those 90 or morencreased	
  in	
  Atlanta	
  Dur
popula=on	
  increased	
  by	
  an	
  average	
  of	
  approximately	
  102,000	
  people,	
  or	
  2.4percent	
  	
  a	
  year,	
  over	
  the	
  past	
  
delinquent, in foreclosure, or bank owned – has been above theuring	
  this	
  =me,	
  average f	
  55,000	
  pmid-2000, theo	
  local foreclosurethe	
  most	
   has generally mirrored
national an	
  average	
  o since eople	
  a	
  year	
  moved	
  t the	
  area.	
  Migra=on	
  was	
   crisis
decade.	
  D
Date
rapid	
  from	
  2005	
   and 2007	
  when	
   n	
  average	
   f	
  62,000	
  jobs	
   year	
  were	
  added.	
  	
  Popula=on	
  growth	
  
that of the nation as a whole, with a significant rise in delinquencies through	
  defaults aamong osubprimea	
  loans beginning in 2007. During the4/1/00 part 	
  Atlanta	
  	
  M	
  SA	
  	
  	
  P	
  opulation
early
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
   	
  	
  	
   	
  	
  	
  	
   	
   	
  4,247,63
peaked	
  in	
  2
of the decade, local home prices grew at a slower pace than the006	
  but	
  has	
  since	
  slowed	
  to	
  less	
  than	
  half	
  that	
  level.	
  	
   prices in the MSA have since fallen 4/1/10
national average; however, home
by nearly as	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  5,268,86
	
  	
  	
  
	
  
Source: Census Bureau (2000 and
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 2010 Decennial)
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
n the Housing Market in Atlanta-Sandydeclines. The housingGeorgia through	
  2010,	
  payrolls	
  in	
  the	
  Atlanta	
  MSA	
  declined	
  by	
  194,000	
  jobs	
  from	
  the	
  of distressedomortgages, deeply- to	
  lose	
  jobs.	
  Empl
and contributed to eventual price Springs-Marietta, market in Atlanta remains fragile - with a high percentage 2007	
  annual	
  peak	
   f	
  2.45	
  million.	
  The	
  area	
  con=nues	
  
From	
  2008	
  
during	
  the	
  t severely 2011	
  compared	
   mortgages. f	
  2010.	
  Employment	
  in	
  the	
  na=on	
  increased	
  by	
   remains a barrier
discounted foreclosed properties, low property values, and manyhird	
  quarter	
  of	
  underwaterto	
  the	
  third	
  quarter	
  oAccess to available credit also 1.0	
  percent	
  during	
  the	
  same	
  period.	
  	
  More	
  than
the	
  past	
  y November 2011
t
The Obama Administration's and existing homeowners. However, the Administration’s broad financial	
  ac=vi=es	
  sector	
  (11,300)	
  and	
  in	
  construc=on	
  (7,000),	
  primarily	
  as	
  been of	
  csourceweakness	
  in	
  the	
  local	
  housing	
  mark
for potential Efforts to Stabilize the Housing Market and Help American Homeownersin	
  ear	
  occurred	
  in	
  ahe	
   uapproach manufacturing	
  (4,200),	
  and	
  professional	
  and	
  business	
  services	
  (2,200),	
  but	
  were	
  offset	
  by	
  a	
  decline	
  in	
  the	
  governm
to stabilizing the housing market has a	
  result	
   a on=nued	
   of real
growth	
   transporta=on	
   nd	
   =li=es	
  (4,400),	
  
ngs-­‐MarieSa,	
  Georgia	
  Mto homeowners rea	
  (Atlanta	
  MSA)	
  includes	
  28	
  coun=es	
  in	
  northwest	
  Georgia,	
  including	
  the	
  five	
  to the uts.	
  During	
  the	
  third	
  quarter	
  of	
  2011,	
  the	
  average	
  unemployment	
  rate	
  for	
  the	
  Atlanta	
  MSA	
  was	
  10.1	
  percent,	
  down	
  slightly	
  from	
  1
ta=s=cal	
  A in
Cobb,	
  D
ulton,	
  
related	
  l
j coun=es	
  
help etropolitan	
  Sin	
  the	
  Atlanta	
  MAtlanta and surrounding cities. id-­‐2000,	
  addendum core	
  ob	
  c has	
  gof	
  Clayton,	
  irrored	
  teKalb,	
  tFhe	
   Housing Scorecard provides a summary of
This the	
  ocal	
  gfovernment	
  crisis	
   Obama Administration’s
h	
  the	
  share	
  of	
  distressed	
  mortgages	
  
SA	
  has	
  been	
  above	
  the	
  na=onal	
  average	
  since	
  m
local	
   oreclosure	
  
enerally	
  m
hat	
  of	
  
average	
  unemployment	
  rate	
  during	
  
trends and conditions2in thein	
  local egions	
  where	
  there	
  were	
  many	
  high-­‐cost	
  subprime	
  loans	
  .	
  However,	
  the	
  Attlanta	
  MSA	
  eto stabilize the own	
  from	
  9.6	
  market	
  	
   and help local homeowners.
economy and the impact of the Administration’she	
  same	
  period	
  was	
  9.1	
  lpercent,	
  d housing percent.	
  	
  
efforts xperienced	
   ower	
  
	
  	
  delinquencies	
  and	
  defaults	
  rising	
  significantly	
  in	
   007,	
  as	
   other	
  r
	
  

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.	
  	
  
Job Market Conditions Remain Weak for Atlanta

Population Growth, Employment,
and Housing Market:

While Improving for the Nation
Quarterly	
  Nonfarm	
  Employment	
  

According to the most recent Census, the Atlanta MSA has a
2,600	
  
population of 5.27
mployment, and Housing Market: million which has increased by an average
2,500	
  
of approximately 102,000 people (2.4 percent) Population	
  Has	
  Increased	
  in	
  Atlanta	
  During	
  the	
  Past	
  Decade
each year
sus	
  popula=on	
  count	
  of	
  5.27	
  million	
  for	
  the	
  Atlanta	
  MSA	
  indicates	
  that	
  the	
  
since 2000 – including an average of 55,000 new residents
rage	
  of	
  approximately	
  102,000	
  people,	
  or	
  2.4percent	
  	
  a	
  year,	
  over	
  the	
  past	
  
2,400	
  
Annual	
  Growth	
  Rate	
  From	
  
erage	
  of	
  55,000	
  people	
  a	
  year	
  moved	
  the area. igra=on	
  was	
  the	
  was the most rapid between
that moved to to	
  the	
  area.	
  M Migration most	
  
Date
Atlanta	
  MSA	
  Population
Prior	
  Date
when	
  an	
  average	
  of	
  62,000	
  jobs	
  a	
  year	
  were	
  added.	
  	
  Popula=on	
  growth	
  
-­‐
4/1/00
	
  	
  	
  	
  	
  	
  	
  	
  
2005 and 2007 when an average of 62,000 jobs a year were	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  4,247,636
2,300	
  
owed	
  to	
  less	
  than	
  half	
  that	
  level.	
  	
  
4/1/10
2.4%
added. Population growth peaked at 160,000 Census Bureau (2000 and	
  	
  2010	
  	
  Decennial)
in 2006 but 	
  	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  5,268,860
Source:
2,200	
  
has since slowed to less than half that level. Household growth
averaged 2.5 percent annually between 2000 and 2010,
2,100	
  
olls	
  in	
  the	
  Atlanta	
  MSA	
  declined	
  by	
  194,000	
  jobs	
  from	
  the	
  growth at eak	
  of	
  2.45	
  million.	
  The	
  area	
  con=nues	
  to	
  lose	
  jobs.	
  Employment	
  fell	
  by	
  26,000	
  jobs,	
  or	
  1.1	
  percent,	
  
but net annual housing unit 2007	
  annual	
  p 3.2 percent exceeded
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	
  
corresponding population and household growth rates.
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	
   Year	
  and	
  Quarter	
  
Household Growth During the Past Decade

Date of Census

4/1/2000

Atlanta MSA Population

4,247,636

1,937,225
2.5%

130	
  
125	
  
120	
  

Na=on	
  (right	
  	
  axis)	
  

1,644,572

Annual Growth Rate

-

Unemployment Rate Remains Stubbornly High
Monthly	
  Unemployment	
  Rate	
  (Percent)	
  

150	
  

3.2%
145	
  

	
  

12	
  
10	
  

2,165,495

Source: Census Bureau (2000 and 2010 Decennial) with 2000 Data Adjusted to
140	
  
Reflect 2010 MSA Definition.
135	
  
130	
  

Millions	
  

Atlanta MSA Housing Units

2.4%

From 2008 through 2010, Atlanta and surrounding cities lost
a total of 194,000 jobs —and the area continues to shed jobs.
125	
  
While employment in the U.S. increased by 1 percent in the
120	
  
third quarter of 2011 from a year earlier, local employment in
Atlanta fell by 26,000 jobs, or 1.1 percent, during the same
Year	
  and	
  Quarter	
  
period. More than half of job losses in the Atlanta MSA over
Atlanta	
  	
  MSA	
  
Na=on	
  (right	
  	
  axis)	
  
the past year were from the financial services sector (11,300)
Seasonally	
  Adjusted	
  Data	
  	
  
and 	
  construction (7,000), primarily as a result of continued
Source:	
  Bureau	
  of	
  Labor	
   Sta=s=cs	
  

	
  

8	
  
6	
  
4	
  
2	
  
0	
  

	
  
Seasonally	
  Adjusted	
  Data	
  
Source:	
  Bureau	
  of	
  Labor	
  Sta=s=cs	
  

Spotlight on Atlanta MSA | Page 1

Atlanta	
  MSA	
  

Na=on	
  

Millions	
  

135	
  

5,268,860

Annual Growth Rate
Job Market Conditions Remain Weak for Atlanta
Atlanta MSA Households
1,554,154
While Improving for the Nation
Annual Growth Rate Employment	
  
Quarterly	
  Nonfarm	
  

10	
  

140	
  

Source:	
  Bureau	
  of	
  Labor	
  	
  Sta=s=cs	
  
	
  

4/1/2010

12	
  

145	
  

Thousands	
  

=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	
  nAtlanta	
  	
  MSA	
  
a=onal	
  
Atlanta Housing Unit Growth
uring	
  the	
  same	
  period	
  was	
  9.1	
  percent,	
  down	
  from	
  9.6	
  percent.	
  	
  	
  	
   Outpaced Population and
Seasonally	
  Adjusted	
  Data	
  	
  

150	
  

8	
  

6	
  

4	
  

2	
  

0	
  

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.	
  	
  
	
  

U.S Department of Housing and Urban Development
U.S. Department of the Treasury

Fo
Area

Atlanta	
  MSA	
  
	
  	
  	
  	
  
Nation	
  
	
  	
  	
  	
  
Note:	
  	
  Foreclosure	
  Rate
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Data	
  through	
  S
Source:	
  Realty	
  Trac	
  and

U.S. Department of Housing and Urban Housing Market and Policy Development and Research
The Obama Administration’s Efforts to Stabilize TheDevelopment | Office of Help American Homeowners | November 2011
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 first eight months of 2011,
existing home sales fell by 13 percent compared to the first
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
Spotlight on the Housing Market in Atlanta-Sandy Springs-Marietta, Georgia
prices in Atlanta rose at just one-third the national
Spotlight on the Housing Market in Atlanta-Sandy Springs-Marietta, Georgia pace between
2000 2006	
   2005.
een	
  on	
  the	
  decline	
  since	
  and and	
  new	
   Although home prices in Atlanta did not
011,	
  exisCng	
  home	
  ate as 006	
  and	
  new	
  in much of the nation, prices nonetheless
	
  been	
  on	
  the	
  decline	
  since	
  2 by	
  13	
   did
inflsales	
  fell	
   they
e	
  sales	
  fell	
  by	
  29	
  percent,	
  according	
  3	
  
f	
  2011,	
  exisCng	
  home	
  sales	
  fell	
  by	
  1 to	
  
declined 24 percent from their peak in December 2006 to their
urrently	
  represent	
  39	
  percent	
  of	
  all	
   to	
  
me	
  sales	
  fell	
  by	
  29	
  percent,	
  according	
  
al	
  rate	
  of	
  27	
  percent.	
  in ercent	
  of	
  a2009, nearly as high as the national average
low 9	
  p March ll	
  
currently	
  represent	
  3The	
  high	
  proporCon	
  
Logic	
  repeat-­‐sales	
  house	
  price	
  index	
  
onal	
  rate	
  of	
  27	
  percent.	
  The	
  high	
  proporCon	
   31 percent. Home prices in Atlanta
peak-to-low decline of
etween	
  repeat-­‐sales	
  house	
  price	
  index	
  
reLogic	
   2000	
  and	
  2005.	
  Although	
  home	
  
have shown signs of
h	
  of	
  the	
  naCon,	
  prices	
  nonetheless	
  
e	
  between	
  2000	
  and	
  2005.	
  Although	
  home	
   rebounding since early 2009, but they
March	
  the	
  naCon,	
  prices	
  nonetheless	
  
ch	
  of	
   2009,	
  nearly	
  as	
  high	
  at tlow levels not seen in more than a decade. The
remain as	
   he	
  naConal	
  
e	
  shown	
  signs	
  of	
  rebounding	
  since	
  early	
  
n	
  March	
  2009,	
  nearly	
  as	
  high	
  as	
  the	
  naConal	
  
rental market in Atlanta is showing signs of improvement, but
anta	
  is	
  showing	
   of	
  rebounding	
  since	
  early	
  
ave	
  shown	
  signs	
  signs	
  of	
  improvement,	
  
erall	
  apartment	
  like thef	
  sales market, it remains fragile. According to Reis Inc.,
vacancy	
  r improvement,	
  
Atlanta	
  is	
  showing	
  signs	
  oate	
  in	
  Atlanta	
  
	
  year	
  earlier	
  but	
  well	
  above	
  the	
  n	
  Atlanta	
  
overall	
  apartment	
  vacancy	
  rate	
  apartment vacancy rate in Atlanta was 8.4 percent
the overall inaConal	
  
	
  	
  ia	
  year	
  earlier	
  bpercent	
  fbove	
  t	
  he	
  naConal	
  
ncreased	
  by	
  2	
   ut	
  well	
  a rom	
  a year	
  ago	
  
	
  during	
  the	
  same	
   	
  pthe third a	
  year	
  ago	
  
in ercent	
  
nts	
  increased	
  by	
  2period.	
  	
  	
  	
  from	
  quarter of 2011, down from 10.6 percent a year
60	
  during	
  the	
  same	
  period.	
  	
  	
  	
   well above the national average of 5.6 percent.
earlier but
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.

New and Existing Home Sales:
Atlanta Compared to the Nation
Annual	
  Home	
  Sales	
  (thousands)	
  	
  

160,000	
  

8,000	
  

140,000	
  

7,000	
  

120,000	
  

6,000	
  

100,000	
  

5,000	
  

80,000	
  

4,000	
  

60,000	
  

3,000	
  

40,000	
  

2,000	
  

20,000	
  

1,000	
  

0	
  

2003	
  

2004	
  

2005	
  

2006	
  

2007	
  

2008	
  

2009	
  

2010	
  

NaCon:	
  ExisCng	
  Sales	
  (right	
  axis)	
  

NaCon:	
  New	
  Sales	
  (right	
  axis)	
  

Atlanta	
  MSA:	
  ExisCng	
  	
  Sales	
  

0	
  

Atlanta	
  MSA:	
  New	
  	
  Sales	
  

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

Atlanta Home Prices Declined Sharply After Relatively Modest Rise
Market Remains Fragile
Atlanta Home Prices Declined Sharply After Relatively Modest Rise
Repeat-­‐Sales	
  House	
  Price	
  Index	
  	
  (Fragile =	
  100)	
  
Market Remains Jan	
  2000	
  
Repeat-­‐Sales	
  House	
  Price	
  Index	
  	
  (Jan	
  2000	
  =	
  100)	
  

220	
  

220	
  
200	
  
200	
  
180	
  
180	
  
160	
  
160	
  
140	
  
140	
  
120	
  
120	
  
100	
  
100	
  
80	
  
80	
  

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
linquency	
  and	
  foreclosure,	
  although	
  
d	
  73	
  out	
  of	
  366	
  or more days delinquent, which includes loans in the foreclosure
moreclosure,	
  although	
  
delinquency	
  and	
  fetropolitan	
  areas	
  for	
  
quent	
  oout	
  ohe	
  66	
  metropolitan	
  areas	
  for	
  
process or bank
ked	
  73	
   r	
  in	
  t f	
  3 process	
  of	
  foreclosure)	
   owned, has been consistently higher in Atlanta
	
  nquent	
  or	
  inCCes	
  irocess	
  of	
  foreclosure)	
  
and	
  local	
  e n	
  the	
  p n	
  partnership	
  with	
  the	
  
than in the nation. Since its January 2010 high of 10.7 percent,
e	
  Atlanta	
  area	
  nCCes	
  in	
  prom	
  
te	
  and	
  local	
  e declined	
  f artnership	
  with	
  the	
  
the rate of mortgages 90 or more days delinquent has fallen
o	
  65,100	
  (7.5	
  percent)	
  in	
  Sfeptember	
  2011,	
  
he	
  Atlanta	
  area	
  declined	
   rom	
  
since	
  2000	
   7.5	
  percent)	
  in	
  hare	
  of	
   national rates declined from 8.5 percent to
to 8.9 percent;
	
  to	
  65,100	
  (show	
  that	
  the	
  sSeptember	
  2011,	
  
higher	
  in	
  Atlanta	
  than	
  in	
  the	
  naCon.	
  	
  
a	
  since	
  2000	
  show	
  that	
  the	
  share	
  of	
  
7.2 percent.	
   over
tes	
  igher	
  in	
  Atlanta	
  .9	
  percenthis	
   	
   the same period. Realty Trac data show that
have	
  fallen	
  to	
  8 than	
  in	
  the	
  T aCon.	
  
ly	
  h
n
	
  same	
  period.	
  Ralthoughata	
  show	
  that	
  
ealty	
  Trac	
  d the
rates	
  have	
  fallen	
  to	
  8.9	
  percent.	
  Tforeclosure rate in Atlanta remains higher than in
his	
  
	
  has	
  improved.	
  Completed	
  foreclosures	
  
he	
  same	
  period.	
  Realty	
  Trac	
  data	
  show	
  that	
  shows improvement for the most part since
during	
  the	
  first	
  the nationooverall, it
nine	
  months	
   f	
  2011,	
  

so	
  has	
  improved.	
  Completed	
  foreclosures	
  
ns	
  locally	
  and	
  naConally.	
  	
  CoreLogic	
  
00	
  during	
  the	
  first	
  nine	
  months	
  of	
  2011,	
  
negaCve	
  equity	
  compared	
  wCoreLogic	
  
ons	
  locally	
  and	
  naConally.	
  	
   ith	
  23	
  percent	
  
risk.	
  	
  
n	
  negaCve	
  equity	
  compared	
  with	
  23	
  percent	
  
t	
  risk.	
  	
  

Atlanta	
  MSA	
  

Source:	
  CoreLogic	
  

NaCon	
  

Atlanta	
  MSA	
  

Source:	
  CoreLogic	
  

NaCon	
  

Rental Vacancy Rates Consistently Higher an Nation
Quarterly	
  Apartment	
   Consistently Higher an
Rental Vacancy Rates Rental	
  Vacancy	
  Rates	
  (Percent)	
   Nation
Quarterly	
  Apartment	
  Rental	
  Vacancy	
  Rates	
  (Percent)	
  

13.0	
  

13.0	
  
12.0	
  
12.0	
  
11.0	
  
11.0	
  
10.0	
  
10.0	
  
9.0	
  
9.0	
  
8.0	
  
8.0	
  
7.0	
  
7.0	
  
6.0	
  
6.0	
  
5.0	
  
5.0	
  
Year	
  and	
  Quarter	
  
Source:	
  Reis	
  Inc.	
  

Source:	
  Reis	
  Inc.	
  

Year	
  and	
  Quarter	
  
Atlanta	
  MSA	
  
NaCon	
  
Atlanta	
  MSA	
  

Spotlight on Atlanta MSA | Page 2

NaCon	
  

Share of Distressed Mortgages
Higher anof Distressed Mortgages
Share the Nation, But Declining
Mortgages	
  90+	
  Days	
  Delinquent	
  Nation,of	
  All	
  AcCve	
  Mortgages)	
  
Higher an the (Percent	
   But Declining

8.0	
  
7.0	
  

U.S Department of Housing and Urban Development
6.0	
  
U.S. Department of the Treasury

hough	
  
areas	
  for	
  
closure)	
  
ip	
  with	
  the	
  

mber	
  2011,	
  
e	
  of	
  
aCon.	
  	
  
	
  This	
  
a	
  show	
  that	
  
eclosures	
  
f	
  2011,	
  
Logic	
  
h	
  23	
  percent	
  

5.0	
  

Year	
  and	
  Quarter	
  
Source:	
  Reis	
  Inc.	
  

Atlanta	
  MSA	
  

the third quarter of 2010. Foreclosure completions declined
from 30,400 during the first nine months of 2010 to 27,700
during the first 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 Atlanta	
  MSA
Foreclosure	
  Completion	
  Rates	
  in	
  the	
   – compared to 22
Third	
  Quarter	
   additional homeowners009
Since	
  April	
  1,	
  2 and
percent nationally - representing 2011
Foreclosure	
  
Foreclosure	
  
Foreclosure	
  
Foreclosure	
  
Area
loans potentially at risk.
Completions
Rate
Completions
Rate
Atlanta	
  MSA	
   	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  11,100	
  
0.5%
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  92,800	
  
4.3%
Foreclosure	
  	
  	
  Completion Rates in the	
  	
  	
  Atlanta MSA 1.8%
Nation	
  
	
  	
  	
   	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  196,500	
  
0.2%
	
   	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  2,332,100	
  
Note:	
  	
  Foreclosure	
  Rates	
  as	
  Percent	
  of	
  All	
  Housing	
  Units;
Third Quarter 2011
Since April 1, 2009
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Data	
  through	
  September	
  2011	
  for	
  Foreclosures	
  since	
  2009
Foreclosure
Foreclosure
Foreclosure
Foreclosure
Source:	
  Realty	
  Trac	
  and	
  Census	
  Bureau

Share of Distressed Mortgages
Higher an the Nation, But Declining

Mortgages	
  90+	
  Days	
  Delinquent	
  (Percent	
  of	
  All	
  AcCve	
  Mortgages)	
  
12	
  
10	
  
8	
  
6	
  
4	
  

Area

Completions

Rate

Completions

Rate

Atlanta
MSA

11,100

0.5%

92,800

4.3%

2	
  

Nation

196,500

0.2%

2,332,100

1.8%

0	
  

Springs-Marietta, Georgia
Note: Foreclosure Rates as Percent of All Housing Units; Data through
September 2011 for Foreclosures since 2009
Source: Realty Trac and Census Bureau
8,000	
  

Atlanta	
  MSA	
  

NaCon	
  

Source:	
  CoreLogic	
  

7,000	
  

The Administration’s Efforts to
Stabilize the Atlanta Housing
Market:
6,000	
  

Mortgage Aid Extended More an 135,000 Times
to Mitigate Rising Foreclosures

5,000	
  

Atlanta	
  MSA:	
  Cumula3ve	
  Offers	
  of	
  Aid	
  by	
  Source	
  Compared	
  with	
  	
  
Foreclosures	
  Since	
  April	
  1,	
  2009	
  	
  (Thousands)	
  

4,000	
  
3,000	
  
2,000	
  

2010	
  

right	
  axis)	
  

Sales	
  

NaCon	
  

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

From the launch of the Administration’s assistance programs
1,000	
  
in April 2009 through the end of September 2011,
0	
  
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 Modification Program (HAMP)
and the Federal Housing Administration (FHA) loss mitigation
and early delinquency intervention programs. An estimated
additional 21,500 proprietary modifications 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)
DeKalb	
  County	
  has	
  not	
  only	
  brought	
  new	
  life	
  to	
  once	
  vacant	
  proper3es,	
  but	
  has	
  
and Hardest Hit Fund have helped to stabilize the Atlanta
rket	
  sales	
  crea3ng	
  a	
  “spillover”	
  effect	
  that	
  is	
  helping	
  to	
  stabilize	
  communi3es,	
  protect	
  
housing market. Piece by Piece, rivate	
  investment	
  to	
  
her	
  erosion	
  of	
  household	
  wealth,	
  s3mulate	
  lending,	
  and	
  acract	
  pa local initiative organized

	
  a	
  comprehensive	
  strategy	
  to	
  partner	
  with	
  others	
  and	
  build	
  a	
  stronger,	
  more	
  sustainable	
  
Atlanta MSA NSP Activity blighted	
  1 Units)
Projected
e	
  used	
  to	
  rehabilitate	
  Cedar	
  Pines	
  Apartments,	
  a	
  (Housing68	
  unit	
  apartment	
  complex.	
  	
   Completed
bstandard	
  apartment	
  complex	
  and	
  turned	
  it	
  into	
  a	
  highly	
  desirable	
  residen3al	
  community.	
  	
  
NSP1 Total
957
511
located	
  near	
  local	
  transporta3on	
  and	
  other	
  ameni3es.	
  	
  More	
  than	
  half	
  of	
  the	
  units	
  are	
  
comes	
  at	
  or	
  below	
  50	
  percent	
  of	
  AMI.	
  	
  

16

16

sed	
  NSP	
  funds	
  to	
  purchase	
  15	
  unfinished	
  homes	
  in	
  Avington	
  Glenn,	
  a	
  subdivision	
   41
Construction of new housing
s	
  before	
  comple3on.	
  	
  The	
  comple3on	
  of	
  the	
  homes	
  revitalized	
  the	
  neighborhood	
  and	
  
	
  prices	
  in	
  the	
  area.	
  	
  NHomeownership assistance to eligible	
  homebuyers.	
   167
ine	
  of	
  the	
  homes	
  have	
  been	
  sold	
  to	
   low- and

Clearance and demolition

99

moderate-income

Rehabilitation/reconstruction of
733
olders	
  from	
  across	
  the	
  Atlanta	
  area	
  organized	
  an	
  innova3ve	
  local	
  foreclosure	
  response	
  
residential structures

	
  (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	
  
NSP3 Total
1220
na3onal	
  organiza3ons	
  make	
  up	
  the	
  PBP	
  leadership	
  team,	
  which	
  include	
  the	
  Atlanta	
  
Clearance Regional	
  Commission	
  (ARC),	
  CredAbility,	
  Enterprise	
  
12
t	
  Partnership	
  (ANDP),	
  the	
  Atlanta	
  and demolition
ederal	
  Reserve	
  Bank	
  oHomeownership assistance to low- and ssocia3on,	
  the	
  Home	
  
f	
  Atlanta,	
  the	
  Greater	
  Atlanta	
  Home	
  Builders	
  A
992
onal	
  Housing	
  Conference,	
  and	
  NeighborWorks	
  America.	
  	
  The	
  HUD	
  Atlanta	
  field	
  office	
  has	
  
moderate-income
e	
  leadership	
  team	
  from	
  the	
  earliest	
  stages	
  of	
  the	
  ini3a3ve.	
  Coordina3on	
  and	
  staff	
  
by	
  ANDP.	
  	
  	
  Examples	
  Rehabilitation/reconstruction of
of	
  PBP	
  ac3vi3es	
  include:	
  

residential structures

216

	
  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	
  
me	
  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.	
  

0

396
0
0
0
0

Mortgage	
  Aid	
  Offers	
  in	
  Atlanta	
  MSA	
  from	
  April	
  2009	
  through	
  September	
  2011:	
  135,800	
  
Foreclosure	
  Comple3ons	
  Over	
  Same	
  Period:	
  92,800	
  

160	
  
140	
  
120	
  
100	
  
80	
  
60	
  
40	
  
20	
  
0	
  

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.	
  
	
  

by members from both the public and private sectors with the assistance of the local and
regional HUD offices, 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-profits 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 benefited 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:

Spotlight on Atlanta MSA | Page 3

U.S Department of Housing and Urban Development
U.S. Department of the Treasury

U.S. Department of Housing and Urban Housing Market and Policy Development and Research
The Obama Administration’s Efforts to Stabilize TheDevelopment | Office of Help American Homeowners | November 2011
•

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
firms, 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 financing 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
unfinished 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 Office 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 five 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 finance 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 five 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.

Spotlight on Atlanta MSA | Page 4


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102