Atlanta vs Austin

**Home-Price Appreciation: Momentum vs. Recovery**

Atlanta's FHFA House Price Index showed a +4.2% year-over-year gain and a -0.1% quarter-over-quarter dip as of Q4 2024 — note that this is the latest available FHFA quarter for Atlanta, as the series stopped updating, and it should not be compared as concurrent with Austin's more recent data. Austin's index, by contrast, was up just +0.3% year-over-year and +0.9% quarter-over-quarter as of Q2 2026. The divergence in trajectory is stark: Atlanta has sustained positive annual appreciation, while Austin is still working through a multi-year correction that began when prices peaked in mid-2022 and fell sharply through late 2023. For buyers, Atlanta offers a market where values have continued to compound, while Austin offers what may be a historically favorable entry point — prices are roughly where they were in early 2024 and well off their 2022 highs — for those comfortable with a longer holding period.

**Construction and Supply: Different Pressures**

Atlanta issued 2,841 building permits in July 2026, up +0.7% versus the same month a year earlier (Census BPS), reflecting a relatively stable construction environment. Austin issued 2,605 units in July 2026, down -10.7% from a year earlier — a meaningful pullback from the extraordinary permitting volumes of the pandemic boom years. That earlier supply surge is still working its way through the market, keeping upward price pressure subdued in Austin. The slower permitting pace in 2026 may eventually reduce that supply headwind, but the lag between permits and occupancy means the effect is not immediate. Atlanta's steadier permitting supports its more consistent appreciation trend, while Austin's declining new supply could be a constructive signal for buyers thinking two to three years out.

**Labor Markets, Income, and Cost of Living**

Atlanta's unemployment rate was 3.2% in July 2026 (not seasonally adjusted, BLS LAUS), down from 3.4% a year earlier in July 2025 — a modestly improving picture supported by its diverse employer base in logistics, film, fintech, and healthcare. Austin's unemployment rose to 4.0% in July 2026, up from 3.6% a year earlier in July 2025, reflecting some softening in its tech-heavy labor market as hiring cycles have cooled. Austin's median household income of $99,897 (ACS 2024) exceeds Atlanta's $92,344 (ACS 2024), but Austin's higher earnings are partially offset by its notably higher property tax burden. On overall cost of living, the two metros are nearly equivalent: Atlanta's BEA price level is 100.1 (US = 100) versus Austin's 98.1 — a gap of under 3% that is not practically material for most budgets (BEA Regional Price Parities, 2024).

**Taxes, Rent, and the Bottom Line for Owners**

The most significant financial divergence between these markets is property taxes. Atlanta's effective property tax rate is 0.81%, while Austin's is 1.43% (both ACS 2024 effective rates, with homestead exemptions already reflected). On a $400,000 home, that 0.62 percentage-point gap translates to roughly $2,480 more per year in Austin. Texas compensates with no state income tax on wages, while Georgia levies a flat 4.99% (2026 tax year) — so the tax calculus depends heavily on income level and home value. A household earning $100,000 saves approximately $4,990 in state income tax in Texas, which more than offsets Austin's property tax premium on a moderately priced home; the math narrows or reverses at lower income levels or higher home values. On the rental side, the two markets are close: HUD FY2026 two-bedroom Fair Market Rent is $1,820/month in Atlanta versus $1,852/month in Austin — a difference that is immaterial for most landlord underwriting. Population growth tells a different story: Austin's metro grew +2.1% year-over-year (2025 Census estimate) versus Atlanta's +0.96%, suggesting stronger underlying demand fundamentals in Austin even as its market digests excess supply.