A study produced by the School of City and Regional Planning at the Georgia Institute of Technology found that between 2011 and 2015, the price of homes near the Beltline increased faster than homes in the rest of Atlanta.
“The increase in median sale price was the highest near the Southwest Segment, with a cumulative increase over the four years of 68 percent. The other three segments saw median prices rise by 40 to 51 percent,” the report says. “Meanwhile, the median sales price of homes more than a half-mile from the Beltline increased at a substantially smaller rate, just 17.7 percent over the four-year period.”
The report was published on Feb. 9.
While this is welcome news for real estate agents, it also has the effect of making housing along the Beltline less affordable, the report says.
“The shock of the property tax increase will fall heaviest on those with lower-valued homes,” the report says.
The report says the typical homeowner gets a $30,000 homestead exemption, meaning taxes aren’t applied to the first $30,000 of a home’s assessed value. So, for example, if a home is worth $100,000 the assessed value is 40 percent, $40,000. But the homestead exemption reduces this further, to $10,000. But if a home appreciates from $100,000 to $150,000, property taxes would triple, the report says.
The report says affordable housing remains a challenge for the Atlanta Beltline.
“When the Beltline began, a goal of creating 5,600 units of affordable housing over the life of the tax allocation district (TAD) was established,” the report says. “Unfortunately, up until this point, less than 1,000 affordable units have been created, despite being close to one-half into the life of the Beltline.”
The report concludes that rising housing prices will increase “economic segregation” in the city.
The report says, “the Beltline represents a massive investment by the City of Atlanta and, arguably, should be beneficial and available to all sorts of Atlantans. As the remainder of the Beltline is built out, stronger efforts are needed to provide for housing options that are accessible to lower-income households and to help existing residents remain in these neighborhoods if they want to.”
To read the full report, click here.