Atlanta's Downtown Rezoning Plan and Its Real Estate Impact

The City of Atlanta has some really fun news for everyone! It plans to change all of the old parking lots into some new housing and also cut back on the review times so builders can build their new towers faster. You'll see even more walking paths that help to make the downtown area feel lively and welcoming. The tax districts will pay for all of the new parks and improve the stormwater systems that need updating.

We've seen how the changes can occur firsthand. The new zoning laws protect all of the historic building fronts while allowing for some fresh development.

According to property managers, they receive steady calls every week from people wanting to buy the air rights above aging buildings. The investors will soon find out where the Stitch park project and the tax incentives might increase the property values. City planners and residents will see how the medium-height apartments change the neighborhood. They'll also notice how the green spaces over highways transform the area. The enhanced service districts will also affect the neighborhood over the next ten years.

Atlanta's downtown continues to grow fast - let's talk about how this will affect all of the investors in this great city!

The Stitch And Downtown Connectivity

The Stitch sits right in the middle of Atlanta's downtown and it's now looking at some new changes - it's a fresh vision to cover the I-75/85 with a 14-acre green space - this big park deck can help to fix the split between the Midtown and Downtown areas that the highways made many years ago. The team wants to bring back the original street layout that existed before the interstates cut through the heart of Atlanta.

You can see how it'll work as a new way to fix the urban areas that other cities have already tested quite successfully. When Dallas finally finished the Klyde Warren Park over their highway, the property values went way up for everyone. Boston also turned their old elevated highway into the Greenway, which is now some of the most valuable land in the entire city.

The project has already secured $200 million to start the work, so the project is now moving ahead very nicely - this first part will cover about three-quarters of a mile between Ted Turner Drive and Piedmont Avenue. Maybe you're taking a lunch break in a great park where now you can only see concrete and car fumes. We really need more breathing room downtown. That's going to be the future for all of the thousands of people who work in Atlanta.

The money aspect is an idea that looks very promising. The team thinks that the project will create billions in new value for everyone. They're looking at $50 million in fresh revenue from the areas that barely contribute anything to the city's funds now. Those empty parking lots you drive past? They'll become affordable housing and shops that help the community. Some of the people in Atlanta still worry about waiting until 2036.

The big construction projects like this usually tend to run into delays and cost much more. What if they can't find all of the money needed? And how'll you get around during the years of construction? These questions deserve some honest answers from everyone.

The new zoning plan uses both public and private management to make sure that development helps the entire community. When everyone completely commits to the process, this has worked very well in other cities, too. They want to build the places where you'll want to spend your time.

Atlanta has been waiting for many decades for someone to help with this highway problem. The Stitch can connect all of the neighborhoods together. Cities deserve to be whole again. It can also build a stronger community and turn the wasted space into lively areas where people want to be. You might just finally see a downtown that feels whole again for everyone.

District Taxes

Atlanta's plan to change downtown uses some funding tools that might sound tough, but they're easy when you break them down. The city imposes taxes on commercial buildings and apartment complexes to pay for the improvements. These taxes don't go into the standard city budget like the normal taxes do.

This matters to everyone. Instead, the money stays right in the neighborhood to fund projects like The Stitch. The Stitch is a giant deck planned to go over the Downtown Connector that would create some new parks and bring all of the divided neighborhoods back together. When these improvements increase property values, the city captures that extra tax money and puts it right back into the same area.

They call this the tax increment when you finance it. It lets the city borrow money based on future tax increases to pay for projects. You can get started at the East Side tax allocation district extension - it shows this in action well.

The small property owners don't understand how these districts affect what they pay. The tax increase might not look like much to them. But over time, those extra costs can add up faster. The money always comes from somewhere. The parks and green spaces always look interesting in those renderings. Just remember that someone needs to pay to keep them nice and give you the security while maintaining those irrigation systems.

You can learn from what happened with the BeltLine in Atlanta. While it changed the neighborhoods beautifully, the steady funding wasn't always easy for everyone. If you own some property near downtown, you should see if those higher assessments make sense when you weigh them against the possible benefits to your building.

Federal grants can help to cover some of the costs. But don't count on them - they're competitive and never a sure thing for anyone. The city needs to balance its big dreams with some helpful ways to pay for them. Most property owners love the idea of neighborhood improvements - until they get the bill for them afterward. Make sure that you're aware of what you could be signing up for before you get too excited about the new development plans.

Plan A And Citywide Growth

While the downtown rezoning plan makes headlines, most of Atlanta's neighborhood maps haven't changed in years - this situation often frustrates many housing advocates who are pushing for more living options throughout the city. These "missing middle" supporters often talk about the teachers, the firefighters, and the store clerks who cannot afford to live anywhere near their workplaces.

Take Maria, a kindergarten teacher who recently shared her story with the planning board. She spends about half of her monthly salary on a small apartment. "I teach the children of Grant Park families but I can't afford to live within ten miles of my school," she explained. Housing has been quite a challenge lately. You'll find many people in similar situations in Atlanta's housing market.

Atlanta needs to make some big decisions. We all need a decent place to live. Does it make sense to maintain the status quo when so many residents have a hard time finding homes they can afford?

You should try to bring up this question at your next community meeting - your voice really matters in these conversations. Atlanta's Plan A can be the foundation for these possible changes.

You might not know that it's Atlanta's Development Plan that city officials adopted back in October 2021. The plan maps out how Atlanta might grow over the next 5, 10, and even 15 years across the neighborhoods. You'll see that many residents confuse Plan A with the zoning code. The whole system can seem a bit tough to understand. These two work as separate but connected tools.

Plan A gives you the bigger vision for the city, while the zoning laws tell you specifically what can be built on pieces of land. The city planners update Plan A every five years to better match what Atlanta needs as the population grows and the neighborhood processes change. The downtown rezoning work will connect to this bigger vision for the city. You can think of the downtown as something like a testing ground - the successful ideas might eventually make their way to your own neighborhood, too.

The Housing and Permit Process

Atlanta builders get pretty frustrated with the latest Administrative Permit process. There was even a local builder who waited for 14 months just to get some permits for a small mixed-use project close to the downtown area. That's ridiculous. The new streamlined process was built to cut that waiting time by half.

The proposed fast-track options can help to create more housing near the MARTA stations - it makes plenty of sense with these. More people can live without needing their cars, and the city can become easier for everyone to get around in. Consider how the plan gives developers some incentives to build different types of housing - it creates more options in what's available for everyone.

Not everybody feels positive about these changes, though. Some of the local residents worry about the cars from new buildings taking up all of the parking on their streets. Others fear that their rent might increase when you push them out of the neighborhoods they've called home for decades. These problems really matter and need some attention from everyone.

You may wonder why Atlanta hasn't made the fourplexes legal across the entire city yet. Urban planners see these small multi-unit buildings as a gentle way to add more housing without putting up massive towers everywhere. For now, the city has chosen a targeted strategy instead.

State laws could still derail some parts of the plan in the future. A few state lawmakers have proposed bills that would limit what cities can do with their zoning rules. No one saw that coming at all. Plus, some neighborhood associations fight against the density increases, even modest ones. You should watch how the city works through these challenges in the coming months.

What It Means For Investors

Downtown Atlanta is about to go through quite a big real estate change. The $5 billion Centennial Yards project will change the entire area with 12 new city blocks filled with shops, offices, and homes - this really changes everything downtown.

You'll see some investors rushing to buy property near The Stitch footprint - it makes perfect sense. The area will see massive foot traffic, and the property values will jump once all of the construction is finished. Other real estate players are taking a different strategy.

They just look at all those outdated office buildings and see a real opportunity. You can convert these spaces into mid-rise apartments and suddenly have some prime rental property in a downtown area where many people want to live. The money in Atlanta usually considers three different timeframes for investments. You can make the short-term flips near announced projects work if you move faster than the others.

The mid-term repositioning deals need more capital to execute successfully. The long-term holds will benefit the most from all of the density changes that come with the new zoning laws.

I talked to a broker last week who joked that Atlanta's construction cranes now "outnumber peaches" in the city. Funny local comments aside, the numbers back him up completely. The cap rates in all of the areas affected by the master plan have already dropped by nearly half a point since the announcements were made. You need to watch out for overpaying before the project funding clears all of the hurdles - this situation gets really tough.

The tax increases also catch many investors by surprise. The downtown revitalization brings higher assessments, and those property taxes can eat into your expected returns over time. The CoStar reports show that the sales comps can jump 15% in blocks next to planned development sites - this movement makes it very tempting to get started now before prices climb even higher.

Moving to Atlanta?

When you look back at the zoning changes, you can see how all of the different home types can be made to add some life and possibility to our streets. We all need somewhere to live. Many of us felt some relief when the laws loosened, and it gave more people a chance to find homes that work for their lives and wallets. Even small adjustments to the height limits or the parking laws make the blocks feel greater than you might expect.

These stories can guide these changes and help to create a downtown where all kinds of households can be welcome. Community members spoke up from the beginning, teaching us to listen first and then act second.

When the planners paid attention to the problems about neighborhood character, they managed to blend new ideas with the familiar beauty that people already loved. We've learned that the city plans can develop better when the residents, builders, and officials have some honest conversations together. Communication changes everything. When you work together, it changes a basic paper map into a real neighborhood where people want to live for years to come.

You can see this lively city as your new home, and you'll find that every neighborhood has its own personality and every corner tells a story. You need to know all of Atlanta's beauty with some local knowledge and just some patience. House hunting gets very exhausting.

That's where we, at the Justin Landis Group, can come in. You might want a place in the quiet suburbs or a home near the busy city streets. Our team can connect you with what you're looking for.

Please reach out to us, and let's start your search for the perfect home together.