The Letton

Track the Market Trends with Will's Market Insight

VOLUME 1, ISSUE 8 / 8 August, 2025

THREE MONTHS FROM NOW…

By late fall, many of the big questions hovering over the market will begin to clear. Here’s what we may know by then—and what it could mean for Atlanta real estate:

The Fed is likely to lower rates as it continues to monitor inflation, consumer demand, and the lingering effects of tariffs. While these tariffs impact only a portion of the economy, they still affect the cost of goods—including imported building materials. Many companies are already adjusting earnings forecasts and tightening operations, which could temper price hikes and keep us out of recession territory. Even with a Fed rate cut, mortgage rates in Atlanta likely won’t drop dramatically, but a modest dip could coincide with increased workplace efficiencies and possibly some softening in the job market. Will we see a full-scale trade war? For now, the market remains cautiously optimistic.
Lower taxes or additional incentives could help offset the impact of higher prices, keeping consumer spending steady—particularly in the Southeast, where the cost of living is still relatively affordable compared to coastal markets. While luxury buyers may feel the effects of “LUXE-flation,” Atlanta’s comparative value remains a key driver of interest from buyers relocating from New York, Chicago, and California.
Construction costs are expected to climb. Tariff-related price increases on materials, paired with continued labor shortages—exacerbated by immigration policy shifts—are already pressuring Atlanta’s new construction market. The cost to build or renovate in Buckhead, Sandy Springs, or even the Westside is rising. Those who secure property now may benefit from avoiding future cost surges and delays.
Locally, all eyes are on the upcoming election season. Atlantans are weighing the pros and cons of promises that sound great on paper—but may lack practical implementation. Real estate, housing affordability, and infrastructure remain central issues. Atlanta’s ability to grow smartly depends on pragmatic leadership and thoughtful development, not just headline-grabbing proposals.

Looking back, this moment may prove to be a unique window—especially for luxury buyers. The combination of steady (or slightly lower) rates, still-manageable construction costs, and the beginning of the largest wealth transfer in U.S. history could converge to create rare value. Those who act now may look back on this season as a time they timed the market just right.

DID YOU KNOW?

The iconic Hotel Clermont on Ponce has quietly become one of Atlanta’s most in-demand boutique destinations post-renovation, attracting a stylish mix of locals and visitors alike. Meanwhile, Nobu Hotel & Residences in Buckhead is now fully open, blending Japanese-inspired luxury with elevated Atlanta living. Expect demand for nearby real estate to rise.
Atlanta crime is down significantly in 2025, with major crimes dropping nearly 30% citywide in the first half of the year. Buckhead and Midtown have seen some of the most notable improvements—good news for homeowners and investors alike, especially as more walkable, mixed-use developments come online.
Atlanta is now a top 3 city for film and TV production in the U.S., with over 3 million square feet of production space across the metro. Major studio expansions in Fayetteville, Doraville, and Covington are fueling economic growth and luxury housing demand as producers, talent, and crew put down roots here.