The wealth in Atlanta has grown in recent years, and with it, the demand for luxury real estate has seen a spike.
This is in large part due to Atlanta’s position as the “Hollywood of the South” — tax incentives implemented 10 years ago have created today’s booming entertainment industry.
Fortune 500 companies and tech incubators are also creating a healthy job market.
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New York, Los Angeles, and Miami have long held reign as some of the biggest hotbeds of wealth in the US, but there’s a new queen in town.
Atlanta has been steadily transforming into a hub of affluence — the number of individuals with a $30 million-plus net worth in the Atlanta metro area increased by nearly 22% from 2014 to 2017, according to research provided to Business Insider by Wealth-X.
Consequently, the demand for luxury homes in Atlanta is stronger than it has ever been, Alex Page, luxury marketing manager at Harry Norman Realtors, a Christie’s International Real Estate affiliate, told Business Insider.
Three Atlanta-based Compass real-estate agents told Business Insider that luxury home sales have been on the climb. So, too, have housing prices: From January 2014 to January 2019, median home prices in Atlanta have increased by 83%, compared to 38% nationally in the same time frame, according to Zillow.
The growth in wealth — and its spread to luxury real estate — is tied to Atlanta’s booming industries.
According to Page, over the past several years, the Atlanta metro area has become home to entertainers, Fortune 500 execs, and techies, thanks to the film and television industry tax incentives, the relocation of company headquarters and regional offices, and development of technology incubators fueling job growth.
Tax incentives have transformed Atlanta into the “Hollywood of the South”
Atlanta’s growing prominence as the “Hollywood of the South” is driving a rise in the city’s wealth, several real-estate agents told Business Insider.
The city is commonly referred to as “Y’allywood” due to the significant growth it has seen in the film and television industry, Page said: “Georgia is one of the few, perhaps the only, states that offer lucrative tax incentives to the entertainment industry.”
In 2008, then-governor Sonny Perdue signed a tax incentive with no expiration date for film productions after losing out on the film “Ray” to Louisiana, reported Eliana Dockterman for TIME magazine. On productions exceeding $500,000, there’s a 20% tax incentive and an extra 10% if a peach logo is featured in the credits, she wrote.
From the 2007 to the 2016 fiscal years, direct spending on Georgia’s film industry increased from $93 million to $2.02 billion, according to Alison Herman of The Ringer. More major feature films were filmed in Georgia than Los Angeles in 2016, reported Dockterman, citing Los Angeles film office data.
Atlanta has served as the filming location for hit movies like “Black Panther” and “Avengers: …read more
Source:: Business Insider