The Rise of Atlanta: The Reason Behind Migration to Atlanta
Every year, more people are migrating to the Big A. In 2018, Atlanta grew by 75,000 residents, with the Atlanta Regional Commission forecasting an additional 2.5 million people by 2040. Atlanta has been one of the fastest-growing cities in the US thanks to its extensive benefits to businesses and the low cost of living to residents.
Recently, businesses in and outside of the US started to relocate to Atlanta and expand into the city. Just in 2018, more than 57 firms opened new locations in Atlanta with Google being one of the biggest companies to open new offices in the area. Businesses in fast-growing industries, especially bioscience, FinTech, supply chain management, and IoT, are more likely to settle in the A-town. Driving factors behind this office-migration trend consist of tax benefits, accessible transportation, and high-education providers.
The government of Georgia has incentivized firms to move to the state by lowering its corporate tax rate to 5.5% (as of January 2019) and by providing tax shields when firms create new jobs. The reductions in government tax collection benefit the firms as they yield higher profits. Atlanta’s Hartsfield-Jackson airport has been the busiest airport in the US for over a decade. It is the center of international and national flight arrivals and departures, serving more than 100 million passengers every year. The magnitude of the airport facilitates travel arrangements for business meetings and such. Additionally, Atlanta has been a go-to place for businesses due to its diverse talent pool from “top-notch higher education” within the Southeast. Consequently, companies move to Atlanta to maximize their profits, minimize travel inefficiencies and exploit human capital. All of which have the potential to add value to the firm.
Another reason that explains the population growth of Atlanta is the city’s affordability. Atlanta has been a great destination for the unemployed population of the US. The Georgia Department of Labor stated that, in February 2018, Georgia added 20,800 jobs. Furthermore, college students are looking for more affordable places to live. While New York and San Francisco might provide students better career development options and wages, students are prioritizing paying off their student loans faster than pursuing their dreams in a large city with higher costs of living.
Moreover, a study conducted by Expatisan shows that Atlanta has a 73% higher cost of living compared to Prague, while the cost of living in New York is 155% higher than Prague. While median rents for a one-bedroom apartment in New York is $2,134, in Atlanta it is $1,047. Having said that, it is no surprise that most of the people who moved to Atlanta are from big cities like New York, Washington D.C., San Francisco, and Chicago. Although there is a significant difference in the income level between New York and Georgia - New York’s real median household income is approximately $65,000 while Georgia’s median household income is approximately $56,000 - the difference in the cost of living is much more significant.
All in all, Atlanta's growth to be one of the best cities in the US has attracted a lot of people to move to the city. With more opportunities coming to this city, the possibilities of this city are endless.
Edited by:
Naomi Santiago, Daryl Chan
