Georgia is a great place to both live and invest in the Georgia real estate thanks to its affordable living cost, low taxes, and housing costs that are below the United States average. The latest number from the Georgia Association of Realtors (GAR) is the evidence. Median sales prices of a home in this state have gone up by 21 percent while the month’s supply of inventory decreased 8 percent to only a month.
The Georgia real estate market found itself in the same position as every other state in the nation. Local housing trends are the direct result of indicators create after the global pandemic. The impact of the global pandemic on the state’s housing market has catalysed demands, lowered inventory levels, as well as changed the investing landscape at the same time. As the result, home values have tested new highs every month last year.
The housing market in Georgia is still a great place to invest in real estate. However, note that most viable exit strategies have altered. While rehabbing was once the most standout form of real estate investing, rises in home values have lowered profit margins. This does not mean that real estate investors in Georgia are not able to rehab real estate, but long-term strategies look more appealing at this time.
Specifically, the new market that the pandemic created seems to favour owners of rental properties and landlords.
Georgia at a Glance
Georgia is situated in the vibrant Southeastern part of the United States. Nicknamed the Peach State, it is the 8th most populous state in the nation. This state is bordered by Tennessee, Alabama, Florida, the Atlantic Ocean, as well as North and South Carolina. More than 10.7 million residents call Georgia home.
The capital city of Georgia is Atlanta, which has a population of about 6 million people in the metropolitan area, making it the largest city in the state as well as biggest real estate market. Other big cities in Georgia include Macon, Columbus, Augusta, and Savannah, which is the oldest city in the state.
Georgia Real Estate Market Overview
At the beginning of 2021, a report from MoneyWatch said that foreign investors were going towards a daisy chain of often overlooked and out-of-the-way markets in smaller cities in the Southeast like Augusta, Georgia. Taking a look at the performance of the Georgia market of real estate over the last year, it is effortless to understand the reason.
The Georgia Association of Realtors reported that the median sales price of homes in Georgia rose by 21 percent from year to year, while the number of houses in Georgia listed for sale dropped by almost 9 percent as of April 2022. The median home price Georgia is around $306,113, according to the Zillow Home Value Index as of April 2022.
Today’s home values exceed pre-recession price points and are now effortlessly higher than they have ever been. Each increase in value throughout 2021 has represented a new high of all time. Increases in home values last year were the direct result of the global pandemic and its lasting impact on the local housing sector.
The real estate in Georgia has seen its median home value increase as much as 20.3 percent over the past year because of, mostly, low inventory levels and increased demands. On the other hand, the typical home value in the country increased around 18.4 percent.
- The value of a typical home in Georgia has gone up by 27.7 percent over the past year.
- The median home value in the state has grown by more than 80 percent over the last 5 years.
- Houses for sale spend 26 days in the market from listing to get a contract, a decrease of 16 percent compared to last year.
- Inventory levels dropped by 8 percent from year to year.
- The inventory month’s supply decreased 8 percent to only a month, indicating that Georgia is among the hottest markets.
- The most expensive places to live in Georgia include Thomasville, Chamblee, Dahlonega, and College Park.
The key housing market statistics can be varied within the state. Therefore, make sure to research housing markets by city including Augusta, Savannah, Atlanta, Columbus, and Gainesville.
Georgia Real Estate Market Trends
Georgia has been among the hottest real estate markets in the United States for years. The population growth positively contributes to the housing market in the state. Based on the most recent data from the US Census Bureau, nearly 285,000 people reportedly moved to Georgia back in 2019. The current real estate market Georgia is also a great place to invest in rental properties as around 36 percent of households in the state are renter occupied, with single-family homes are the largest part of housing units.
WalletHub ranked some cities in Georgia including Athens-Clarke, Sandy Springs, and Atlanta as one of the rapidest growing places in the United States. Population growth along with housing prices and dynamic economy play an important role in keeping the housing market in the state strong and the demand for rental properties high. Rents in Augusta, Atlanta, and Athens have risen between 3 percent and 14 percent from year to year.
Georgia Real Estate Market Forecast
To be clear, there are way too many variables that must be considered and measured to predict a respective market’s outcome accurately. So, there will always be a margin for error. That said, it has become good practice to try and anticipate a market’s most likely outcome. Using historical data, it is safe to forecast the real estate market in Georgie like followings:
- Prices Will Continue to Increase
There is a big possibility that prices will continue to increase in the Georgia real estate market for at least a year. It is because today’s inventory level is not enough to meet current demands. This condition will encourage homeowners to increase the price to face the strict, competitive housing market.
Coupled with low interest rates and strengthening economy, that should grow the number of buyers actively participating in the state’s housing market. Until there is enough inventory to meet demands, it is predicted that home prices in Georgia will continue to grow.
- Secondary Cities Will Receive More Attention
As you know, the global pandemic has allowed more employees to work from home. This condition encourages them to move to alternative cities with lower living costs to survive while keeping their employment status. As the result, homeowners are trading expensive big cities for cheaper secondary cities, such as Warner Robins and Alpharetta. Therefore, it is forecasted that secondary cities in Georgia will receive more attention.
- Optimism in the Industry Will Work in Georgia’s Favour
The real estate market in Georgia has a lot of things that benefit the state, but optimism is probably its biggest resource. While distressed Georgia properties and foreclosures have damaged the state, the worst seems to be in the past and positivity is all that remains moving forward. Though showing one of the highest foreclosure rates in the nation, employment is still relatively high in Georgia. The economy is recovering and that should help many homeowners.
The shortage of inventory will continue to grow home prices in Georgia. Though the home price in the state is below the national average, it has more than doubled since 2012 and is projected to continue rising in the foreseeable future.
Population Growth in Georgia
According to the Governor’s Office of Planning and Budget, Georgia had a net population addition of almost 114,000 residents between 2020 and 2021. Go back further, nearly 285,000 people moved to this state back in 2019, as reported by the US Census Bureau. And it is estimated to increase by another 1.1 million residents between now and 2030. Here are some stats about Georgia population growth.
- The most recent stats from the US Census Bureau showed that Georgia had a state population of more than 10.7 million people in 2020.
- The population in Georgia increased by 10.6 percent since 2010.
- Now, the state is home to more than 10.8 million residents, according to the Governor’s Office of Planning and Budget.
- It is predicted that Georgia will have nearly 12 million residents by 2030 and nearly 13 million residents by 2040.
- The most populated cities in Georgia are Atlanta with 6.1 million residents, Augusta with 611,000 residents, Savannah with nearly 405,000 residents, and Columbus with more than 328,000 residents.
Job Market in Georgia
Job cuts in Georgia were not as extreme compared to other parts of the United States. It is one of the reasons why the state’s economy is estimated to rise by 4.3 percent this year. According to reports from the Atlanta Journal Constitution, Georgia should see larger increases from white-collar and tech jobs, logistics and warehousing, as well as hospitality and personal services.
The migration allows for the state’s consistent best state for business. The Area Development magazine ranked Georgia as the best for business for 7 years straight, from 2014 to 2020. 9 out of 10 Fortune 500 employers operate in Georgia and 18 of these are headquartered in this state. Much of this migration is driven by the affordability and strong business environment in the state. Its strong knowledge-based economic system drags new talent to Georgia.
- Forbes ranks Georgia as the 6th best state for doing businesses as the job growth in this state was 12 percent from year to year.
- Georgia ranks 8th in the country for a net migration gain for the past decade.
- As recently reported by the Bureau of Labor Statistics, the unemployment rate in Georgia is just 3.1 percent. Moreover, it has a labor force of 5.1 million.
- 17 Fortune 500 companies are situated in Georgia, such as SunTrust Banks, Honeywell, Delta Air Lines, Coca-Cola, UPS, and Home Depot.
- Companies in Georgia included on the Fortune 500 list of top US companies include Intercontinental Exchange, FleetCor Technologies, Aflac, and Beazer Homes USA.
- The diversified economy in Georgia is supported by small and big businesses in real estate, logistics and technology, transportation, and manufacturing, as well as insurance and finance.
- The state is home to 52,000 programmers and software developers, 44,000 engineers, and 21,000 computer and information analysts.
- Georgia Department of Labor reported that the state will have thousands of new jobs in engineering, technology, mathematics, and STEM careers of science in the next few years.
Life Quality in Georgia
Based on a recent report from the US News and World Report, Georgia ranks among the best states to live and work in the country. In fact, the state ranks high for fiscal stability, economy, and infrastructure that should help maintain the housing market robust for the upcoming years.
- 17 of the top hospitals in the United States are located in Georgia.
- Georgia is home to specialized training centers focusing on advanced manufacturing, fintech, film, cybersecurity, bioscience, and aviation. These help the residents of Georgia earn an average annual household income of $61,224.
- The four-season climate in Georgia is perfect, from summer temperatures of 80 degrees to short winters with average temperatures in the upper 40s degrees.
- Georgia is a nice place for sports lovers as it is home to 4 major professional sports leaguers, which are MLS Atlanta NBA Atlanta Hawks, NFL Atlanta Falcons, and MLB Atlanta Braves.
- Other world-famous sporting events in Georgia include NASCAR Sprint Cup Series, Chick-fil-A Peach Bowl, and The Masters Tournament.
- Georgia offers low taxes and affordable living costs, making it one of the best states to live and retire.
Georgia Real Estate Market FAQs
- Is Georgia a Cheap State to Live in?
Georgia offers lower living costs compared to other states in the United States. It also offers lower taxes, making it among the best states to live in the country.
- Is Georgia Going to Remain a Hottest Real Estate Market?
This depends on which side you are, buyer or seller. Since the home price in this state is projected to continuously grow, Georgia is a hottest real estate market for sellers and investors as it helps them to earn profits, but not necessarily for buyers.