Learn more about the housing market in Georgia

Every state is unique when it comes to the real estate market. That’s why it’s critical to understand the market you live or operate in. Whether you’re renting, buying or selling, it will impact many aspects of your life.  

Georgia Housing Market Overview 

Despite being a sellers’ market like most of the country, Georgia is actually more balanced than many other states. It takes 33 days on average for a home to sell in Georgia currently, which is right around the national average. The market also has the fifth highest housing inventory in the country. 

Georgia has a total real estate appreciation of 132.52% in the last ten years, which means this is a market that continues to see growth. This rate is substantially higher than the national average. 

Despite this growth, housing inventory is still the main issue regarding the housing market in Georgia. This is generally true across the country. So, prices across the state remain stagnant or are rising slightly, but the median home price is still under the national median. 

Overall, the Georgia housing market is doing fairly well. The current market is more stable than a lot of other places in the United States. 

Georgia Housing Market Trends 

To understand the Georgia real estate market, it’s important to keep up with trends. Let’s look at some key ones in the state: 

Note: These statistics are based on Redfin’s monthly housing data from May 2024. 

Median Home Price 

Georgia’s median home price is $386,600, according to Redfin’s monthly housing market data from April 2024. This is an increase of about 4.8% since May of last year. The median home price for a house in America was $439,716 in May of 2024, which puts Georgia below the national median, even with the slight increase. 

Number of Homes Sold in April 2024 

In May, there were 12,332 homes sold in Georgia, down 4.7 from last year according to the Redfin dataset. Thus, Georgia’s market has cooled off a little bit. It’s also important to keep in mind that this number might be inflated compared to other months since nationally speaking, sales usually peak during the spring and summer months and slow considerably in the winter. In fact, the National Association of Realtors (NAR) predicts that in February and March alone, sales activity increases by as much as 34% and prices by 3%. 

Median Days on Market (DOM) 

Days on market (DOM) is the average length of time a home remains listed on the market before being put under contract. A lower DOM signals an extremely competitive seller’s market with more pressure on buyers to come in with higher offers and remove contingencies. A higher DOM signals a buyer’s market with slower sales and less leverage for sellers. 

The current median DOM in Georgia is 33 days. This is one day over the national average for May, so Georgia is more balanced than many states when it comes to this metric. 

New Supply Statistics 

Housing supply continues to be an issue in Georgia. It’s tight and competition is high across the state. There is only three months of supply right now, which is below the four to five months of supply experts generally say is best. 

Supply didn’t change at all year-over-year. Experts hope this trend will course-correct a bit throughout 2024.  

Property Tax Rate 

The average property tax rate in Georgia is 0.92%, according to Rocket Mortgage. This places Georgia’s average property tax rate near the middle of the pack in the United States (includes District of Columbia). It’s important to point out that property taxes vary widely depending on the specific county of Georgia and the value of the home, so this average rate may or may not be indicative of your situation. 

Foreclosure Rate in Q1 of 2024 

In the first quarter of 2024, 1 in every 1,628 homes experienced a foreclosure filing (according to recent data from ATTOM). Based on this data, Georgia’s foreclosure rate is on the higher end nationwide, meaning this does pose a bit of a problem and is something to keep an eye on. 

Hottest Local Markets in Georgia 

The Georgia real estate market has several noteworthy markets. Here are three of the most noteworthy: 

1. Atlanta

The capital of Georgia is the most populated city in the state. It’s home to a diverse population and a robust economy. Its rich history, vibrant nightlife, and wide-ranging food options make it a desirable destination for lots of people. 

The Atlanta real estate market has been on fire for years. Economists believe changes are on the way, though. They think the high prices will continue to soften. Realtors, on the other hand, disagree. Moderate weather combined with abundant job opportunities means this is an in-demand market. 

What is certain about Atlanta is that it’s generally more expensive to live there than the rest of the state. A large reason for that is that inventory continues to decline. In the Atlanta metro area, available inventory fell 33.7% from summer of 2022 to summer of 2023. According to Redfin, the median home price is $429,990 as of May 2024. 

Residential constrution permits (on single-family homes) rose from May to July after experiencing decreases throughout most of 2022. Atlanta was voted first on NAR’s “Markets to Watch in 2023 and Beyond.” This is a place people want to live, so it will be fascinating to keep an eye on it. 

2. Savannah

Savannah is a quintessential southern city in Georgia. It’s the eldest city in the state with a population of around 150,000. It’s known for pristine parks, old southern architecture, and lots of history. 

The real estate market is fairly competitive with home prices rising 6.7% compared to last year. The number of homes sold is also up 7.2% from last year.  

3. Athens

This busy college town boasts a rich artistic and musical heritage. The University of Georgia is the largest college in the state. Athens isn’t just for students, though, the music scene attracts plenty of visitors and out-of-towners.  

The median home price in Athens as of May this year was $360,000, which is 9.8% greater than last year. Athens has a DOM of 29 days, which means houses go quicker than in many other parts of Georgia. Thus, the city is more of a seller’s market. 

Factors Impacting the Georgia Housing Market 

Georgia’s market is influenced by macroeconomic trends and more granular economic factors specific to the state. 

Mortgage Rates 

High mortgage rates are a continuing difficulty for would-be homeowners in the United States. Georgia’s average rates for 30-year mortgages in June of 2024 are right around the national average at 6.97%. Higher interest rates deter borrowing and discourage those who already own homes from putting their homes on the market. Many homeowners across the nation report feeling “tied” to their current homes, as it is unlikely they will secure a mortgage rate as low as their current one if they move to a new property. Prospective buyers in Georgia would be wise to monitor mortgage rates in the coming months for a better understanding of how they impact the housing market. 

Inflation and Cost of Living 

Mortgage rates relate directly to inflation, another massive contributing factor to the affordability of housing and the status of housing markets in general. Inflation has increased the cost of living for many across the U.S., including in Georgia. This means fewer people can truly afford to limit housing costs to less than the recommended 30% of their monthly income.  

Population Changes and Demographics 

Georgia is the eighth most populous state in the country. Its population has grown over 2% from 2021 to 2023. Its addition of 116,000 people was the fourth-most in the nation behind Texas, Florida, and North Carolina. 

Per more data from the Census Bureau, Georgia is seeing the most migration over its borders from states like Florida, California, and Texas.  

Economic Health 

Georgia’s economic growth is lower than the United States average. In Q3 of 2023, the real gross domestic product growth rate for GA was 4.5%. For context, Florida (a similar size to Georgia but a little smaller) had a GDP growth rate of 6.1%.  

The top contributing sector to Georgia’s GDP was Real Estate, Rental, and Leasing. The residential growth rate was 34th in the nation, but the building permits growth was first in the nation. 

The unemployment rate is 3.1% in Georgia, according to the Bureau of Labor Statistics, which is below the national average of 4%. 

Georgia Housing Market Forecast 

Extensive demand mixed with a small growth in supply could signal some potential opportunities coming soon in the market.  

Most experts believe Georgia will see a continued increase in housing prices, though. Thus, the outlook points to a sellers’ market for the foreseeable future.  

Likelihood of Georgia Housing Market Crash  

Most experts don’t see a crash anytime soon for the GA housing market. As supply continues to increase and interest rates decline, the market should stabilize a little bit. Demand still outpaces supply, and that doesn’t seem likely to change soon. 

Georgia is somewhere towards the middle when it comes to affordability. Tradingpedia created a map showing home affordability with personal income as a percentage of median home price (the higher the percentage, the more affordable the state), and Georgia came in at 16.38%. For instance, nearby states Alabama (19.54%) and South Carolina (15.35%) sit barely on opposite sides of the Peach State. 

Forecast for The U.S. Housing Market 

Now that we’ve looked at Georgia’s housing market, let’s zoom out a little bit. What about the U.S. housing market? What do you need to keep an eye on in the coming years? 

The United States’s median existing-home sale price in April was around $432,812 per Redfin. The inventory, though, remains low. A balanced market typically has a five-to-six-month supply, but the current figure is two. 

We’re currently in a seller’s market with buyers looking at continued rising house prices. The same trend can be seen with renters. Housing continues to appreciate, in general.  

Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research, National Association of Realtors, believes the housing market will appreciate 15 to 25% over the next five years. He thinks that the seller’s market will continue because housing inventory will remain low. In five years, however, he predicts a more balanced market, in which neither party has a built-in advantage. Thus, the market will shift to a case-by-case basis to determine what kinds of deals people can get. 

Hybrid work also impacts the housing market. This shift in work culture means suburbia will continue to grow. States like Texas, the Carolinas, Tennessee, and Florida should see continual growth. 

The number of single-family homes built decreased over the past couple years while the number of multi-family homes increased due to lower prices and a demand for affordable housing. Higher mortgage rates and inflation (affecting price of materials) were the main causes.  

Lower income households continue to struggle in the current housing market. This trend appears likely to continue into the foreseeable future. Without enhanced supply or helpful subsidies, the outlook is that many Americans will still wrestle with housing affordability in the years to come. 

Georgia Rental Market 

The rental and buying market are obviously closely linked. When home prices fall, landlords are more likely to buy properties to rent out. Home prices and rental prices are correlated as well because a hot market means prices rise.  

Rents were more unaffordable than ever in 2021 and 2022. In 2022, 22.4 million households paying rent said it was unaffordable, which is the highest that figure has ever been, according to a January report from the Joint Center for Housing Studies at Harvard University. The study found that half of all renters in the United States spent over 30% of their income on rent and utilities.  

The markets cooled in 2023, though, due to new units and decelerating demand. But a serious problem persists: Rent increases are still outpacing income gains.  

Moreover, high interest rates are keeping borrowing and transaction activity down. Over half the banks surveyed by the Federal Reserve reported that demand for multifamily loans decreased year-over-year. 

The pandemic caused a housing disparity that isn’t going away anytime soon. Unaffordable housing is a serious issue across America. Whether high rents or low income is the main cause doesn’t change the fact that this problem is widespread.  

Georgia’s current rental market is influenced by these trends, but not dominated by them. Below are just a few of the current trends (as of June 2024) for Georgia’s rental market based on data pulled from Zillow: 

Georgia Rental Market Key Trends 

• Median rent: $2,000 (note: This is right around the national median of $2,132 as of June 2024) 

• Month-over-month rent change: +$1 

• Year-over-year rent change: +$5 

• Available rentals: 19,647 

On average, Georgia isn’t overly affordable or overly expensive compared to the rest of the country.  

Conclusion 

The Georgia housing market in 2024 is marked by a blend of stability and challenges, making it crucial for potential buyers and sellers to stay informed about market trends. Whether you’re looking to purchase a home soon or sell your property in GA, the macro- and micro- economic trends outlined above will impact your decision-making. Market dynamics like changes in home prices, inventory levels, and interest rates will continue to be critical for stakeholders in local real estate.