Overview of Georgia
Georgia (GA) is one of the United States (U.S.) states, with a population of about 11 million. Its capital and largest city is Atlanta (AL), and has several urban cities. The state has attracted many people from other states and is one of the fastest-growing states in the country. Rohde (2022) states that the population in Georgia grows at about 14.4 percent and is expected to reach 17.7 percent by 2030 (Rohde, 2022). The state will continue to rank highly among people relocating from other states.
General Housing Situation in Georgia
The housing costs in Georgia are below the U.S. average, which makes it attractive to reside in and invest in real estate. The inflow of new inhabitants has increased competition and limited housing availability. There has been a continued rise in housing prices attributed to a limited supply of housing units amid high demand Rohde (2022). Therefore, reduced supply and rising demand for housing drive housing costs, given the net increase in house prices and rental charges.
Demand and House Prices in Georgia
Georgia experienced the highest demand based on the percentage of homes selling above the listing price in 2022. Posey (2021) shows that the highest percentage of homes sold above the listing price in the last five years was observed in May 2022 at 56 percent. The trend points to a highly competitive housing market in 2022. Posey (2021) notes that the price of a home in Georgia went up by 75 percent over the past five years. The median price of a home in Georgia in December 2022 was $344,000 compared to $223,000 in December 2017 (Posey, 2021). The lowest and highest median prices in the past five years were observed in January 2018 ($212,000) and June 2022 ($377,000), respectively (Posey, 2021).
Housing Inventory and Construction in Georgia
The housing inventory dictates the direction and pace at which the housing supply changes. It defines whether buyers have more or fewer options to choose from, the duration houses stay on the market, or the pace at which houses are old. According to Santarelli (2023), there were 35,155 residential homes for sale in Georgia in December 2022 compared to 48,696 in December 2017. The pattern shows a decline in the housing supply of slightly over 10 percent in Georgia. Therefore, buyers have fewer options to choose from compared to five years ago; it could be because homes could be selling faster upon listing. In June 2019, Georgia had the most homes on sale at 61,966. This marks a period before the coronavirus pandemic that significantly hampered the housing and construction sector leading to a decline in the number of housing units available.
Comparison with Dekalb County
DeKalb County is one of the most diverse counties in Georgia. It is a part of the Atlanta municipal area and is known for its urbanization, which impacts housing prices. In December 2022, DeKalb County housing prices were $237,000, up from about $147,000 in December 2017 (Santarelli, 2023). Dekalb has experienced an overall constant increase in house prices compared to Georgia. The median housing selling price in the county is lower than the average in the state of Georgia.
Comparison with Clayton
Clayton County is located in the north-central part of Georgia and is close to Atlanta, with a population of about 300,000. The median home selling price in Clayton was $343,000 in December 2022. The median house selling price increased from about $204,000 in December 2017. The peak median home selling price was in June 2022 at 380,000. The median housing selling price in the county is almost equal to the average selling price in the state of Georgia.
Comparison with Rockdale
Rockdale County is a suburban county located southeast of Atlanta, Georgia. It has a small population of about 87,000 people residing in a mix of single-family homes, apartment complexes, and rural areas. Housing prices have increased due to population growth, with the median house selling price increasing from $180,000 in December 2017 to $285,000 in December 2022 (Rohde, 2022). However, it is still more affordable compared to the median housing selling price in Georgia.
Comparison with Henry
Henry is a suburban county in Atlanta with a population of about 214,000 (Posey, 2021). The county has recently experienced a notable rise in housing development and construction due to its proximity to Atlanta. The rising demand for affordable housing options has caused the median house selling price from about $189,000 in December 2017 to $340,000 in December 2022 (Posey, 2021). The rise in new construction and home sales has resulted in a median selling price slightly lower than the average price in Georgia.
Comparison with Gwinnett
Gwinnett County is located in the urban Atlanta area of Georgia, with a population of about 936,000. It has a growing housing market, with the median house selling price increasing from about $225,000 in December 2017 to $389,000 in December 2022. Its median house selling price is above the median selling price in Georgia due to its location, strong job market, growing population, and high quality of life.
Conclusion
In general, Georgia is experiencing rising housing costs due to rising demand and reduced supply as the average cost of a home increased to $344,000 in December 2022 from $223,000 in December 2017 (Santarelli, 2023). DeKalb, Clayton, Rockdale, and Henry have lower average house selling price than state average while Gwinnett has a higher average selling price.
References
Posey, K. (2021). Should first-time homeowners buy in Georgia’s hot real estate market? Georgia Public Broadcasting. Web.
Rohde, J. (2022). The Georgia real estate market: Stats and trends for 2022. Learn.roofstock.com. Web.
Santarelli, M. (2023). Georgia housing market: Prices, trends, predictions 2022-2023. Norada Real Estate Investments. Web.