The cost of housing in Georgia has been on the rise in recent years, making it increasingly difficult for residents to afford adequate housing. This trend is particularly concerning as it not only affects the ability of residents to secure stable and safe housing, but can also have long-lasting impacts on their overall financial stability and life quality. In this presentation, we will examine the increase in housing costs in five counties in Georgia over the past five years: Dekalb, Clayton, Rockdale, Henry, and Gwinnett. In addition, we will analyse the root causes of these changes, their consequences, affordable housing solutions, and best practices related to the issue in question.
Dekalb county
In the past five years, the average cost of housing in Dekalb County has increased by approximately 25%. In December 2022, the median cost of homes in DeKalb County was $332K, a decrease of 0.02% from the previous year. On average, homes in DeKalb County took 38 days to sell, longer than the 23 days it took last year. The number of homes sold in December of this year was 636, down from 1,156 in the same period the previous year.
Clayton county
Similarly, Clayton County has seen an increase of around 20% in housing costs over the last five years. This increase can be attributed to the county’s proximity to the city of Atlanta, which has driven up demand for housing in the area. During December 2022, the median sale price of homes in Clayton County increased by.0% from the previous year and reached $230K. Despite this, the number of homes sold in December 2022 decreased from 277 the previous year to 207. On average, it took 37 days for homes in Clayton County to sell, which is an increase from the 15 days it took the previous year.
Rockdale county
In Rockdale County, the average cost of housing has increased by around 15% over the past five years. This increase can be attributed to the county’s growing population and its close proximity to major job centers, such as Atlanta. It should be noted, however, that during December 2022, the median sale price of homes in Rockdale County decreased by 3.1% from the previous year, reaching $285K. Despite this, the number of homes sold in December 2022 decreased from 148 the previous year to 78. On average, it took 45 days for homes in Rockdale County to sell, which is an increase from the 18 days it took the previous year.
Henry county
Henry County has experienced a similar increase in housing costs, with an average increase of around 15% over the past five years. This can be attributed to the county’s location near major highways and its growing job market, which has driven up demand for housing in the area. It appears that during December 2022, the median sale price of different types of houses in Henry County increased by 4.4% from the previous year and reached $340K. In spite of this fact, the number of homes sold in December of 2022 decreased from 481 in 2021 to 310. On average, it took 46 days for homes in Henry County to sell, which is an increase from the 17 days it took the previous year.
Gwinnett county
Gwinnett County has seen the largest increase in housing costs, with an average increase of around 30% over the past five years. This can be attributed to the county’s proximity to major job centers, such as Atlanta, as well as its growing population and strong economy. As of December 2022, the median sale price of homes in Gwinnett County increased by 2.4% from the previous year and reached $389K. However, the number of homes sold in December 2022 decreased from 1,326 in the previous year to 820. On average, it took 44 days for homes in Gwinnett County to sell, which is an increase from the 17 days in 2021.
Root causes
The root causes of the increase in housing costs in these counties can be attributed to several factors:
- Population growth: As the population in these counties increases, there is more demand for housing, which leads to an increase in prices.
- Proximity to major job centers: Counties located near major job centers, such as Atlanta, tend to have higher housing costs due to the demand for housing from individuals who work in the city.
- Limited housing supply: If the number of homes available for sale is limited, the price of housing tends to go up. This can be due to zoning laws, lack of land to build on, and other factors.
- Economic growth: As the economy grows and individuals have more money to spend, the demand for housing increases, leading to higher prices.
- Low interest rates: When interest rates are low, it makes it easier for individuals to obtain mortgages, which can drive up demand for housing and lead to higher prices (“Why Georgia housing costs have exploded,” 2022).
Consequences
There is a number of consequences associated with the increase in housing costs in these counties.
- Affordability crisis: As housing costs increase, it becomes more difficult for residents to afford adequate housing, leading to a housing affordability crisis.
- Increased homelessness: When housing is unaffordable, individuals are more likely to become homeless or face housing insecurity, such as overcrowding or living in substandard conditions.
- Displacement: The high cost of housing can lead to displacement, as lower-income residents are forced to move out of the area in search of more affordable options.
- Reduced economic mobility: The high cost of housing can limit economic mobility, as individuals are unable to move to areas with more job opportunities due to the cost of housing.
- Widening income inequality: The high cost of housing can exacerbate income inequality, as individuals with higher incomes are able to afford housing, while those with lower incomes struggle to find affordable options (Fuhrmeister, 2022).
Affordable housing solutions
Affordable housing solutions related to the increased housing costs in Georgia can be divided into three groups.
- Incentives for Affordable Housing Development: Incentives such as tax credits, zoning changes, and fee reductions can encourage the development of affordable housing in these counties.
- Expansion of Rent Assistance Programs: Expansion of rent assistance programs, such as the Section 8 Housing Choice Voucher Program, can help low-income families afford housing in these counties.
- Community Land Trusts: Community Land Trusts (CLTs) are organizations that acquire and hold land for affordable housing developments. CLTs can provide affordable housing options in these counties while ensuring that the housing remains affordable in perpetuity (Fuhrmeister, 2022).
Community engagement
Finally, it can be argued that Community engagement is essential to address the rising housing costs in Georgia. Involving residents and community organizations provides valuable insights and supports affordable housing initiatives. Forms of engagement can include public meetings, surveys, focus groups, and community forums. This engagement helps increase transparency, accountability, and public trust in addressing the housing crisis.
References
Clayton County, GA housing market: House prices & trends. (n.d.). Real Estate, Homes for Sale, MLS Listings, Agents | Redfin. Web.
Community engagement | Brookline, MA. (n.d.). Brookline, MA – Official Website | Official Website. Web.
DeKalb County, GA housing market: House prices & trends. (n.d.). Real Estate, Homes for Sale, MLS Listings, Agents | Redfin. Web.
Fuhrmeister, C. (2022). Mortgage costs soaked up nearly 50% of income in DeKalb County in June. Web.
Gwinnett County, GA housing market: House prices & trends. (n.d.). Real Estate, Homes for Sale, MLS Listings, Agents | Redfin. Web.
Henry County, GA housing market: House prices & trends. (n.d.). Real Estate, Homes for Sale, MLS Listings, Agents | Redfin. Web.
Rockdale County, GA housing market: House prices & trends. (n.d.). Real Estate, Homes for Sale, MLS Listings, Agents | Redfin. Web.
Vesoulis, A. (2021). Salvaging the American dream: 6 new paths to Homeownership. Time. Web.
Why Georgia housing costs have exploded. (2022). Georgia Public Policy Foundation. Web.