Georgia, known as the “Peach State”, is located in the Southeastern region of the United States. It is home to around 10.7 million people and is considered the eighth-most populated state in the country. The capital of Georgia is Atlanta, which is also the state’s largest city. The Atlanta metropolitan area has a population of over 6 million people, which covers more than 56% of Georgia’s entire population.
Georgia Real Estate Market Overview
Georgia is one of the states with housing costs that are below the U.S. average. It also has low taxes and a generally affordable cost of living. These are a few of the reasons why it’s good to invest in the Georgia real estate market. In fact, the Georgia housing market forecast 2022 shows that there will be a strong renters’ market this year—this is most likely due to the lower rate of job cuts compared to other states amidst the COVID-19 crisis.
Despite the pandemic, the economy in Georgia is expected to grow by 4% in 2022. According to The Atlanta Journal-Constitution, while Georgia won’t reach its pre-pandemic job levels anytime soon, the state should see bigger boosts from construction and the automotive industry. This will increase job opportunities, which is the reason why the demand for rental properties in Georgia is expected to rise. Because of this, investing in real estate—especially in Georgia rental properties—is a good idea.
2022 Georgia Real Estate Market Statistics
According to the Georgia Realtors data as of November 2021, the Georgia housing market statistics show that the median sales price increased by 19% year-over-year, new listings were up, but the days on market shrank by 30% to 28 days and the months’ supply of inventory decreased by 28% to around 1.3 months.
Georgia Housing Market Indicators as of November 2021
- New Listings: 13,007 (up by 4%)
- Pending Sales: 12,201 (up by 0.1%)
- Closed Sales: 12,762 (down by 1%)
- Inventory levels: 18,774 units (down by 24%)
- Median Sales Price: $315,000 (up by 19%)
- Average Sales Price: $370,698 (up by 17%)
- Days on Market: 28 days (down by 30%)
- Months Supply of Inventory: 1.3 months (down by 28%)
Based on these indicators, our Georgia housing market forecast 2022 shows that homes are selling quickly and at a steady pace. The strong demand and low inventory help to ensure that the Georgia real estate market will remain competitive especially in 2022 and for some time to come. Home sales activity in Georgia is expected to remain strong despite the continuous increase of sales prices and the ongoing uptrend of interest rates.
For the 12-month period from December 2020 through November 2021, overall sales in the state of Georgia were up by 6.5%. The price range with the strongest sales was the $300,000-and-above range, where there is an increase of 35.3% in sales. The bedroom count with the strongest sales is the one-bedroom property, where there is an increase of 28% in sales. Townhouses and condominium units are the property types with the strongest sales, where an increase in sales of 35.1% is noted.
Single-family homes are the property type with the largest price gain, where prices soared by 18% to $295,000. The price range that tend to sell the quickest was the $200,000 to $299,999 range at 23 days, while the price range that tend to sell the slowest was the $124,999 or less range at 56 days.
The inventory levels were down by 23.9% market-wide. The inventory for the single-family segment decreased by 27.6%, which amounts to 1.1 months’ supply. The inventory for the townhouse and condominium segment decreased by 36.1%, which amounts to around 1.5 months’ supply.
The Georgia housing market forecast 2022 shows that the days on market decreased for all price ranges. Median Sales Price increased for all property types regardless of bedroom count.
Inventory was down across all housing types, regardless of price. One-bedroom townhomes/condos saw the largest decrease at 44percent.
Drivers of the Georgia Real Estate Market 2022
In general, the Georgia housing market has recovered smoothly. Despite the pandemic, the Georgia economy and its residential real estate market are expected to perform well in 2022 and beyond. There is a steady increase in housing demand, especially for rental properties in Georgia. Because of this, home prices have been skyrocketing in 2021 and it’s expected to continue at a steady pace, making Georgia a great place for real estate investment.
There are several reasons why Georgia real estate is booming based on the Georgia housing market forecast 2022. Here are some of the drivers of the Georgia real estate market:
1. Population Growth
The higher the population, the greater the demand for residential properties. This is the reason why the steady increase in Georgia’s population is a driving factor that makes the Georgia housing market strong, based on our Georgia housing market forecast 2022. Georgia’s population has increased by around 114,000 residents from 2020 to 2021. This is projected to grow by another 1.1 million between now and 2030.
In 2019, Georgia has a population of 10.62 million people. This grew to 10.7 million in 2020—the population growth rate is around 10.6% since 2010. By 2030, the projected population of Georgia will be nearly 12 million people. Georgia is expected to be home to almost 13 million people by 2040.
To make money in real estate, consider investing in one of the largest metropolitan areas in Georgia:
- Atlanta, with 6.1 million people
- Augusta, which is home to around 611,000 people
- Savannah, with a population of nearly 405,000s
- Columbus, with more than 328,000 residents
2. Job Opportunities
While Georgia has been adversely affected by the pandemic, it did not suffer ruthless job cuts compared to other parts of the country. In fact, the GDP of Georgia, which is estimated at $623 billion, has grown by about 49% since 2010. Jobs increased by 1.17% since 2020. Full economic growth and recovery are expected mid to late this year as COVID-19 vaccines become widely available.
According to the Bureau of Labor Statistics, Georgia has a labor force of 5.1 million and an unemployment rate of just 3.1%. Georgia’s diversified economy is powered by small and large businesses in finance and insurance, manufacturing and transportation, technology and logistics, as well as real estate. Georgia is also the headquarters for Delta as well as big companies such as Home Depot, UPS, Coca-Cola, and Aflac.
Companies in Georgia employ 380,000 workers in transportation and material moving, 315,000 in production, and nearly 150,000 in computer and mathematical occupations. Georgia is also home to 52,000 software developers and programmers, 44,000 engineers, and 21,000 computer and information analysts. According to the Georgia Department of Labor, it is expected that Georgia will have thousands of new job openings in the STEM careers of science, technology, engineering, and mathematics over the next few years.
Based on the Georgia housing market forecast 2022, the Peach State will see bigger boosts in housing construction and benefit from automotive industry gains. Georgia, specifically the metro Atlanta, will benefit from strength in transportation, logistics, and e-commerce. The real estate market in Georgia is expected to keep growing due to the number of jobs in Atlanta. Around 1.2 million jobs are expected to be added to the Atlanta metro area by 2050.
Even as some industries have shifted to online alternatives, employment rates are still expected to rise as the state recovers from the pandemic.
Here are the top 10 industries that are expected to have the most immediate job growth in Georgia, according to the Georgia Department of Labor:
|Industry||2020 Base Employment||2022 Projected Employment||Employment Change|
|Ambulatory Health Care Services||233,790||247,590||13,800|
|Professional, Scientific, & Technical Services||269,280||279,260||9,980|
|Food Services and Drinking Places||388,430||398,250||9,820|
|Management of Companies & Enterprises||90,590||98,880||8,290|
|Warehousing & Storage||59,300||66,310||7,010|
|Accommodation, including Hotels & Motels||47,750||54,220||6,470|
|Couriers & Messengers||29,570||35,670||6,100|
|Administrative & Support Services||307,750||313,330||5,580|
|Insurance Carriers & Related Activities||76,110||80,160||4,050|
3. Increase in Rental Demands
Real estate investors should consider investing in Georgia rental properties, given there is an expected increase in rental demands as shown in the Georgia housing market forecast 2022. Several cities in Georgia were ranked as among the fastest-growing places in the country, including Atlanta, Sandy Springs, and Athens-Clarke. The steady growth in population, as well as an improving economy, are keeping the Georgia real estate market strong and the demand for Georgia rental properties high.
Based on Mashvisor data as of December 2021, the average traditional rent in Atlanta is $2,417 per month, while Augusta has an average rent of $979 and Savannah has an average monthly rent of $1,349. Rents in these three largest Georgia metropolitan areas have increased between 14% and 25% year-over-year.
36% of the housing units in Georgia are occupied by renters, with single-family homes accounting for the largest share of rented housing units. Most renters are young families who are just starting out, young professionals, and students. Job growth and nearby universities and colleges are among the reasons why the Georgia rental market remains strong.
4. Tourist Attractions
Georgia is known as a state of many contrasts, which makes it an especially appealing place for both local and international tourists. Most tourists that come to visit Georgia would want to see various attractions including Georgia’s mountain landscapes and natural features, such as the Lookout Mountain and the Okefenokee Swamp. Others are interested to see the romantic antebellum squares of Savannah and the dazzling modern architecture of Atlanta. These attractions are one of the drivers of the Georgia real estate market, especially for short-term rentals.
5. Quality of Life
Georgia has a rich history that continues today as one of the most populous states in the United States. According to the U.S. News & World Report, Georgia ranks as one of the best states to work and live in. Georgia receives high ratings for infrastructure, fiscal stability, living opportunity, and economy—all of which are important factors that should keep the real estate market strong.
Atlanta, in particular, has a growing startup scene, which is strengthened by the Georgia Institute of Technology. Atlanta also is home to Morehouse College, Spelman College, and Emory University. The affiliated hospital, Emory University Hospital, ranks nationally in treatment for cancer, cardiology, and heart surgery, diabetes and endocrinology, geriatrics, neurology and neurosurgery, and orthopedics.
The state has six specialized training centers focused on advanced manufacturing, aviation, bioscience, cybersecurity, film, and fintech. Georgia is also known for its diversity and a perfect four-season climate—both of which help draw people to live in Georgia. This is one of the reasons why the quality of life in Georgia will help drive its real estate market, just as shown on the Georgia housing market forecast 2022.
Best Cities For Real Estate Investment In Georgia
When considering which cities are best to invest in, you should take a look at the demand for housing, as well as the amenities, job opportunities, convenience, and safety of the location. Additionally, the best cities to invest in are those that can give you a good and immediate return on investment on your properties.
Here are the best Georgia cities for real estate investment, based on our Georgia housing market forecast 2022:
1. Atlanta, Georgia
The best real estate investment market in the state of Georgia is Atlanta. Atlanta is home to more than 6 million people and this is expected to continue growing over the years, especially with the development in the city. Despite the crisis, the economy is rising and job opportunities are growing. The Atlanta housing market forecast shows that there will be an increase in rental demands, as well as properties for sale in the city.
- For-sale listings: 2,979
- Median Price: $577,226
- Average Price per Square Foot: $396.80
- Average Days on Market: 86
- Walk Score: 43
2. Winder, Georgia
Winder is a suburb located east of Atlanta and was one of the fastest-growing Georgia housing markets in 2021. Housing prices were up by more than 20% in 2021 compared to 2020. With the inventory down by around 15%, it is expected that the Winder real estate market to be competitive in 2022, which will be a great opportunity for real estate investors as the demand for housing soars.
- For-sale listings: 149
- Median Price: $335,049
- Average Price per Square Foot: $162.74
- Average Days on Market: 69
- Walk Score: 75
3. Norcross, Georgia
Norcross is located near multiple highways that connect it to Atlanta and its surrounding areas. It is located northeast of Atlanta and has a current population of around 17,000. In December 2021, Norcross home prices were up by around 35.4% compared to last year—prices are expected to increase continuously at a steady pace as indicated in our Georgia housing market forecast 2022.
- For-sale listings: 102
- Median Price: $339,767
- Average Price per Square Foot: $188.75
- Average Days on Market: 87
- Walk Score: 66
4. Augusta, Georgia
Home to around 611,000 people, Augusta is the second-largest city in Georgia. It is located on the banks of the Savannah River and the South Carolina border and is considered one of the best cities to live in Georgia. In Augusta, the cost of living is low, taxes are low, and the quality of life is generally excellent.
- For-sale listings: 199
- Median Price: $248,945
- Average Price per Square Foot: $132.32
- Average Days on Market: 84
- Walk Score: 31
5. Sandy Springs, Georgia
Another city to consider investing in is Sandy Springs, which is located in the suburbs north of Atlanta. It is the home to many large companies including Mercedes Benz and UPS, which provide job opportunities that help keep the Sandy Springs housing market strong. The Georgia housing market forecast 2022 shows that the real estate market in this city will continue to grow due to its job opportunities and limited housing availability.
- For-sale listings: 136
- Median Price: $580 875
- Average Price per Square Foot: $235.89
- Average Days on Market: 57
- Walk Score: 25
Invest in the Georgia Real Estate Market With the Help of Mashvisor
Based on the Georgia housing market forecast 2022, we can expect a good year filled with opportunities for Georgia real estate investors. If you’re ready to invest in the Georgia housing market, our Mashvisor database is available to help you find the right investment property. We provide complete market research and investment property analysis online.
To search for the perfect investment property, just type in your preferred city or neighborhood to get a quick overview of the houses for sale in that area. Click on the property that interests you to find a more detailed analysis of the median home price, return on investment, cap rate, and more.
Use our Mashvisor tools to help you analyze the market and check comparable insights. Click here to start searching for the best investment properties in your chosen city and neighborhood.