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Georgia Market Overview: Where is the Market Moving? by Labrescia Dawson.
Georgia market overview: Where is the market moving?
By Labrescia Dawson
Georgia is also referred to as the peach state. It is in the south-eastern parts of the United States, and its capital is Atlanta, a metropolitan city with over six million people. The total population in Georgia is over ten million. Georgia is among the states with low living costs, and the real estate market is slightly lower than that of the United States. It is essential to note that it is the eighth most populated state in the whole U.S
REAL ESTATE MARKET OVERVIEW FOR GEORGIA MEDIAN HOME PRICES
Georgia is a seller market as more people are willing to buy a home than the available number of houses. Today the cost of a home goes in Georgia is approximately $262,710. The price is higher than ever in the state; however, slightly lower compared to the rest of the United States. The high home prices in Georgia are associated with the obstacle of price variance over the last decade. For instance, the home prices in Georgia in 2012 were slightly above $105,000, and today the home prices have risen by over 140% to the current price. Consequently, home prices in the United States rose 7% in the last ten years. The tremendous increase in prices over the previous ten years is due to the growing economic strength in the area, availability of jobs, and high inventory levels.
MEDIAN RENT PRICES
The median rent prices in the last 12 months increased by over 22% and now ranges at around $1,345.In recent years the high real estate market restricts many people from buying homes, leading them to settle in rental homes. At the same time, the rental market faces high inventories compared to the surpassing number of renters flooding in, and thus, landlords have more power resulting in frequent increases in
prices. Also, it is worthwhile noting that the rental market prices for Georgia are slightly higher than those of the whole of the U.S. and that as long as there are high inventories, renters will always justify high rental charges.
GEORGIA’S REAL ESTATE MARKET FOR INVESTING
Investors focus more on distressed properties so that they can fetch higher prices. Buying a distressed property is a win-win situation for both the buyer and seller. Investors also mainly focus on creating rental structures since the area has more people willing to rent. Investing in Georgia is also very favorable due to the low-interest rates on mortgages which range at about 2.9% for a 30-year payment plan. It shows that for an investor in the real estate market, one can pocket more money while still paying for the mortgage.
GEORGIA’S MARKET PREDICTIONS
The real estate market for Georgia depends on various items; however, soon;
SECONDARY CITIES WILL RECEIVE MORE ATTENTION.
The Covid 19 pandemic brought new strategies that were previously not used. For instance, it is possible to maintain a job while working from home. With that in mind, most residents move from the high-cost area in Georgia to more remote areas such as Warner Robins. Investors are foreseen to put more concern in such sites.
HOME PRICES WILL GO UP
Georgia is expected to have a home price increase in the following years. There are still more buyers in the market, and the inventory levels are tight. Thus most homeowners take advantage of the situation by escalating the prices, and until inventory levels lower, home prices will remain high.
Other drivers of the real estate market in Georgia are;
INCREASED JOB OPPORTUNITIES
Job opportunities grew by almost 50% since 2021 and 1.17% since 2020. The GDP of Georgia is more than $600 billion. Today the state has a labor force of more than 5 million people and barely 5% of unemployed people. Employment opportunities in Georgia come from transport employing over 300,000 workers, and other big companies such as coca cola, technology, and real estate.
QUALITY OF LIFE
Georgia’s quality of life is ranked the best place to work and live in the whole of U.S by the U.S news and world report. Proper infrastructure, fiscal ability, a suitable economy, and good living conditions lead to a robust real estate market.
TOURIST ATTRACTIONS
Georgia has beautiful attraction sites such as the Okefenokee swamp, romantic antebellum squares of Savannah, the exquisite architecture of Savannah, and the mountainous landscapes of Georgia. Such attraction sites increase shortterm rental prices since the state is prone to receiving both international and local tourists.
POPULATION GROWTH
In recent years Georgia experienced population growth whereby between 2020 and 2021, there was about 114,000 new resident in the state. With that rate, it prospects that by 2030, there will be over 1 million more people in Georgia. Population increase indicates that the housing market will remain strong since the number of people increasing is far more than the number of houses built.
In summary, the home value in Georgia will rise higher for the next several years. The rental market is strong, and the trend will remain for several years. Investors have the chance to put their money in the real estate sector, especially the rental market and are sure to make good profits.
INTRODUCTION
CAL-ALHFA (California Association of Local Housing Finance Agencies) was established in 1989 to represent local housing agencies and professionals in the California State Legislature and State housing programs. We also work on housing issues at the federal level. CAL-ALHFA is a non-profit organization with a broad-based membership including public and private agencies that develop, finance, and administer programs to create affordable housing in California. Our core membership is small and medium sized local agencies that have to follow state mandates, but often lack the personnel and financial resources to do so.
PURPOSE
From the beginning, the founders of CAL-ALHFA felt that local government agencies interested in affordable housing matters needed better representation at the state level because their concerns were often not addressed in the development of single family and multifamily housing programs and policies.
The purpose of CAL-ALHFA is to provide that representation, based on input from all our members, including our lenders, investors, developers, and consultants. It includes participation in the California State Legislature’s legislative process and participation in program and policy development in all the State’s affordable housing agencies.
ONGOING ACTIVITIES
▪ Legislative Advocacy. Sponsoring, supporting (or opposing), and tracking housing legislation including fair housing; bond financing; state program development and administration; relocation; land use law, including planning and zoning; housing element law; and other legislation which affects affordable housing development.
Program Advocacy. Tracking program developments in CalHFA, HCD, the Tax Credit
Program, and the Debt Limit Allocation Program. Assisting in the development of program policies and procedures. ▪ Education. Sponsoring webinars, conferences, symposia, and workshops to provide information on new developments in the field of affordable housing.
▪ Newsletters and Legislative Alerts. Preparing and distributing regular newsletters and as-needed legislative alerts to inform members of current activities. ▪ Individual Member Services. Providing advocacy and advice on district or agency matters as requested. ▪ Professional Networking. Providing a forum for industry activists to share ideas, information, and expertise with their colleagues.
RECENT ACTIVITIES
Return to the Capitol – April 2022
For the first time since 2020, advocates can attend legislative hearings in person, and testify on bills of interest to the affordable housing community.
We can now meet our colleagues face-to-face on an impromptu basis. In other words, we now have a lobby in which we can do our work as lobbyists.
Middle Income Housing Webinar – November 2021
Bond Purchase of existing market rate multifamily housing and converting them to lower rent middle income (workforce) housing.
Presentations included:
Discussion of the pros and cons of this program Examples of successful conversions Potential legislation needed.*
*AB1850 – Ward. Establishes minimum standard for JPA acquisitions and is currently moving through the legislature. CAL-ALHFA is a supporter of this bill, which was at least partially written on the recommendations that came from this webinar.
Single Family Symposium – October 2021
Discussions included:
Increasing Minority Homeownership with a presentation by The Power Is Now Innovators in Down Payment Assistance Rural Broadband Expansion Closed Loop Pump Storage – Wildfire / PSPS Prevention
CAL-ALHFA Annual Meeting – October 2021
Keynote Speaker – Senator Scott Weiner
Discussions Included:
State Programs Update Legislative Update
UPCOMING
Density Bonus Webinar – May 18, 2022
Following a presentation by leading density bonus expert Jon Goetz, two cities, the City of Pasadena and the city of San Jose will describe how they developed their density bonus ordinances and how they administer them.
Cosponsored by The Power Is Now, the Symposium will cover all aspects of minority home ownership programs, updates on Fair Housing activities, and presentations by state, regional and local homeownership programs.
CAL-ALHFA’s Annual Meeting summarizes the major events of the year in Sacramento, and features key State legislators, Senior Staff from all major housing agencies, and a discussion of future legislative actions, presented by the Chief Consultants of the Senate and Assembly Housing Committees
