How Is the Housing Market in Georgia?

The housing market in Georgia presents a dynamic landscape influenced by various factors, from economic shifts to regional specificities. Understanding this market requires a look at statewide trends, localized conditions, underlying economic forces, and housing affordability.

Statewide Housing Overview

Georgia’s housing market experienced shifts throughout 2024 and into 2025. The median sales price for homes across the state saw an increase, reaching approximately $382,100 by July 2025, a 0.8% rise year-over-year.

Sales volume showed mixed trends. Closed sales were slightly up by 0.3% in 2024, but by July 2025, the number of homes sold declined by 4.5% year-over-year, to 11,134.

Housing inventory improved in 2024, with active listings increasing by 33.7% to 34,943 at year-end. New listings also rose by 15.8% to 193,260. Despite these increases, the overall months of supply for inventory remained relatively low, averaging 3.4 to 3.5 months in 2024, with some reports indicating 4 to 5 months by early to mid-2025. A balanced market typically has four to six months of supply, suggesting that while inventory improved, it still leans towards a seller’s market.

The average days on market (DOM) for homes in Georgia varied. By January 2025, homes were spending around 67 days on the market before going under contract. This extended time suggests a slight cooling in buyer demand and increased negotiation power for prospective buyers.

Regional Market Differences

Housing market conditions across Georgia are not uniform, with variations observed in metropolitan areas compared to other regions. The Atlanta metro area experienced an increase in available homes, with listings up more than 42% from December 2023 to December 2024. The median sales price in the Atlanta metro area was approximately $429,990 as of May 2024, higher than the statewide median.

Other regions also show unique trends. Savannah saw a 6.8% increase in its median home price, reaching $363,000 in 2024, while Columbus experienced an 8.4% increase, with its median price at $195,000. Athens, a university town, had a median home price of $360,000 in May 2024 and a median of 29 days on market, indicating a more competitive environment.

Rural areas and smaller cities may present different market characteristics, often with lower median home prices and potentially longer days on market compared to metropolitan centers. While specific data for all rural areas is not consistently aggregated, broader trends suggest demand remains concentrated in urban and suburban hubs. The increase in inventory observed statewide is particularly noticeable in some metropolitan areas, offering more choices for buyers. This regional disparity underscores that local conditions can vary significantly based on population density, economic activity, and available housing stock.

Economic Drivers

Several economic factors influence the housing market in Georgia. The state has experienced consistent population growth, particularly in its metropolitan areas. Between 2020 and 2023, Georgia’s population grew by 2.9%, with the Atlanta Metro area alone adding over 68,000 new residents in 2023. This influx of new residents directly fuels demand for housing, both for purchase and rent.

The job market in Georgia remains robust, contributing to the state’s attractiveness. Georgia has been recognized as a leading state for business for multiple consecutive years. In June 2024, jobs in Georgia grew by 1.3% year-over-year, indicating a healthy economy that supports homeownership and relocation. A thriving job market provides individuals with the financial stability needed to enter the housing market.

Interest rates play a substantial role in mortgage affordability and buyer demand. Throughout 2024, mortgage rates fluctuated, generally staying within the 6% to 7% range. Higher interest rates can reduce purchasing power for buyers, potentially leading to a slowdown in sales activity.

Supply chain issues have also impacted new home construction, although inventory has shown signs of improvement. While new listings have increased, ongoing challenges in construction, such as material availability and labor shortages, can still affect the pace at which new housing units come to market.

Housing Affordability

Housing affordability in Georgia is determined by the relationship between housing costs and median household incomes. The state’s median home price-to-income ratio stood at 4.4, which is lower than the national average of 4.7. This suggests that, on average, homes in Georgia are comparatively more accessible relative to local incomes than in many other parts of the country.

Despite Georgia’s overall growth, income growth has not always kept pace with the appreciation in housing prices. This disparity means that a larger portion of income is often required to afford housing, impacting both prospective homebuyers and renters.

The rental market in Georgia remains strong, especially in metropolitan areas with continued population growth. Demand for rental properties is expected to stay elevated, particularly in cities with major universities and job centers. While specific rental prices vary widely by location and property type, the general landscape indicates sustained demand for rental units.