Why Are Houses in Georgia So Cheap?

Cost of Living and Economic Factors

Georgia consistently offers a comparatively lower cost of living, which directly influences the affordability of its housing market. The overall cost of living index in Georgia is reported to be between 8% and 11% less than the national average. This includes expenses for groceries, utilities, and transportation, which are lower in Georgia compared to many other states. Housing costs specifically are estimated to be 13% to 22% lower than the national average.

The economic landscape in Georgia further supports these lower housing costs. The median household income in Georgia is approximately $74,664 per year. This figure is slightly below the national median income, which can temper the upward pressure on housing prices, as affordability must align with local earning capacities. The state’s unemployment rate is relatively low, around 3.4%.

Georgia’s job market is diverse, with significant sectors including trade, transportation, utilities, professional and business services, and healthcare. These industries provide a broad base of employment, contributing to economic stability and a balanced supply and demand for labor, which helps keep housing prices affordable.

Housing Supply and Development Trends

The availability of land for development plays a substantial role in maintaining housing affordability in Georgia. The state possesses ample undeveloped land, with roughly 200,000 acres currently listed for sale across various regions. This significant land supply reduces acquisition costs for developers, which can translate into lower final prices for new homes. The ease of acquiring land allows for a steady pace of construction, preventing supply shortages that often inflate home values in more land-constrained areas.

Construction costs in Georgia can also be a factor in housing prices. The average cost to build a house in Georgia ranges from $100 to $200 per square foot for standard builds. For builder-grade homes, this range extends from $150 to $270 per square foot. These figures can be competitive compared to construction costs in other parts of the country, allowing builders to deliver new homes at more accessible price points.

Building permits in Georgia involve a minimum fee of around $80, with additional costs often calculated per square foot. While regulations and permitting processes do add to construction expenses, the general environment supports consistent development. A continuous influx of new residential properties helps to meet ongoing demand and moderate price increases across the housing market.

Population Movement and Demand

Georgia has experienced consistent population growth, which influences housing demand, yet prices remain relatively affordable. The state’s population increased by approximately 0.935% between 2022 and 2023, reaching an estimated 11.1 million people in 2025. Projections indicate this growth will continue, potentially surpassing 13 million residents by 2060. This steady influx of new residents creates a continuous need for housing.

Domestic migration is a primary driver of this population increase. States like Florida, New York, and Alabama are common origins for those relocating to Georgia. While population growth increases housing demand, Georgia’s growth is more evenly distributed across suburban and exurban areas rather than being highly concentrated in a few dense urban centers.

This dispersed growth pattern helps to alleviate intense demand pressures on specific housing markets. The availability of diverse geographic options within the state allows for a broader absorption of new residents. Consequently, this distribution helps prevent rapid housing price appreciation seen in areas with concentrated population inflows and limited development.

Local Taxation and Regulatory Environment

State and local government policies, particularly concerning property taxes and building regulations, contribute to housing affordability in Georgia. Property taxes in Georgia are lower than the national average. The median real estate tax payment is approximately $1,771 to $2,048 per year, which is notably less than the national median. The average effective property tax rate in the state falls between 0.72% and 0.87%. These lower ongoing costs of homeownership can make housing more accessible.

Zoning laws and building regulations are determined at the local government level, leading to variations across different areas within the state. These regulations can impact the cost of housing by imposing requirements such as minimum lot sizes, home sizes, or specific architectural standards. While these policies aim to ensure quality and orderly development, they can add to construction expenses, with regulatory costs estimated to account for about 27% of the final price of a new single-family home in Georgia.

However, the regulatory environment in some areas may be less restrictive than in other states, or efforts may be underway to streamline processes. Less burdensome or more efficient permitting and zoning approvals can reduce development timelines and associated costs for builders. Such conditions support more affordable housing prices by mitigating administrative and compliance expenses often passed on to homebuyers.