The Georgia housing market continues to be robust in 2023 by a combination of high demand, limited supply, and steadily increasing house selling prices. A study finds that Georgia has the most overpriced housing market in America. According to data from Florida Atlantic University, Georgia has the most overpriced housing market in the United States, with Atlanta topping the list.
Atlanta, Georgia's capital city, beats out multiple Florida cities, Charlotte, North Carolina, and Memphis, Tennessee, to take the top spot for 2023. The researchers used their own methodology combined with open-source data from Zillow and other providers. The data shows that homes in Atlanta are selling for more than 51% more than what they're worth, leading to a big difference between how much people are paying and how much the home is actually valued.
Read About: Atlanta Housing Market Trends
The study found that the average listing price in Atlanta was $357,677, but the expected home value was only $236,627. This means that if you're looking to buy a home in Atlanta, you could be paying over $100,000 more than the actual value of the property. There are several reasons why Atlanta's housing market is so overpriced.
One of the main reasons is the strong job market and the city's booming tech center. Atlanta is home to several large technology companies, including Google, Microsoft, and IBM. This has led to a large influx of people moving to the city for work, which has caused housing prices to skyrocket. Another reason why Atlanta's housing market is so overpriced is that the city is a popular destination for retirees and second-home buyers. Many people choose to move to Atlanta for its mild climate, low cost of living, and easy access to recreational activities.
Georgia Housing Prices And Forecast 2023-2024
According to Zillow, the average home value in Georgia is currently $311,254, which has increased by 3.9% in the past year. Homes in Georgia go pending in around 14 days, with 53.6% of sales under list price and 22.6% of sales over list price, as of March 31, 2023. Looking ahead to 2024, the MSA level forecast in Georgia indicates that home prices will continue to rise in most regions. Only Tifton, GA is expected to experience a decline of 0.2% by March 2024.
The Metropolitan Statistical Areas (MSAs) listed in the data are cities and surrounding areas with high and low forecasted growth rates in Georgia for 2024.
The highest forecasted MSAs for 2024 are:
Cedartown, GA: With a projected growth rate of 6.6% as of March 31, 2024, Cedartown is expected to experience the highest growth rate in Georgia. This growth could be attributed to the city's proximity to major highways and rail lines, which makes it an attractive location for businesses to establish a presence.
Thomaston, GA: Thomaston is expected to experience a growth rate of 6.4% as of March 31, 2024. This could be due to the city's location along major transportation routes and the presence of several large employers, which have helped to fuel job growth.
Toccoa, GA: Toccoa is forecasted to grow at a rate of 5.9% as of March 31, 2024. The city has a diverse economy with several major employers, which has helped to fuel job growth and attract new residents.
Summerville, GA: Summerville is projected to experience a growth rate of 5.2% as of March 31, 2024. This could be due to the city's location in the scenic foothills of the Appalachian Mountains, which has made it an attractive destination for retirees and vacationers.
Savannah, GA: Savannah is forecasted to grow at a rate of 4.5% as of March 31, 2024. This growth could be attributed to the city's thriving port, which has helped to fuel job growth and attract new businesses.
The lowest forecasted MSAs for 2024 are:
Tifton, GA: Tifton is expected to experience a decline in growth of -0.2% as of March 31, 2024. This could be due to the city's reliance on agriculture and the impact of changing weather patterns on crop yields.
Moultrie, GA: Moultrie is projected to experience a growth rate of 0.7% as of March 31, 2024. The city's economy is heavily reliant on agriculture, which has been impacted by changing weather patterns and market conditions.
Douglas, GA: Douglas is expected to experience a decline in growth of 0.9% as of March 31, 2024. This could be due to the city's reliance on manufacturing and the impact of automation on job growth.
Vidalia, GA: Vidalia is forecasted to grow at a rate of 1.2% as of March 31, 2024. The city's economy is heavily reliant on agriculture, which has been impacted by changing weather patterns and market conditions.
Dublin, GA: Dublin is projected to experience a growth rate of 1.2% as of March 31, 2024. The city's economy is heavily reliant on healthcare and education, which have helped to fuel job growth. However, the growth rate may be impacted by demographic changes and competition from other cities in the region.
Will The Georgia Housing Market Crash?
We continue to hear rumors of a market crash, but local data does not corroborate this at this time. We're not seeing any major home price decline or crash in the Georgia housing market just yet. There are certain factors that suggest that the market may remain strong. Georgia has a robust and diverse economy with industries such as logistics, film, and technology, which have been growing rapidly in recent years. The state also has a pro-business environment, low taxes, and a relatively low cost of living compared to other states.
Georgia is predicted to remain a top-ranked state and relocation destination. The flood of new inhabitants will increase competition and limit housing availability, making Georgia real estate even tighter. According to YouGov, Georgia is ninth on the list of all US states sorted from best to worst, according to Americans.
YouGov asked people to choose the better of two states in a series of head-to-head matchups. States were rated based on their “win percentage”, that is: how often that state won the head-to-head matchup when it was one of the two states shown. Georgia Two other destinations for warm weather and ocean coastlines landed in ninth and tenth place, respectively: Georgia (58%) and Texas (58%).
Over the past decade, the state has experienced significant population growth, with an increase of over 1 million people from 2010 to 2020, according to the US Census Bureau. This growth has been driven by a combination of factors, including a strong economy, a relatively low cost of living, and a warm climate.
The influx of new residents has put pressure on the housing market, particularly in cities such as Atlanta and Savannah. As more people move to Georgia, the demand for housing increases, which can lead to rising prices and a shortage of affordable housing options. This has made it challenging for some residents to find suitable housing, especially those with lower incomes.
Another factor that affects the housing market in Georgia is demographic change. The state has a growing number of young professionals and retirees, both of whom have different housing needs. Young professionals tend to prefer urban areas with easy access to amenities, while retirees often prefer quieter suburban or rural communities. This has led to a growing demand for both urban and suburban housing in Georgia.
In addition, Georgia's population growth has also been driven by a diverse range of ethnic and racial groups. This diversity has contributed to the state's vibrant culture and strong economy, but it also presents unique challenges for the housing market. Different ethnic and racial groups may have different housing preferences, which can affect the availability and affordability of housing in certain areas.
That being said, there are always risks and uncertainties in any housing market. Factors such as changes in interest rates, job losses, and a slowdown in the economy could potentially impact the demand for housing and cause prices to fall.
In conclusion, while there are some positive signs for the Georgia housing market, it is always important to be cautious and keep an eye on market trends. The strong economy and growing population make Georgia an attractive place to live and do business, but the limited housing availability and increased competition could make it challenging for some buyers.
Data Sources:
- https://www.zillow.com/ga/home-values/
- https://www.zillow.com/rental-manager/market-trends/ga/
- https://fred.stlouisfed.org/series/ACTLISCOUGA#
- https://www.rent.com/research/average-rent-price-report/
- https://www.worldbank.org/en/country/georgia/overview
- https://www.adb.org/news/georgia-economy-grow-3-5-2022-adb
- https://www.georgia.org/demographics
- https://www.zillow.com/research/data/
- https://business.fau.edu/executive-education/housing-market-ranking/housing-top-100/
- https://today.yougov.com/topics/travel/articles-reports/2021/04/13/us-states-ranked-best-worst-according-americans
