ATLANTA — Georgia’s challenging housing market could have broader implications for the state’s economy as business owners report housing is making it more difficult to recruit and retain workers.
Georgia’s homeownership rate currently stands at about 64%, down from a peak of 72% in 2002. The state now ranks 39th in the nation for homeownership.
“That’s below the national average and indicates that not as many Georgia families are able to access home ownership and are able to participate which we know is an incredible wealth building strategy for families,” Georgia Chamber Foundation Executive Director Daniela Perry said.
Perry said housing has also become a persistent concern for Georgia businesses.
“Every year housing comes up as one of the top three issues impacting their ability to retain and recruit employees,” Perry said. “So we know that this is something that’s huge to making individuals successful in their jobs.”
Housing supply remains another challenge. Perry said Georgia is still dealing with the long-term effects of the Great Recession.
“We have had kind of significant challenges with rebuilding our housing stock following the Great Recession,” Perry said. “We’re really trying to rebuild our housing stock from so many of the long term effects of the Great Recession, and it’s kind of finding your new balance and new order to do that.”
Home prices are also a concern for potential buyers. Redfin puts Atlanta’s median home sale price at about $425,000, up about 1% from a year ago. Five years ago, the median sale price was about $384,000.
Mortgage rates remain elevated as well. Freddie Mac puts the average rate for a 30-year fixed mortgage at a little more than 6.6%. Federal data shows a typical metro Atlanta household spends about $2,300 a month on housing.
“We’ve got a huge housing challenge in Georgia,” Perry said.
The Georgia Chamber Foundation has put together a free resource guide for communities to consider as they develop long-term strategies aimed at improving housing options.
