Alabama Vs Georgia: Which Is The Better State?

Deciding where to raise your family, spend your retirement, or launch your career is a tough choice. Each state has pros and cons that must be weighed carefully. In the last few years, the Southern states have reported serious migration. In fact, Georgia was a top state for net migration in 2022. But what about its next-door neighbor, Alabama? Does it have the same perks but maybe a better cost of living?

No doubt Alabama and Georgia offer advantages, and since they’re beside each other, people may think they’re pretty similar. Let’s see if this is the case or if one might be the better state for you. We’ll examine some criteria in cost of living, economy, real estate, and lifestyle between these two states.

Cost of living

Sperling’s Best Places presents a standard for measuring the cost of living, with 100 as the national average. Any scores above 100 show that an area is more expensive, while anything below means it costs less to live there.

When it comes to overall affordable living, Alabama rolls over Georgia, especially when it comes to housing costs.

Georgia has an overall score of 93.4, about 10% more than Alabama’s 84.1. So, on average, living in Alabama is more affordable than living in Georgia, even though you may spend more on healthcare.

Notably, Alabama’s population is half of Georgia’s, which may explain why living here is cheaper. There’s less demand for goods and services.

Also, keep in mind that these are big-picture figures for the state. Parts of Alabama are more expensive than these figures, and some areas of Georgia are definitely more affordable.

*Based on January 2023

*Based on 2022

Population growth

As we mentioned before, Georgia clearly has more residents than Alabama. It ranked as the eighth fastest-growing state in the country in 2021, with a 21% growth rate.

The more densely populated an area is, the more it benefits the economy and provides access to more facilities. Conversely, it raises the prices for goods and services, real estate, and overall higher living expenses.

From 2010 to 2020, Georgia added 1.1M residents for 10,711,908 people. Georgia residents tend to be younger, with an average age of 36.9, and its residents have more diverse representation. Its most populated counties were concentrated around the Atlanta metro: Fulton, Gwinnett, DeKalb, and Cobb Counties.

Alabama is growing, albeit at a slower pace. From 2020 to 2022, the US Census estimated it grew by 1% to 5.07 million residents. The average age of an Alabama resident was 39.2.

Alabama’s most populated counties were concentrated around its major cities: Birmingham, Huntsville, and Montgomery. Even so, Jefferson County only had 672,500 residents in 2021.

Real estate

Both states have varied real estate options. You can live in a busy downtown core, affordable condo, on the coastline, or homestead on a farm. The states have golf course communities and active living centers.

Georgia’s median price for 2022 was $339,900 for the whole year. That figure was up 15.2%, even as overall sales were down 15.4%. The state had a 1.8 months supply of inventory for existing homes.

The top markets with the most change in median sale prices were Buckhead, Easthead, and Downtown Atlanta/Grant Park. The areas with the most activity in closed sales were Macon and Avondale Estates.

Alabama may be your best bet to buy a home if you want your dollar to stretch further in housing. Its 2022 median price was $228,434, a 7.4% year-over-year increase. So it’s more affordable yet also appreciating more slowly. Overall, home sales were down 17% year over year. The state had a 1.7 months’ supply of inventory for existing homes.

Outdoor Recreation

Both states have plenty of opportunities for outdoor recreation, but they offer different experiences.

Georgia’s 60+ state parks and national forests provide many opportunities to connect with nature wherever you choose to live. Popular spots include Chattahoochee-Oconee National Forest, Cloudland Canyon State Park, Stone Mountain Park, and the largest park in the state, F.D. Roosevelt State Park.

Cycling is popular around the Atlanta metro, with miles of bike trails, including the Silver Comet Line, Atlanta BeltLine, Six-Gap Classic, and Sylvania Cruise.

For those who enjoy lake life, Georgia offers over 15 lakes, including Lake Lanier, the state’s largest artificial lake. The Chattahoochee, Savannah, Oconee, and Altamaha rivers provide fresh water to the lakes in Georgia. Its many waterways offer world-class whitewater rafting, fly fishing, and other water activities.

And with access to the Atlantic Ocean in southeastern Georgia, residents also have saltwater and deep-water fishing. Plus there are facilities for sailing and yachting.

Alabama’s no slouch for what you can do outdoors, too. You can participate in all kinds of activities, from the Gulf Coast with its rich fishing waters up to the rolling Appalachian Mountains in northwest Alabama. The state does strongly appreciate its outdoors, as recreation jobs add more to the economy than auto manufacturing!

The state runs 22 state parks over 48,000 diverse acres. That doesn’t include the ample wildlife preserves and forested lands. In William Bankhead National Forest, the longest natural bridge in the Rocky Mountains stuns visitors with its 148-foot span. Birdwatchers come for the Alabama Coastal Birding Trail. Spelunkers get underground, as the 1.3-mile Cathedral Cavern and the Majestic Caverns are open for guided tours. Connect to the Appalachian or Eastern Continental Trail through the 337-mile Pinhoti Trail. It’s one of the many challenging trails for hiking in the state.

Education

The clear winner in education between the two states regarding public school systems is Georgia in the US News and World Report. Alabama’s education system came in no. 47 in the nation, with public K-12 schools as the no. 45. Georgia broke the top half, coming in at no. 16 in 2022.

That doesn’t mean you can’t find great schools, as both have top-ranked high schools on US News and World’s evaluation. Explore a few of Alabama’s top school districts and Georgia’s top districts.

Both states are working hard to keep improving their state’s quality and access to quality education. Each allows for county-based and municipal school systems. However, Georgia no longer allows new city-based school systems to be formed. Existing systems are grandfathered in.

Remember that Georgia is a much more populated state, which accounts for higher student numbers, schools, teachers, and districts.

*Figures are from 2021-2022, except the graduation rate, which is from 2020.

**Figures are from 2020-202, except the amount per student, which is 2022.

For Georgia’s higher education, which the report ranked no. 19, well-known colleges are Emory University, Georgia Tech, and the University of Georgia.

Alabama has numerous universities and colleges, too. Its system ranked no. 39. Auburn University broke into the nation’s top 100, while other top-tier colleges on US News and World were Samford University and the University of Alabama.

City Living

Both states have a reputation for being more rural, but if the urban lifestyle is more appealing to you, don’t worry. Its small and large cities deliver the culture, dining, entertainment, and economic amenities you expect in an urban area.

Atlanta is Georgia’s capital and largest city, offering residents a wealth of job opportunities. It’s by far the most extensive metro between the two states. As a hub for business, travel, and culture, it’s center for historical museums, live music venues, outstanding restaurants, and professional sports teams. Over six million people choose to reside in the greater Atlanta metropolitan area!

You can also check out the cultural center of Savannah, GA, closer to the coast, or the musical Macon, GA, in the central part of the state.

But if you want to live in the top city in the nation, Alabama wins, thanks to Huntsville. This northern city took the no. 1 spot in US News after being a top 10 city for several years. A thriving economy, affordable living, and intellectual capital make Huntsville appealing.

Alabama’s other significant metros include the capital, Birmingham, Montgomery, and Mobile. None of these cities are as large or dense as Atlanta, but they still have art museums, parks for the kids, and unique cultural attractions.

Climate

Georgia and Alabama share a humid continental climate. Get ready for steamy, hot summers and mild winters. The northern parts of the states will be cooler than the southern parts, which are closer to the coastal areas.

Thunderstorms with significant rain, wind, and lightning can pop up in minutes during the humid summers. Georgia experiences an average of 80 days of thunderstorms per year. Alabama is similar, with anywhere from 70-80 days per year. The Gulf Coast area tends to experience more.

Both states experience hurricanes, but coastal Alabama and Mobile Bay are considered more at risk. Wide tropical storms can still have significant impacts, even if they land to the west in Florida or the east in Louisiana and Mississippi. The low-lying coastal areas can be devastated by storm surges. Hurricane season typically runs from June 1 to November 30.

Real Estate Taxes

Alabama’s the winner for low real estate taxes. Only Hawaii is cheaper. Alabama has an average effective property tax rate of 0.46%, well under the 2022 national average of 1.07%. Homeowners in Alabama paid an average of $585 in property taxes. However, actual rates vary as they are set by the local county and depend on your home valuation. Residential taxes are assessed at 10% of a home’s value.

Meanwhile, Georgia property taxes are calculated at 40% of the property’s assessed value. Qualified homeowners can receive a $2,000 homestead exemption for their primary residence of the assessed value. The local Board of County Commissioners sets the annual tax rates, or mils. The term “mil” represents $1 per every $1,000 in value, or 0.001%. For perspective against Alabama, last year’s median tax rate in the state was 0.83%.

Taxes for Retirees

If you’re retiring and want an affordable place to live, both states have their merits. Georgia actually topped Bankrate’s list of the best states for retirees in 2021, thanks partly to economic factors like its generous tax regulations. Some of Georgia’s advantages:

• No tax on Social Security payments
• Individuals aged 65 and older have an up to $65,000 exemption on all types of retirement income.
• Some low-income individuals over 65 may qualify to double their homestead exemption.
• There is a special exemption for property values for individuals 62 and older and with lower income.

Alabama isn’t too bad, as it lands in the top half of many lists. Its high points are its housing affordability and generous cost of living. Unfortunately, access to quality and affordable health care tends to drop significantly. And with a high poverty rate, the quality of life can be more challenging depending on where you live. Some retiree-specific info:

• No taxes on Social Security benefits or pension income
• 401(k) and other accounts are taxed as income, which was taxed at 5%

Job Market

Georgia has a thriving economy built on a diverse background of industries. The state’s gross domestic product exceeds $600 billion, and it has 18 Fortune 500 headquarters,

Georgia’s tax incentives have captured the film industry, making it known as the “Hollywood of the South.” Many movie and television studios are filming or working in the greater Atlanta area. In addition, Georgia’s top industries include the agriculture, healthcare, retail, and manufacturing sectors. Georgia’s top employers are Grady Health System, Emory Healthcare, Hartsfield-Jackson Atlanta International Airport, Fulton County Schools, and Children’s Healthcare of Atlanta.

Alabama is in the bottom half of the national economic ranking but not the bottom ten. It actually has a solid manufacturing base in various parts of the state. That state’s GDP is $206 billion, which grew 0.9% from 2021 to 2022, placing it near the nation’s middle.

In northern Alabama, the aviation industry has a strong presence with manufacturers like Lockheed Martin and Boeing. Cummin Research Park is the second-largest technology park in the nation. It also has a major port in Mobile.

Sports

Hopefully, you like football! Both states have a strong passion for this sport, with iconic teams playing in the competitive SEC. The University of Alabama’s Crimson Tide won several national championships. Auburn and the Georgia Bulldogs are no slouches, either, with top-ranked teams.

Only Georgia has professional sports, and those are centered around Atlanta. You have the: Atlanta Falcons (NFL), Atlanta Hawks (NBA), Atlanta Braves (MLBA), Atlanta United FC (MLS), Atlanta Thrashers (NHL)

Alabama has minor league and semi-professional teams in soccer, football, basketball, and baseball across the state.

Culture

This part of the south is considered the “Deep South.” In some areas, you’ll find great pride in their southern roots, that iconic slow-rolling accent, and a love for family and barbeque. There is a rich musical tradition, as Alabama is the home of jazz, while Georgia has modern hip-hop and country superstars.

Georgia has many cultural experiences on hand. Visit the world’s largest aquarium, the Georgia Aquarium, or learn history at the Martin Luther King Jr. National Historic Site. Music lovers will be drawn to the Grammy Museum Atlanta and the acts that stop by the Fox Theatre while on tour.

Alabama played a central role in the Civil Right Movement, and its landmarks are preserved in the many museums and historical monuments across the state. But you also have some interesting one-of-a-kind centers, like the US Space and Rocket Center and the Barber Vintage Motorsports Museum.

Choosing between Alabama and Georgia

If a slower pace of life, friendly people, and affordable cost of living sound appealing to you, Alabama or Georgia tick those boxes. Each state has enough community variety to have a culture that fits your needs. Alabama will be less dense, with more small cities and a lower cost of living. Thanks to bustling Atlanta, Georgia has the largest urban center, but away from the core are also affordable places to live. Really, you can’t go wrong with either.