Is Georgia A Good State To Buy A Home?

Are you considering buying a home in Georgia? The Peach State is quite an attractive option because of the many lifestyle advantages it offers potential homeowners. Its low cost of living, warm climate, and job market growth all play into why Georgia is one of the quickest-growing states in America. With perks like these, it’s no wonder why the population is expected to increase up to 17.7% by 2030!

More people are joining Georgia’s communities each day, from the high-rises of Atlanta to Savannah’s iconic public squares draped in Spanish moss– or one of the many other charming Southern towns scattered throughout. But is Georgia the right state for you to buy a home?

Our guide breaks down different factors relevant to buying a home in Georgia to help you decide if it’s right for you.

Georgia is affordable

When evaluating the cost of living, Georgia has comparatively low expenses compared to other states across the USA. This makes it an ideal location for those who want to buy a home without breaking the bank.

Georgia has an overall Sperling’s Best Places score of 93.4, about 7% less than the national average of 100. This means living in Georgia is slightly more affordable than in the rest of the nation. Housing costs were 20% below average, and groceries and health care were less expensive. However, Georgians tend to pay for more transportation and utilities.

Do remember this is an overview of living expenses averaged across the state. Atlanta will have a different profile than Columbus or Valdosta. In fact, Atlanta’s overall cost of living is 9% above the national average, with housing 14% above. Meanwhile, Valdosta is much cheaper, with its housing at 54% below the usual expenditure.

How much money do you need to live in Georgia?

This will vary widely based on where you live in the state and the size of your family. Just to give you a sense of what it could take, a single adult with no children would need to make $17.72 for a living wage that covers essential expenses. That comes out to $31,286 after taxes. MERIC data from the third quarter of 2021 found an individual would need $38,165 per year to live in Georgia.

A family of four with one adult working would need $67,685 after taxes. This family could expect to pay $11,564 in food, $13,448 in housing, and $14,484 in transportation.

Your housing costs could be from $885 to $1,417 per month, based on 2019 data. It’s likely higher now. Average utilities ran $410.11 per month, with gas going $141.49 monthly in 2021. Childcare for a single child could run from $781 to $1,091 per month.

Can you find a job in Georgia?

Georgia is a great place to buy a home if you want to launch or accelerate your career. The state has made national headlines for its record-breaking business growth. Georgia is the eighth largest economy in the United States based on its gross domestic product (GDP), producing $762 million in Q3 2022. The state expects to add over 500,000 million new jobs from 2018 to 2028.

It has over 27 Fortune 1,000 companies in the Atlanta-Sandy Springs metro area alone and over a dozen headquarters. Fortune 500 companies like Delta Airlines, The Home Depot, SunTrust, and Newell brands are headquartered in the state.

The state boasts strong healthcare, transportation, and manufacturing sectors. Some of Georgia’s most influential employers include Grady Health System, Emory Healthcare, Hartsfield-Jackson Atlanta International Airport, Fulton County Schools, and Children’s Healthcare of Atlanta. Healthcare and information technology are two of the fastest-growing industries in the state.

And, thanks to generous tax incentives, Georgia is now the “Hollywood of the South.” You’ll find movie stars and studios frequently in town or shooting in outlying areas.

Such varied opportunities and strong job growth provide individuals with abundant career choices.

Georgia’s real estate market is booming

Georgia’s real estate market is growing but still affordable compared to other states. According to the Georgia Realtors, the median home price in Georgia was $339,900 in 2022, up 15.2% from 2021. Single-family homes were up 16.7%, and condo prices were up 15.2% year-over-year. Keep in mind that the national median home price was $398,500, so Georgia is still relatively affordable for its housing.

Based on 2022 data, the state’s most expensive cities were Atlanta, Gainesville, and Jefferson, where the median prices ran above $300,000 for the year. In fact, four of the five areas with the greatest gains in median sales prices in 2022 were in the Atlanta metro region.

In Georgia, property taxes are assessed at 40% of the home’s value. Tax rates are set each year by the local County Board of Commissioners. The term “mil” refers to $1 for every $1,000 in value.

For some perspective, last year’s average effective rate was an incredibly low 0.83% statewide. In 2022, Georgia homeowners’ median payments of property taxes totaled $1,346 based on a house value averaging around $162,800.

Homeowners who qualify can receive a $2,000 homestead exemption for their primary residence.

Is Georgia tax-friendly?

Overall, the tax burden is middle of the road. Georgia does impose a sales and use tax of 4%, which is among the highest in the nation. Local jurisdictions can impose additional sales taxes. In 2022-2023, Clayton and Muskogee had the highest sales taxes at 9%, with Atlanta right behind at 8.9%. Statewide, sales taxes average 7.35%.

There are no estate or inheritance taxes in Georgia.

You do owe an individual income tax, which ranges from 1-5.75% based on your income level. The average collected individual income tax was $1,108.

What are the advantages of living in Georgia?

Besides its remarkable affordability, Georgia’s advantages include warm year-round weather, gorgeous natural scenery, vibrant entertainment, and a nightlife scene.

Starting with the scenery, the state is home to the Appalachian Mountains, which present some of the most beautiful landscapes in the country. The Chattahoochee River runs through Atlanta and borders Chattahoochee National Forest, offering various outdoor activities. Along the coast are miles of sandy beaches like the iconic Cumberland Island and Tybee Island. Play at the same world-class golf courses used by the professionals at Augusta National Golf Club or the Bobby Jones Golf Course.

The Peach State is home to top attractions, including the Georgia Aquarium, Six Flags Over Georgia amusement park, Stone Mountain Park, and Adventure Cove Waterpark.

Thanks to mild winters, you can enjoy these amusement parks and outdoor recreation year-round. North Georgia might see some light snow in the winter, but much of the state is snow-free.

Several major universities call the state home, like the nationally ranked no. 22 ranked Emory University, the no. 44 ranked Georgia Institute of Technology (Georgia Tech), and no. 49 ranked University of Georgia.

Georgia may be a top state to work in technology, says BestColleges finding. Big names like Microsoft, Google, and Apple are expanding in Atlanta, and large incubators and startups are fostering tech growth. Combined with the low cost of living and wage increases for tech workers, it’s a sweet deal.

Plus, many Georgia residents live within three hours’ driving distance from Alabama, South Carolina, North Carolina, Tennessee, and Florida and their attractions.

What are the disadvantages of living in Georgia?

The most significant disadvantage of living in Georgia is the state’s lack of a robust public transportation system. Once you get outside Atlanta, you’ll need a vehicle to get around. This can be a challenge for anyone who doesn’t like to drive or cannot drive.

The traffic in Atlanta is downright terrible, so if you’re driving to work or school in the city, prepare for a long commute. The city ranks as the tenth most congested in the US, and you’ll definitely see and feel the congestion during rush hours. Constant construction seems to be a way of life.

Some like it hot, but Georgia’s hot and humid summers aren’t ideal for those who don’t like the heat. That same sticky heat can create turbulent thunderstorms that drop heavy rains and vanish in an hour. Also, the southern parts of the state can experience tropical storm impacts as these storms hit the coastline and move inland, leading to flash flooding and wind damage.

What are some key places to live in Georgia?

If you’re interested in buying a home in Georgia, you have no shortage of great places to pick based on what you want.

Atlanta is the largest city, so it gets a lot of attention. It’s the state’s cultural and economic hub, home to its sports teams, Fortune 500 companies, music studios, several universities, and more. Atlanta’s so big it’s worth looking closer at its neighborhoods and suburbs.

Savannah is a picturesque coastal port city full of history and Southern charm. Its cobblestone streets are lined with majestic oak trees draped in Spanish moss and filled with boutiques, cafes, galleries, and other attractions.

In the north of the state is Marietta, a city known for its historic Civil War sites and museums. It’s also home to Lockheed Martin Aeronautical Systems and Kennesaw Mountain National Battlefield Park.

If you’re looking for a college town, Athens is one of the top choices. Besides being home to the University of Georgia, it’s also known for its vibrant music and art scenes.

Augusta is known for its world-famous golf course, numerous green spaces, and southern hospitality. It sits along the Savannah River on the South Carolina border.

Columbus on the Alabama border attracts outdoor enthusiasts for its access and affordable living. Residents have several nearby state parks and recreational areas ideal for hiking, bicycling, and fishing.

Centrally located Macon is a small college town perfect for those looking for a relaxed atmosphere, affordable houses, and a lively music scene. Plus, you can move around the state pretty easily, thanks to I-75.

Should you buy in Georgia?

Georgia is a great state for buying a home to raise your family, settle into retirement, or launch your career. With incredible overall affordability, countless job opportunities, endless entertainment, and natural beauty, it’s no wonder why the Peach State has drawn so many people in recent years.

So, if you’re looking to buy a home in Georgia – or anywhere else for that matter – do weigh the advantages and disadvantages to ensure it’s the right fit for your family. Where you decide to live in Georgia will significantly impact your quality of life. A local real estate agent can help you find the neighborhood that fits just right.