A new report from the Georgia Chamber of Commerce Foundation takes a look at the state of housing in Georgia with some recommendations for encouraging new development. The report notes that Georgia CEOs say housing availability is the second most important issue affecting Georgia’s ability to attract new would-be employees.
In just the last five years, more than 268,000 jobs have been added to the state’s economy. Housing is having a hard time keeping up. Between the “missing middle” phenomenon and the somewhat separate issue of developer incentives to build high-end or lower-end housing, having enough housing for a complete workforce – not just the executives or new hires, is essential for the economy and competitive advantage that Georgia should be able to provide.
“In the same five years we’ve experienced unprecedented economic growth in every corner of the state, housing inventory has decreased by over 60% making the dream of homeownership unattainable for nearly four million Georgians,” said Daniela Perry, vice president of the Georgia Chamber Foundation. “Homeownership is a proven method for elevating families into greater economic mobility, and we look forward to continuing our work with our state’s elected officials to increase access to this critical wealth generation tool.”
Among the findings in the report, housing inventory has decreased by 60 percent over the last five years and nearly 30 percent of children live in high housing cost-burdened households. Just in the last year, first-time home buyers have declined by 8 percent. Maybe the most eye-popping is that the average county in Georgia has seen a 53.6 percent increase in monthly housing payments per month. With a nearly 50 percent increase in jobs and a 23 percent increase in population, the disparity and housing problem is on track to only get worse.
The report issues three recommendations which are fairly general but call attention to the issue: support partnerships between local municipalities and the business community for streamlining processes, encourage policies to incentivize new housing stock, and expand and support programs on the demand side to help Georgians become homeowners.
Few organizations in the state have as much influence over policy as the Georgia Chamber and its foundation, and it is an issue that has been bubbling up for some time. Housing prices in metro Atlanta have reached astonishing levels and other employment centers like Augusta or Columbus are lagging behind in development – why build in Augusta if you can build in Gwinnett and sell it for $600,000?
Crossover Day is looming at the end of the month so legislation may not make it through this year, though in reality, until midnight on Sine Die, there’s always a chance. Next year will be a new term for the legislature but after some tumultuous leadership changes the past couple years, 2025 will likely pick up from this year – even all the bills need to be re-filed. Housing will be one to watch.
Read the full report: (it’s worth a read and only four pages!)
