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The real estate market in Georgia

The real estate market in Georgia

The real estate market in Georgia has experienced significant fluctuations in recent years, influenced by various economic policies and global events during President Joe Biden's administration. From 2020 to 2024, the median home value in the United States increased by over $106,000, surpassing the $72,000 gain observed during the previous administration.


Housing Affordability Challenges


The surge in home prices, coupled with rising interest rates, has intensified housing affordability issues in Georgia. In Gwinnett County, for instance, rents have escalated by approximately 30% since 2019, leading to a significant portion of households being burdened by housing costs.  This trend reflects a broader national pattern where housing costs have outpaced income growth, making homeownership increasingly elusive for many residents.


Inflation and Economic Pressures


Inflation has been a critical factor affecting the real estate market. Although the U.S. inflation rate decreased from its peak of 9.1% in mid-2022 to 2.4% in September 2024, the cumulative effect has been a substantial increase in the cost of living. This persistent economic pressure has influenced voter sentiment and economic confidence, particularly in battleground states like Georgia.


Federal Initiatives and Local Impacts


The Biden administration has introduced several initiatives aimed at addressing housing affordability. The Housing Supply Action Plan, launched in May 2022, seeks to increase housing supply through executive actions and partnerships with local governments. Additionally, the Inflation Reduction Act allocated over $25 billion to promote energy efficiency in housing.  Despite these efforts, challenges persist at the local level. In Atlanta, for example, Mayor Andre Dickens has called for federal intervention to curb the influence of large institutional investors, which have been acquiring a significant share of available homes, thereby driving up prices and limiting options for individual buyers.


Property Tax Reforms


In response to escalating property values and the associated tax burdens, Georgia voters have approved measures to alleviate property taxes. These initiatives aim to cap tax assessments and tie exemptions to inflation, reflecting a broader trend of taxpayer pushback against rising property taxes nationwide.


Conclusion


The interplay of federal policies, economic conditions, and local market dynamics continues to shape Georgia's real estate landscape. While national initiatives strive to address housing affordability and inflation, localized challenges such as investor-driven market pressures and property tax concerns require tailored solutions to meet the specific needs of Georgia's diverse communities.


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