Can You Afford It?! Cost of Living in Georgia

We all know that life has gotten really expensive these days. Inflation has touched just about everything, and I think we've all seen our cost of living increase dramatically over the last five years. You might live in an area that you simply can't afford anymore, and you're looking for more affordable options, or maybe you're just interested in what it will cost you to live here in Georgia.

The vast majority of people I receive calls from are interested in the northern half of the state, so most of this information is tailored to these areas. If you find the northern half too expensive, middle and South Georgia are more affordable.

Housing Costs

The average cost of a home in the Northeast Metro Atlanta area in May 2024 was $539,000, with a median sales price of around $434,000. This is a significant increase from January 2021, when the average sales price was $374,000. This trend isn't unique to Georgia, but is prevalent in high-demand areas like Suwanee, Johns Creek, and Alpharetta, where average sales prices are $698,000, $860,000, and $955,000, respectively.

However, more affordable options exist in towns like Flowery Branch, where the average sales price is just under $500,000, Grayson at $458,000, and Winder at $337,000. On the west and south sides of Atlanta, homes in the $300,000 to $400,000 range can be found in towns like Dallas or McDonough.

Job Opportunities and Amenities

The Northeast Metro is more developed, offering more job opportunities, highly ranked schools, and a larger population. While this makes it more expensive, it doesn't necessarily mean it's better, especially if you're looking for something more rural and affordable. Each town's unique factors significantly affect home prices.

Property Taxes and Tax Exemptions

Georgia offers attractive property tax benefits, particularly for retirees. Many counties provide senior property tax exemptions, which can significantly reduce the tax bill. For example, in Gwinnett County, a senior exemption can lower the property tax bill from over $1,600 to just $669. Comparatively, property taxes in states like Illinois can be nearly ten times higher.

Georgia transitioned to a flat income tax rate of 5.49% as of January 1, 2024, replacing the previous progressive tax system. Sales tax in Georgia is 4%, with additional county taxes ranging from 6% to 9%.

Utility Costs

Air conditioning is a non-negotiable expense in Georgia, with summer power bills ranging from $200 to $300. Newer, energy-efficient homes may have lower bills, but it's wise to budget for these costs. Winter gas bills are also a consideration, especially for homes with gas fireplaces or furnaces.

Additional Expenses

Trash pickup is not included in property taxes in most cities and counties in the Northeast Metro, costing around $25 a month. Pest control is essential due to the prevalence of termites, costing a few hundred dollars a year. Public transportation is limited, making a vehicle necessary for most residents. Fortunately, Georgia has lower than average gas prices, and car tag fees are relatively low after an initial one-time fee based on the vehicle's value.

KeyPoint

The Northeast Metro Atlanta area offers a vibrant job market and a thriving economy, drawing people from all over to work in tech, healthcare, film, and more. If you're considering moving to Georgia, these insights into the cost of living will help you budget accordingly. If you've already made the move or have been living here for a while, share your experiences and any additional insights in the comments.