Every rental property owner needs to assess what the rental market has in store for them in the next year, as it helps them strategically plan for what’s to come. Discovering individual factors about the rental market in Georgia can help you make informed decisions, thereby ensuring the success of your rental business for the next year. What is the Georgia rental market like in 2025?
Key Highlights:
- While Georgia's 30-year fixed mortgage interest rate of 6.54% is slightly below the national average, the increase since late 2024 has led to an 18% drop in home sales by February 2025.
- For current property owners, the high mortgage rates are a positive, as they reduce competition from new home buyers and drive more people into the rental market, leading to increased demand and potential for higher rental rates.
- Georgia's cost of living has hit a two-year high, with the annual inflation rate accelerating to 4% in June 2025. This could make the state less attractive to potential new residents.
- The job market shows a mixed performance, with strong gains in sectors like healthcare and manufacturing, but declines in others such as hospitality and finance. The overall unemployment rate fell to 3.4% in July 2025.
- Despite economic shifts, rental demand remains high across Georgia, particularly in key cities like Atlanta, Savannah, and Augusta. This is due to a housing supply that has not kept up with the demand, resulting in low vacancy rates and rising median rent.
Local Economy
Interest Rates and Financing
The mortgage interest rate in Georgia has increased since its multi-year low in September 2024, so much so that by February 2025, home sales had dropped by 18%. The interest rate is now at 6.54% for a 30-year fixed mortgage, and 5.88% for a 15-year fixed mortgage. Still, it is slightly lower than the national average of 6.61%.
This might put a kink in your plan if you’re a new investor looking to purchase real estate properties, but if you already have a rental property of your own, this can serve as a silver lining. With fewer competitors in the housing market, you can expect more potential tenants and higher rental rates.
Cost of Living
The current state of the economy has left Georgia with a higher cost of living, hitting a two-year high. The state’s annual inflation rate accelerated to 4% in June 2025, from 3.5% in May 2025. This could deter potential tenants from moving to Georgia, whether it’s for settling down or chasing job opportunities.
Maintenance Costs
You will have to account for maintenance costs, considering how important a well-maintained property is to attracting tenants. Property owners in Georgia can shell out about $7,956 annually on home maintenance.
Of course, that will depend on whether you hire professional services or do it yourself, as well as what kind of property you have. Multifamily properties tend to have higher maintenance expenses due to the number of units you have to maintain, as well as the size of the property itself.
Job Growth
Georgia’s job market has been a mixed bag, given that some sectors are seeing more growth than others. According to the Georgia Department of Labor, sectors such as healthcare, social assistance, durable goods manufacturing, professional, scientific, and technical services, and state government have had the most job gains.
On the other hand, accommodation and food services, transportation, warehousing and utilities, finance and insurance, wholesale trade, and other services have declined over the month of July 2025. Generally, the unemployment rate fell by 3.4% in the same month.
Demand
Rental demand in Georgia continues to be high, especially in key locations like Atlanta, reports show. Many other cities show low vacancy rates, brought by young professionals and families alike moving to urban areas. Other cities like Savannah and Augusta are among the best cities to invest in, as more potential renters are arriving in the area.
The high demand for rental properties in the state has been attracting many real estate investors, which could increase competition in the future. However, if the upward trend of rental demand continues, then this won’t be much of an issue for rental property owners.
Supply
The strong rental market is fueled by the lack of housing in Georgia, mostly because it’s still trying to catch up with the fast-growing rental demand. There are new constructions in the works, and investors are still attracted despite the increase in mortgage interest rates.
With high demand and relatively low supply, the median rent in Georgia is around $1,949, which has increased in the past year. Even with investors eyeing the state for rental businesses, current landlords can still expect good rental demand in Georgia for the rest of the year.
Georgia Rental Market FAQs
Which areas in Georgia have high rental demand?
- Rental demand is particularly high in key locations such as Atlanta, Savannah, and Augusta, with many other cities also showing low vacancy rates.
What is the job market like in Georgia, and how does it influence rental demand?
- The job market in Georgia is mixed, with strong growth in sectors like healthcare and manufacturing, but declines in others, such as accommodation and food services. Generally, the unemployment rate has fallen, contributing to continued rental demand, particularly from young professionals and families seeking job opportunities.
Is there a housing supply issue in Georgia?
- Yes, the strong rental market is partly due to a lack of housing supply in Georgia, as new constructions are still trying to catch up with the fast-growing rental demand.
How does the cost of living in Georgia affect renters?
- Georgia's cost of living has reached a two-year high, with an annual inflation rate of 4% in June 2025. This could be a deterrent for some potential tenants considering a move to the state.
Leave the Market Research to Us
Rental market research is crucial to learn what your next move should be and how you can prepare for shifts in the industry. After all, being knowledgeable about current circumstances can help you keep your finances steady.
However, it can be overwhelming to consider all the variables that can impact your business, much less use those insights to navigate the rental market. Luckily for many rental property owners, there are real estate professionals like PMI Georgia who can handle it with expertise and the needed resources.
There’s no need for you to stress over it, and all you have to do is Contact Us, and we will help you!
