Savannah has been proactively attracting technology workers outside its state, Georgia, to the metropolitan area. And this creates a potential bonus for the Savannah Georgia real estate as well as rental property investors. Combined with the city’s strong job growth and population, high life quality, and shortage of land for new development, it is not hard to understand the reason why the demand for real estate in Savannah is robust.
Savannah got the benefits from the rapid growth in the first part of last year, but reached a more sustainable pace that we have become familiar with today’s economy. That said, Savannah has experienced quite large growth in the last 18 months. This city should have an excellent year as growth is projected to exceed historical averages.
Business services, port activities, tourism, and most important, Savannah housing market, should be the fundamentals for above average economic growth and employment. Next, the growth will definitely invent appealing opportunities for those who consider real estate in Savannah as a career option.
Savannah at a Glance
Savannah is a city in the state of Georgia, United States. This city is situated along the Savannah River, about 20 minutes from the Atlantic Ocean and 3.5 hours drive away from Atlanta. It was originally founded as a British colony in the early 1700s. Savannah was a major port during the Civil War and American Revolution.
Savannah is romantic and always unique. It is home to the world-famous Savannah College of Art and Design as well as 3rd largest container ship port on the East Coast. With the most gorgeous landscapes and city squares in the world, it is fair to say that Savannah is an anomaly. This city is beautiful, resilient, and strong. Its residents make it even more so.
Savannah is known in sections with downtown being the most popular place to tourists. It is because there are many ancient buildings, restaurants, bars, and shops to explore. Visitors can also enjoy the world-renowned River Street, Savannah River, and Talmadge Bridge. Do not forget to visit the city’s impressive 24 city squares.
Today, Savannah is a thriving seaport community. It is also a home to a various mix of industries, including tourism, high tech, healthcare, manufacturing, and film. This city ranks number one globally in the production of top grossing feature films, ahead of entire nations like the United Kingdom and Canada, as well as bigger states like New York and California.
Savannah Real Estate Market Overview
Northerners have been purchasing homes in Savannah, pushing up the listing price by $50,000 within only 6 months, as reported by HousingWire. Real estate investors perhaps want to move quickly as soon as they find a nice single-family house to purchase. Houses in Savannah GA spend only 38 days on the market, compared to 57 days last year. Savannah is a market for sellers with nearly everything selling for a full price.
According to Zillow, the median home prices in Savannah Georgia is $106,800. Home values in this city have increased by 2.5 percent over the last year to get to that point. Note that home values do not represent sales prices or even listing prices for this case. Based on Zillow, the average listing price in the city’s housing market is $175,000. However, the average sales price is $147,466,
The housing market in Savannah has a single factor that is completely beneficial, which is affordability. In fact, Savannah real estate stays competitive in affordability with both local and national markets. That said, the city’s real estate is more affordable compared to two-thirds of the entire United States. Savannah ranks 1,207 on a list of 1,997 real estate markets, according to Coldwell Banker.
Prospective property buyers will consider this city for their chance to purchase a house in a budding market with a bunch of promises. Besides homeowners, affordability remains amazingly appealing to the Savannah real estate investing community. There are probably no other markets cheaper than the distressed property inventory in this city.
Referring to RealtyTrac, Savannah currently has 710 houses in some state of foreclosure. In the first quarter of this year, the number of properties that received a foreclosure filing in this city was 47 percent lower than the same period of time last year.
- Home values in Savannah have gone up by 29.1 percent over the last year.
- According to the latest report from Realtor.com, the median list price of a single-family house in this city is $315,800.
- The median selling price of a house in Savannah is $300,500 while the medial listing price per square foot is $176.
- Homes in Savannah spend 38 days on the market from listing to getting a contract, compared to 57 days last year.
- Of the 84 neighbourhoods in Savannah, the most affordable one to purchase a home is Cuyler-Brownsville whose median listing price is $135,000. While the most expensive neighbourhood is South Historic District with a median listing price of $2.5 million.
Savannah Real Estate Market Trends
While sustainability has been pushing buyers to smaller, which is called micro-housing, the same thing does not apply for real estate in Savannah. Of course, bigger is better for this city, and real estate investors should pay attention to this growing trend. Buyers want to buy bigger properties. The average square footage of houses bought in Chatham reached 2,022. For houses bought on Skidaway Island, the average footage of homes rose 3 percent from year to year, from 3,133 to 3,233 square feet. Of course, these houses have obtained a gain in price per square foot as well.
Savannah Real Estate Market Forecast
Halfway through the year, Savannah real estate investors keep maintaining their trademark optimism. At the annual Economic Outlook luncheon that the Savannah Chamber of Commerce hosted, the University of Georgia economist predicted a 6 percent gain across the state, supported by strong increases in Savannah. According to Zillow, homes in this city’s housing market are forecasted to grow in value by as much as 2.4 percent in the next year. The more important thing is probably single-family homes are predicted to rise by as much as 20 percent.
Rental Property Market in Savannah
The Savannah GA rental market offers a relocation incentive to attract tech workers to the metropolitan area. According to a report from Forbes, the Savannah Economic Development Authority (SEDA) aims to attract tech workers from outside the state to the area in order to keep increasing the technology industry in the area. Here are some stats about the Savannah rental market.
- Based on the latest stats from RentCafe, the average rent in Savannah is $1,479 per month as of February 2022.
- Rents in the Savannah metropolitan area have gone up by around 23 percent on average.
- 43 percent of households in Savannah are renter occupied.
- The most affordable neighbourhoods in Savannah to rent a home are West Savannah, Cuyler-Brownsville, and Cloverdale where rents are less than $1,000 per month.
- The most expensive neighbourhoods in Savannah for renters are Yamacraw Village, Victorian District, and Thomas Square where rents can exceed $2,100 per month.
Population Growth in Savannah
Savannah is one of the rapidest growing cities in the state of Georgia, with a high number of residents flocking to the metropolitan area. Referring to the most recent report from WJCL, the Savannah Georgia population in suburban Bryan County just south of Savannah grew by 48 percent over the last 10 years. It is right now among the 6 rapidest growing counties in the United States.
In fact, a lot of newcomers come to the area and decide to live in the suburban bedroom communities surrounding the city of Savannah. They create a workday commute that is similar to rush-hour in Atlanta. Below are some stats regarding the population growth in Savannah.
- The city of Savannah has almost 148,000 residents and nearly 405,000 people in the metropolitan area.
- Savannah ranks the 5th largest city in Georgia and the 3rd largest MSA in the state.
- Chatham, Bryan, and Effingham counties form the Savannah MSA.
- According to the most recent census data, the Savannah metropolitan area had an addition of more than 30,000 new residents over the last decade.
- The city of Savannah is predicted to add around 13,300 new residents in the next 5 years as well as around 33,500 new residents by 2035.
Job Market in Savannah
The Savannah MSA has been described as the economic star with a wide foundation for the future. The job market in this city remains steady and strong, thanks to the diverse job sectors. For example, deepwater seaports, tourism, education, healthcare, defense, and aerospace. Nicknamed as the Hostess City of the South, Savannah has kept a relatively healthy economy.
With a diverse combination of services and industries, this city has shown an increased propensity towards economic stability and residential growth. Savannah has been able to keep its robust business position by penetrating the surrounding area with beneficial business partnerships in various industries, including innovative tech start-ups, healthcare, port operations, military, tourism, distribution, and manufacturing.
This strong job growth and healthy economy makes the local market and real estate market in Savannah a great place to invest in.
- According to the Federal Reserve Bank of St. Louis, the GDP of the Savannah MSA is almost $22 billion and has grown by more than 46 percent during the last decade.
- The unemployment rate in Savannah drops to 2.4 percent as of April 2022.
- The employment growth rate is 4 percent from April 2021 to April 2022 with an additional 7,515 new jobs in the market.
- Job sectors that show the quickest signs of growth in Savannah include information technology, leisure and hospitality, and professional and business services.
- Major industry sectors include film and entertainment, innovation, high tech, tourism, healthcare, manufacturing, military and defense, and transportation.
- Some of the biggest private sector employers in metro Savannah are East Georgia Regional Medical Centre, Publix, Kroger, Walmart, and Memorial University Medical.
- Georgia Southern University and Savannah-Chatham County Board of Education are some of the large public sector employers in Savannah.
- Major colleges and universities in and around Savannah include Mercer University, Savannah College of Art and Design, and Georgia Southern University.
- Port of Savannah is among the top 4 container ports in the United States. It is the quickest-growing deepwater seaport by container volume over the past decade.
Life Quality in Savannah
Founded back in 1733, Savannah is the oldest city in the state of Georgia. It is home to the Savannah Historic District, which is the biggest national historic landmark district in the United States. Thanks to the southern hospitality, subtropical climate, and waterfront districts, millions of visitors come to Savannah.
- Savannah GA cost of living is 3 percent below the national average.
- Forbes ranks Savannah as among the best places for business and careers in the country.
- Savannah ranks the 64th best place to retire in the United States on Niche.com.
- The city has an artsy, cool vibe, thanks to the Savannah College of Art and Design.
- Savannah offers a gorgeous scenic charm with buildings aged 300 years old on cobblestone streets and trees covered in Spanish moss, making the city a great place for those who love enjoying architecture.
- One of the best hospitals in Georgia according to the US News & World Report is located in Savannah, which is Memorial Health University Medical Centre.
- It takes only a 30-minute drive from downtown Savannah to visit beaches along the Atlantic Ocean.
Savannah Real Estate Market FAQa
- Is Savannah an Affordable City to Live?
It can be said so as the living cost in Savannah is 3 percent below the national average. The city offers subtropical climates, southern hospitality, cool vibes, and many more.
- Is Savannah a Great Real Estate Market?
Real estate pros forecast that the housing market in Savannah will continue to grow as home prices keep going up. Homes spend around 38 days on the market from listing to getting a contract, compared to 57 days last year. This shows that the real estate market here is going well.