Housing Crisis Hits Georgia Veterans Amid Rising Costs

During a recent government meeting, officials addressed the pressing housing crisis in Georgia, highlighting the challenges posed by high interest rates, historic inflation, and a significant shortage of available housing, particularly for veterans. With Georgia ranking seventh in the nation for its veteran population—7.3% of the adult civilian population—the need for affordable housing solutions has become increasingly urgent.

The discussion emphasized the ongoing affordability crisis, with home prices and rents soaring by 26% and 47%, respectively, since 2020. Currently, metro Atlanta is experiencing a housing supply of only three to four months, well below the six-month benchmark considered healthy. Nationally, a report indicated a staggering 8 million missing households, exacerbating the housing shortage.

Key barriers to housing supply were identified, including rising land prices, increased costs of construction materials, and labor shortages. For instance, the average price of a finished lot in Gwinnett County reached $98,620, while costs for essential materials like lumber and concrete have surged since the pandemic. The construction workforce is aging, with a median age of 42, and there is a notable shortage of skilled tradespeople.

Interest rates also play a critical role in housing affordability. As of October 2023, the average 30-year mortgage rate was reported at 6.5%, making homeownership unattainable for many. The meeting underscored that design standards and zoning laws contribute significantly to increased housing costs, with a study revealing that such regulations account for 27% of additional expenses in Georgia.

The implications of these challenges are stark: approximately 2.9 million households in Georgia cannot afford the median home price of $360,000, and the average home price in Atlanta has reached a record high of $540,000. The meeting concluded with a call for actionable solutions, including a ten-point housing plan proposed by the National Home Builders Association aimed at removing barriers to housing and supporting veterans, first responders, and teachers in achieving homeownership.