As fast-rising real estate values during the COVID-19 pandemic priced more people out of homebuying, rental markets became more competitive among consumers. On the supply side, inflation in the cost of materials, rising interest rates, and tightness in the labor market have all contributed to difficulties in developing new housing stock. With fewer units available, prices have risen dramatically.

Here are the key takeaways from the report for Georgia:

• Median rent in Georgia is $1,753, with a median price of $1,414 for 1-bedroom units, and $1,616 for 2 bedrooms.

• Median rent for the U.S. overall is $1,782. For 1-bedroom units, we’re looking at $1,423; 2-bedroom units, $1,716.

• Overall, Georgia ranked 18th in the analysis.

While inflation in most sectors of the economy has improved over the last year, the cost of shelter in the U.S. continues to remain high for many consumers. Inflation data released by the Bureau of Labor Statistics in October 2023 revealed that while the Consumer Price Index overall was up 3.7% year-over-year, the index for shelter had risen 7.2% over the same span. Increasing rent prices have been a major reason why.

The dynamics of the rental market in recent years largely reflect simple supply and demand. In the years following the housing crash and Great Recession, the number of new housing projects plummeted and were slow to recover over the course of the 2010s. Around the same time, the Millennial generation—America’s largest, with more than 72 million members—began to reach adulthood, introducing greater demand in the market.

Economic conditions during the COVID-19 pandemic have exacerbated issues with the rental market. As fast-rising real estate values priced more people out of homebuying, rental markets became more competitive among consumers. On the supply side, inflation in the cost of materials, rising interest rates, and tightness in the labor market have all contributed to difficulties in developing new housing stock.

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