What is the cost of living in Georgia?

As the peaches and hospitality suggest, Georgia offers a sweet charm to those who call it home. Folks are drawn to its diverse set of offerings, from the cultural hotpot of Atlanta to the historic allure of Savannah. But what's the catch? How does the allure of the Peach State fare against your pocketbook? 

Let’s unlock the complexities of the cost of living in Georgia, from housing and transportation to healthcare, taxes, and the balance between expenses and quality of life.

Housing costs in The Peach State

Housing lays the foundation for your budget, and in Georgia, it's a mixed bag of affordability and unique expenses. Whether it's a rental property or you're looking to buy, the price of housing often takes center stage in your big-picture financial decisions. In Georgia, the housing market is a mix of bustling metropolises and serene country sides, each with its unique cost profile. Here’s a closer look at major cities:

• Atlanta is the priciest, with a typical home value of $390,373 as of 2024.
• The college town of Athens follows, with a home price tag of $303,010.
• Coastal jewel Savannah offers a median home value of $307,925.

When it comes to renting, Georgia on the whole is priced competitively compared to other states. As of 2024 statistics, the average rent for a Georgia residential property sits at $1,222. This places Georgia below the national average of $1,274. 

Digging deeper, these costs aren't set in stone — they hinge on various factors like location, property type, and prevailing market trends. It’s a good thing, then, that Georgia is as ripe with housing opportunities as it is with its actual produce. Whether you're after a slice of suburban charm, a historic fixer-upper, or a modern downtown condo, Georgia's real estate menu has something for everyone. 

Getting around: Georgia's transportation landscape

Georgia boasts a robust transportation system that caters to a variety of situations. If you're considering a move to the state, you'll likely find a good fit depending on your lifestyle preferences.

The state's highway system is extensive, with over 20,000 miles of federal and state roads including major interstates like I-95 and I-75. This ensures easy access to most destinations by car. Public transportation options vary depending on the city. Atlanta, for example, has a well-developed MARTA rail system, while other cities may have bus networks. Walkability can also differ. Urban areas tend to have more sidewalks and pedestrian-friendly infrastructure, while suburban and rural areas may require a car for most errands.

Beyond these basics, Georgia is a major transportation hub. The Port of Savannah is one of the fastest growing in the nation, and the state has the most extensive rail network in the Southeast, making it a prime location for businesses that rely on efficient shipping.  If you enjoy air travel, Atlanta boasts Hartsfield-Jackson International Airport, the busiest passenger airport in the world.

Safe to say that where planes, trains, and automobiles are concerned, Georgia is a home to each of them!

Healthcare and insurance in Georgia

Healthcare costs in Georgia can vary depending on your situation, but generally, the cost of care is higher, leading to a higher cost of living. 

Compared to the national average, Georgia leans slightly cheaper for individual plans. You can expect to pay around $5,424 annually or $509 per month, though this can fluctuate based on factors like age, health, and plan type. However, a recent report ranked Georgia as the 8th most expensive state for employer-sponsored health insurance, with a total annual premium averaging $7,367.

When it comes to out of pocket costs, data suggests the average deductible for a single person in Georgia is around $2,269 per year. This includes all deductibles, copays, and coinsurance. Overall, while Georgia offers some cost advantages for individual health insurance plans, employer-sponsored plans can be expensive. Be sure to factor in out-of-pocket costs when considering healthcare affordability.

The price for everyday essentials in Georgia

Obviously, the costs you incur on a regular basis are the most prominent factors in determining your cost of living in Georgia. To understand these, we need to look at expenses like groceries, utilities, and durable goods. And, thankfully, Georgia is known for its affordability, boasting a cost of living that sits around 10% lower than the national average.

According to 2021 data from the Bureau of Economic Statistics, grocery bills in Georgia average at $308 per person each month. Groceries on the whole tend to be slightly lower than the national average by about 4%, which is a boon if you’re trying to feed a family. 

Utilities like electricity, gas, water, and garbage collection are also generally cheaper in Georgia, averaging around $411 per month. Prices vary depending on provider and plan, but basic internet packages can range from $50 to $100 per month. Similar to internet, phone plans can vary depending on carrier and usage. Mobile phone plans can range from $60 to $120 per month.

Remember, these are averages. Your actual costs may differ depending on your location, lifestyle choices, and specific needs. More expensive cities like Atlanta will have higher daily living costs across the board, while rural areas will likely be cheaper.

Taxes in Georgia

No one likes to pay taxes, but there’s really no escape from them. All you can do is try to find a state with amiable tax laws, like Georgia! Georgia's tax system is considered relatively low-burden compared to the national average. Here's a quick rundown of some key taxes:

• Income tax: Georgia has a flat income tax rate of 5.49% for tax year 2024. This applies to most taxable income.
• Sales tax: The state sales tax rate is 4%, but counties can add on local sales taxes, pushing the combined rate up to a maximum of 9%. The average combined sales tax in Georgia is around 7.38%.
• Property tax: Property taxes are levied by local governments and vary depending on location and property value. Georgia ranks as one of the states with lower property tax burdens.

Georgia also has taxes on gasoline, cigarettes, and other specific items. And, when it comes to taxes on your retirement savings, there's a generous retirement income exclusion that can significantly reduce your tax burden!

Georgia's quality of life and your bottom line

While the cost of living in Georgia is certainly important, it's just one piece of the puzzle when choosing a place to put down roots. Georgia goes beyond affordability, offering a quality of life that's both vibrant and diverse. Some of the state’s biggest incentives include:

• Thriving job market: Georgia boasts a dynamic job market, flourishing in fields like logistics, technology, and even film production. Imagine the possibilities!
• Cultural tapestry: From the world-class museums of Atlanta to the elegant antebellum architecture of Macon, Georgia seamlessly weaves culture into the fabric of everyday life. Stroll through a grand museum or admire the historic architecture – the choice is yours!
• Educational powerhouses: Georgia's esteemed academic institutions—including the renowned Georgia Tech and the strong public university system—add another layer of richness to the state.

Georgia's affordability isn't just about numbers; it's about the freedom it grants you to experience all the state has to offer. It's a place where the cost of living intertwines with the intangible aspects of life, creating a state brimming with value, opportunity, and, of course, that signature Southern charm.

Find your foothold in Georgia

Living in Georgia comes with costs and opportunities, but remember that preparation and informed decisions make all the difference in terms of your quality of life in this charming southern state. In your pursuit of a new home or a fresh beginning, knowledge is your compass. The more you know about the cost of living in Georgia, the better equipped you are to call this state home. Ultimately, it’s a state that beckons with a lifestyle that's as enriching as it is affordable, a beautiful blend that resonates in the historic streets and modern skylines alike.

Ready to write the next chapter of your life in Georgia? Reach out to Orchard and start the conversation. The Peach State awaits, ready to offer you a sweet new home.