At a recent presentation at the Classic Center on January 23, 2025, UGA economist Jeff Humphreys highlighted that Athens' economic growth is being significantly hampered by a housing shortage. This shortage has been exacerbated by high demand from students, with housing prices in Athens increasing by 7% over the past year and a staggering 72% since late 2019 [3e15663f]. Currently, 41% of housing units in Athens are renter-occupied, and the area faces a low vacancy rate of just 4% [3e15663f].
In the broader context, Georgia's GDP is projected to grow by 2.4% in 2025, a decline from 3.1% in 2024, while U.S. GDP growth is expected to decrease from 2.5% in 2024 to 1.6% in 2025 [3e15663f]. Additionally, unemployment in Georgia is projected to rise from 3.7% to 4%, and inflation is expected to stabilize around 3% [3e15663f].
The housing crisis in Athens is particularly pressing, as the University of Georgia (UGA) has seen enrollment grow by 1,531 students to a total of 43,146, further intensifying the demand for housing [3e15663f]. This situation reflects a broader trend affecting economic growth across the state, as highlighted in previous reports discussing Georgia's overall economic outlook for 2025 [a9c6e2ba].
While sectors like manufacturing and healthcare are projected to lead growth in other parts of Georgia, Athens' unique challenges underscore the importance of addressing housing supply to foster sustainable economic development [a9c6e2ba]. As the state navigates these economic shifts, the implications for local communities like Athens remain critical to monitor [3e15663f].