Rent vs buy in Georgia
Today's numbers over a 7-year look: of 18 cities with 50,000+ residents, 10 favor renting, 7 favor buying, and 1 comes out a toss-up.
Rent or buy across Georgia's cities
| City | Verdict | 7-year result | Break-even (up to 30 yrs) | Typical home | Rent /mo |
|---|---|---|---|---|---|
| Augusta | Buy | buying wins by $27k | year 4 | $187,663 | $1,344 |
| Savannah | Toss-up | toss-up, renting ahead by $1k | year 8 | $318,893 | $1,712 |
| Roswell | Rent | renting wins by $159k | none in 30 years | $650,072 | $1,706 |
| Marietta | Rent | renting wins by $68k | year 24 | $471,498 | $1,687 |
Sources: Zillow Home Value and Observed Rent indexes. Verdicts come from our rent vs buy approach at 20% down over 7 years.
Our take on Georgia
Buying wins in 7 of Georgia's 18 biggest cities, renting in 10, with 1 landing as a toss-up. How home prices compare with rent decides your choice. A typical home in Atlanta costs $380,331, while rent runs $1,942 a month. Renting comes out $13k ahead over 7 years, and you don't break even until year 9. A $685,103 home in Sandy Springs rents for $1,680. By renting there, you save $184k over 7 years, while buying won't break even in 30 years.
Take a look at cheaper markets, where the math flips for you. A typical home in Columbus costs $175,906, with rent at $1,331. Buy there and you're up $31k over 7 years, with break-even arriving in year 3. Savannah comes out a toss-up, with a $318,893 home and $1,712 rent. At 7 years the two sit $1k apart, and break-even comes in year 8.
Statewide numbers point you in opposite directions for a typical $329k home. You pay 0.77% in property tax, less than the 0.94% US rate. On homeowners insurance the numbers push the other way: $1,432 a year here compared with $1,308 nationwide. Over the long term, home prices have grown 4.4% a year, and 8.2% a year during the past 10 years, so buying helps you build wealth. At the same time 34% of households are renters, near the 35% US share, and monthly rent runs $1,393 against $1,413 nationwide.
Our take: in Georgia, your city's price tag is what we'd go by. Cheaper cities favor buying when you'll stay past year 4; in pricey suburbs where prices outpace rent, rent.