Jimmy McMillan rose to comic fame running for Governor of New York on a single slogan: The Rent Is Too Damn High.
After years of inflation, McMillan’s slogan resonates all over the country including in here in the Peach State, where reports show housing costs are up more than $6,221 since January 2021. Related reports show energy prices up more than $106 per month and grocery prices up more than $127 per month in the same period.
As of June, 39% of Georgia adults reported difficulty paying expenses.
So, what is driving the increase in housing costs?
An editorial from the Atlanta Journal Constitution points to a surge in both federal spending and federal debt. “By the time January 2025 rolls around, the administration will have overspent about $9.5 trillion in just four years, shattering the previous record,” said economist EJ Antoni.
Even as the Federal Reserve has cut interest rates, mortgage rates have continued to drift upward adding costs to mortgages, rents, credit cards, and other goods and services.
Economists predicted in April that Atlanta housing prices were poised to begin dropping, but Realtors cite increased demand as continuing the spike.
“As you drove into the neighborhood today, how many for sale signs did you see?” Pitre asked Atlanta News First. “Not one. We need more homes, and until we get them, we’re not going to be able to correct the market.”
The standard used by the Department of Housing and Urban Development to describe someone as “cost burdened” is when rent is more than 30% of a person’s income. Georgia ranks among the highest in the country of people classified as “cost burdened” with nearly 54% of families meeting the standard. This is up from 48.4% in 2019.
In total, estimates from the Joint Economic Committee Report show the average Georgia household has spent more than $29,580 extra since January 2021 due to inflation.
