Issue link: http://savannah.uberflip.com/i/1444971
22 6 Among others, Intuitive, a manufacturer of robotic-assisted surgical systems, announced a 1,200-job expansion in Gwinnett County. Amazon plans to build a fulfillment center in Savannah that will bring 1,000 full-time jobs. Sports-tech entertainment company FanDuel will open a technology campus in Atlanta that will generate hundreds of jobs. Vanderlande Industries, a materials handling and logistics company, will expand its North American headquarters in Marietta, creating 500 new jobs. Another reason Georgia will do well is that the U.S. automobile manufacturing industry is increasingly concentrated in the Southeast. When it comes to distribution and consumer markets, Georgia capitalizes on proximity to major assembly plants and suppliers, interstates, ports, and rail. Due to cost, logistics, and tax advantages, Georgia is very competitive when it comes to luring companies. It also has the skilled workforce sought by specialized companies with high-paying jobs. Logistics, transportation, distribution, warehousing, software/technology, fintech, cybersecurity, and headquarters operations are good examples of industries where Georgia competes effectively. Housing Market The outlook for the homebuilding industry is very good. Sales of homes, permits to build new single-family homes, and home repair and renovation activity will increase. Home price appreciation will continue slowly. Increases in demand for housing will stem from low mortgage rates, job growth, and population growth. In addition, investors will be active. The main negatives are supply constraints and decreased affordability due to recent home price appreciation. Housing and real estate development will be a driver of Georgia's economy. The number of new single- family home construction will increase by 7.8 percent and new multi-unit homebuilding will increase by 22.2 percent. Georgia gets a five for one from the housing boom because (1) homebuilders and realtors benefit directly and (2) national demand is high for goods produced by Georgia's large floor covering and building materials industries. Third, our large transportation and logistics industry benefits from higher levels of activity in construction, which is transportation intensive. In addition, continuing increases in U.S. home prices will make it even easier for companies and people to relocate to Georgia. Finally, the home equity generated by home price appreciation will boost small business formation and expansion as well as consumer spending. Georgia's housing market is responding to a more favorable balance of supply and demand that comes from people's increased preference for owning a home, continuing economic recovery, and low mortgage rates. New jobs and slightly bigger paychecks help, too. As of mid-2021, Georgia's existing home prices were 37 percent higher than before the Great Recession's peak. Inflation over that same period was 27 percent. The degree of home price recovery varied widely within the state, however. For example, on average, existing home prices in the Atlanta MSA were 44 percent higher than their pre-Great Recession peak; in rural Georgia, it was only 20 percent higher. There some negatives. In 2022, supply-side constraints will continue to limit housing sales. The number of new homes is still constrained by years of underbuilding, a shortage of lots, and a scarcity of building materials, appliances, and construction workers. In addition, there are fewer existing homes listed for sale, especially ones that are most affordable. In fact, the price of the average existing single-family home will rise by 6 percent in 2022. Demographics Demographic forces are another factor behind Georgia's improving economic performance. The state's population will grow at a pace that exceeds the national average in 2022--0.8 percent for Georgia versus 0.5 percent for the U.S. Domestic net migration should increase to at least 40,000, some of whom are mid- career movers and retirees. In addition, its higher rate of population growth traditionally is dependent on net international migration of about 20,000 people, and that number should increase in 2022.