Issue link: http://savannah.uberflip.com/i/1542376
23 7 Chatham County increased 4.5% to $358,000 in 2025. A total of 5,896 residential units (all types) sold, an increase of 6.8% as compared to 2024, reversing a three-year period of declining volume in the county. The market share of units sold at greater than $300,000 increased to 68% from 63% in 2024. Conversely, the share of homes selling at or below $200,000 declined to 13%, continuing a downward trend since 2018 at which time 51% of homes sold were in this range. The number of homes selling for over $1 million increased 22% to 400 units as compared to 2024. Limited supply of inventory pushed prices up significantly from 2022 to 2025 and is expected to be a factor again in 2026. A weakening state economy and softer regional economy is expected to limit increases in 2026, but median sale price will increase 2% to 4% in 2026. In the Savannah MSA, on the supply side of the housing market, the number of building permits issued in 2025 for single family homes was approximately 3,300 units, a gain of about 12%. This compares favorably to the five-year average of approximately 2,400 units. The average value of a permit issued decreased 4,300 (-1.7%) to $242,000 in 2025. Residential construction is expected to moderately increase in 2026 as mortgage interest rates edge downward. The number of permits issued is expected to increase by about 5% again in 2026. In 2025, developers and homebuilders responded to the increased demand for multifamily unit housing. Through August, the number of multifamily building permits issued nearly quadrupled to 1,267 units from 341 units in 2024. This is consistent with a near-doubling of multifamily unit share of total units issued to about 36% in the past 7 years from about 19% from 2010 to 2017. Numerous multifamily and single family housing developments are emerging in the Savannah metro area for 2026. These include projects in Savannah, Georgetown, Pooler, Port Wentworth, Bryan County, and Effingham County among others. Office and Commercial Vacancy rates in metro Savannah's office and commercial market decreased to 3.8% from 4.9% over the year. The vacancy rate has been on a fundamental long-term decline over the past 7 years, falling from a high of 14% in 2018. The amount of vacant space was 184,000 square feet of the nearly 4.2 million square feet of inventory in the Savannah MSA. Office absorption continues to move southward in the vicinity of Forsythe Park and into the midtown area. Regionally, office market rental rates reached $32.32 per square foot while rental rates were 12% higher in the downtown central business district (CBD) than in the Non-CBD area. Retail trade continues to develop and evolve in the region. Downtown, commercial operations along Broughton Street remain healthy with low vacancy rates and little available space along with some turnover indicative of innovative evolution in specialty retail and food service offerings. Some upscaling of offerings in City Market is emerging with the opening of Wexler's and another project in the works. Further, commercial development continues to strengthen in the Starland District along Abercorn and Bull streets with primarily locally-owned business meeting local demographic demand. The $600 million, 54-acre mixed-use Eastern Wharf project continues to unfold as the area emerges as a hub of restaurant, retail, and entertainment options. In Pooler, development at the Mosaic Town Center, a 170-acre mixed-use development at I-16 and the Pooler Parkway, continued in 2025 with additional retail, service sector, and food service establishments coming online. The center is currently home to Costco, Expercare, and the Galen College of Nursing. Additional commercial product and grocery options are in the works for 2026 and 2027. Further development of the center will be driven by population growth (as 1,200 apartments units are permitted for the interchange area) and infrastructure development in the immediate area. Port Wentworth is experiencing one of the strongest growth periods in the region, with significant retail, hospitality, infrastructure, and destination-oriented investment underway. Two new shopping centers are coming online, supported by rising consumer demand and 54,000 vehicles per day along Highway 21, which remains one of the busiest corridors in coastal Georgia. Modern convenience retail is expanding with two new stores under development. Underpinning much of this development is 2,400 currently active or issued residential building permits. The hospitality sector is growing rapidly, with eight hotels either under construction or nearing completion, which will increase the city's lodging capacity to meet demand for tourism, port activity, and business travel. The City has also advanced a major expansion of City Hall to increase service capacity and support continued population and business growth. Anchor Park in Port Wentworth remains a major anchor project for the city, with ongoing development of the multi-venue recreation and entertainment complex that includes the Savannah Ghost Pirates' training facility, amphitheater, recreational amenities, and supporting commercial uses. The surrounding Port Collective area is poised to become a new entertainment and commercial hub as the project progresses toward its anticipated 2026 completion.