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16 depend more heavily on property taxes and fees for services and less so on sales and income taxes. Revenues gener- ated by property taxes and fees typically are far less cyclical than those generated by sales and income taxes, so most local governments will generate enough revenue to sustain and expand programs. While we do not expect residential real estate prices to increase in 2026, it is highly likely that assessed residential prop- erty values will rise substantially because assessed values lag market prices by a year or more. Over the past five years, there was heavy spending for major home improvement projects that will add to residential property tax digests. Less positively, new single-family home construction will be in recession. Economic Development Economic development activity will remain subdued in 2026, even though the state will win a larger share of the dwindling number of projects in contention. Thanks to cost, logistics, and tax advantages, Georgia is extremely competitive when it comes to landing economic de- velopment projects. But since it takes many years to complete the typical project, the backlog from the last several years will provide a substantial push to Georgia's economic growth. Large projects announced in 2025 include: EnergyTek's new manufacturing facility in Moultrie that will create 1,300 jobs; Tri- Net's new corporate center in Dunwoody; Pilgrim's prepared food manufacturing facility in LaFayette with 630 new jobs; and JS Link's rare earth magnet manufacturing facility in Columbus that will create more than 520 jobs. In addition, Mercedes-Benz will add up to 500 more jobs to its new U.S. headquarters in metro Atlanta and plans to locate a new R&D hub nearby, too. Also, Shriners Children's Hospital will establish a new pediatric medical research facility in Atlanta that will create 470 new jobs. Housing Market Conditions Housing is one of the most interest-sensitive sectors of Georgia's economy. In 2026, sales of new and existing homes and permits to build new single-family homes will decrease but permits to build new multi-family homes will increase slightly from already depressed levels. The more recent downturn in multi-unit construction reflects difficulty obtaining financing as well as new properties on the market that raised vacancy rates and softened rents. Meanwhile, investors will be less active. Inventories of new and existing single-family homes for sale will rise. As of mid-2025, Georgia's existing home prices were 70 percent higher than before the pandemic and we expect prices to decline slightly in 2026. The slowing economy, recent home price increases, high mortgage rates, and less confidence are the main culprits. Also, homes are overvalued. Beyond 2026, there is good potential for more active housing markets. Georgia will see slightly above-average popula- tion growth. Economic growth, slightly lower mortgage rates, and larger inventories of homes for sale, as well as a strong preference for detached housing will underpin the push. Demographics Census data show that Georgia's population is growing faster than the U.S. population largely due to migration from other states and other countries. There were three main reasons why: first, remote work and a desire to live in less densely settled locations bought people here. Second, aboveaverage job growth attracted workingage migrants; and third, liberal U.S. immigration policies brought international migrants to Georgia. But the rates of net migration were not sustainable and extremely strict enforcement of U.S. immigration laws caused net international migration to flip from positive to a loss of 2,000 people in 2025. Net international migration is likely to be even more negative in 2026. Still, Georgia's population will grow at a pace that is slightly above the U.S. average—0.5 percent for Georgia versus 0.3 percent for the nation—and help drive Georgia's GDP in the coming year.