Economists say Georgia will grow more slowly next year, which means fewer new jobs and continued high home prices for residents looking for work or trying to buy a house.
What’s Happening: Georgia’s economy will grow by just 1.5% next year, matching the national pace but much slower than 2025. University of Georgia economists released the forecast at an annual economic outlook event at the Georgia Aquarium.
What’s Important: The slower growth means fewer new jobs will be created in 2026, and the risk of a recession remains elevated. The unemployment rate will tick up slightly to 4.1% next year.
Catch Up Quick: This year, Georgia had enough momentum to overcome national economic headwinds. But a slowdown in population growth, a shrinking labor force, and uncertainty over tariffs have weakened the state’s advantages heading into next year.
“In 2026, Georgia’s economy will match the U.S. economy with respect to the pace of GDP and job growth,” said University of Georgia Terry College of Business Interim Dean Santanu Chatterjee. “That said, both economies will experience positive but slower growth.”
Your Money: Inflation will peak at around 3.5% during 2026 before falling back to 3% in 2027.
Housing Market: Home prices across Georgia will stay flat through next year, but analysts predict 2026 could be the year when prices finally start coming down. Single-family home prices jumped 59% nationwide after the pandemic.
“We do not expect a repeat of the housing bust that accompanied the Great Recession because there will not be enough distressed sales to drive home prices down drastically,” Chatterjee said. “Plus, there is tremendous potential for stronger and more active housing markets once the economy returns to trend growth.”
Homeowners aren’t selling because they don’t want to give up their low mortgage rates. With fewer new families moving to Georgia, the housing industry will remain in a recession through 2026.
The Silver Lining: Georgia remains well-positioned to bounce back once national economic conditions improve.
“Georgia’s economy is resilient and well diversified with a workforce with wide-ranging skill sets, a business-friendly policy environment and a world-class higher education network with top universities and trade schools,” Chatterjee said. “This gives us much hope for the future.”
