Savannah Affordability: Finding the Silver Linings

If housing has felt tougher to afford lately, you’re not imagining it. Since 2019, Savannah home values have climbed a lot—2021 was an especially big year. Payments today are real. The bright side: rates have been easing from last fall’s highs, and more sellers are pricing with the market instead of last year’s headlines.

Rates watch (evergreen)

Mortgage rates bounce week to week on inflation and jobs data, but the recent trend has been downward. Even a small move matters: a ½-point dip on a typical 30-year loan can trim roughly $130/month on a $400,000 mortgage (principal & interest). That’s why our plan is always “price the home you love, then price the money”—lock strategy, seller credits vs. temporary buydowns, and (when available) float-downs. This keeps your plan relevant whether rates tick down again or just drift sideways.

Renting vs. buying right now

HUD’s 2025 fair-market rent for a modest 2-bedroom in the Savannah area is about $1,584/month. The “housing wage” to comfortably afford that sits near $30/hour here, while the average local wage is a bit lower. Translation: many families are right on the line, so it makes sense that everything feels tight.

If you own a home

Chances are you’re sitting on meaningful equity after the last five years. That’s real wealth you can put to work—renovate, move up, downsize and keep cash in your pocket, or buy your first rental. If you purchased before or during 2021, your timing likely gave you a cushion that’s hard to beat elsewhere.

If you’re aiming to buy

There are more levers to pull than most headlines mention.

• Plan for payment, not just price. With rates drifting down, even a small dip can change the monthly cost. Pair that with seller credits or a temporary buydown and the math can get doable again. (I’m happy to model your numbers.)
• Down-payment help exists. The City of Savannah’s DreamMaker program and the statewide Georgia Dream options can help with down payment and closing costs if you qualify.
• Assumable loans are a quiet win. Many FHA, VA, and USDA loans can be assumed by qualified buyers—meaning you take over the seller’s existing (often lower) rate. It takes some paperwork, but it can make a real difference.
• Location matters to your budget. Affordability is housing plus transportation. Living closer to work or frequent routes can lower your total monthly outlay.

If you’re thinking about staying put

Savannah’s Stephens-Day homestead provision helps long-time owner-occupants by freezing the taxable value for the county portion of your bill (new improvements get added to the base). The City also adopted a rollback millage rate this year—the lowest since the 1980s—which offers a modest offset to rising costs.

Why I’m still optimistic about Savannah

Our fundamentals—ports, logistics, hospitality, and healthcare—are steady. The Port of Savannah just wrapped one of its busiest years ever, which is a good sign for jobs and investment. Inventory is slowly coming back, rates are easing, and creative financing tools are back on the table.

Bottom line

Whether you’re buying, selling, or just planning, there are paths forward. Want us to run your Affordability Check? Drop a message with a few details, and we’ll send back a simple breakdown. No charts, just clarity.