Savannah Economic Update: Growth Slows as Housing Construction Shifts

The latest Savannah economic update gives us a reason to look beyond the development announcements. The region is still adding jobs, but overall economic activity barely moved during the first half of 2026. Meanwhile, the mix of housing being approved for construction is changing.

Those are different stories, and both matter if you are buying, selling or investing here.

The findings come from the second-quarter 2026 Coastal Empire Economic Monitor, published by Georgia Southern University’s Center for Business Analytics and Economic Research. Credit for the economic analysis belongs to Michael Toma, Ph.D., the university’s Fuller E. Callaway Professor of Economics in the Parker College of Business.

I received the report on September 28. It covers the Savannah metropolitan area, which includes Chatham, Bryan and Effingham counties. That makes it relevant to conversations about Savannah, Pooler, Richmond Hill, Rincon and Guyton, although it does not provide separate results for each community.

Having served Savannah-area real estate clients since 2007, I look at reports like this alongside neighborhood sales and competing listings. At The Trisha Cook Team at Compass, our job is to help you understand how the broader picture relates to the property you actually own or want to buy.

The economic findings below are Toma’s. The real estate takeaways are my interpretation of what buyers, sellers and property owners should consider.

Savannah economic update: the numbers that matter

The report presents a mixed picture. Employment increased, unemployment remained low and port activity improved. Overall business activity, however, was flat.

Source: Michael Toma, Coastal Empire Economic Monitor, Second Quarter 2026, Georgia Southern University.

There is still economic strength here. The pace of growth is the concern. A region can have major employers and substantial investment while experiencing a quieter stretch in hiring and business activity.

For real estate, that is a reason to pay closer attention to affordability, competition and timing. This report alone does not establish what an individual home should sell for.

The housing construction shift deserves attention

One of the report’s most significant findings involves the type of housing permitted during the first half of 2026:

• Multifamily housing: 1,535 units permitted.
• Single-family homes: 1,298 units permitted.

Toma reports that this is the first time multifamily units have exceeded single-family homes in the first half of a year since this data collection began in 1995.

These are permitted units. They are not completed homes, occupied apartments or properties currently available for sale. The seasonally adjusted monthly permit figures elsewhere in the report are a separate measure and should not be multiplied to reconstruct these first-half totals.

My takeaway is that we need to watch the type and location of new supply. Additional multifamily construction could affect rental competition where projects are completed. Fewer single-family permits could change the future flow of new homes, but they do not tell us how much existing builder inventory is available today.

For owners in Pooler, Richmond Hill or Effingham County, the useful question is specific: what will your property compete with, and when?

A construction permit value is not a home price

The report puts the average single-family building permit value at $276,200, up 15% from a year earlier. It explicitly excludes land and builder profit.

That number should not be described as the average price of a new home in Savannah. It also does not mean existing home values increased 15%.

This distinction matters because construction figures can easily become misleading real estate headlines. For actual resale pricing, use comparable closed sales and current competition. Our Savannah housing market update covers that separate part of the picture.

What sellers should take from this

Regional investment is a positive part of our area’s story. It is not a substitute for a pricing strategy.

If you are preparing to sell, evaluate:

• Recent comparable sales in your neighborhood and price range.
• Homes buyers can choose instead of yours right now.
• Nearby new construction and any verified builder incentives.
• Condition, repairs and costs a buyer will face after closing.

You cannot out-market the market. Professional photography and strategic exposure matter, but the asking price still has to make sense against the alternatives.

For a closer look at that comparison, read our guide to pricing a Savannah-area home when new construction is the competition.

What buyers and rental owners should watch

For buyers, slower economic growth is a reason to be deliberate. It does not establish that every seller will negotiate or that prices will fall across every neighborhood.

Compare the full cost of ownership, the property’s condition and how long you expect to own it. A purchase should work with your current budget rather than depend on a future rate change or appreciation.

If you are comparing locations, our Pooler real estate guide can help you move from regional statistics to the communities themselves.

For rental owners, the multifamily permit figures deserve monitoring. Before assuming a rent increase, look at competing properties, advertised concessions, leasing times and projects approaching completion near your property. A regional construction trend does not predict the performance of a specific rental.

What Michael Toma expects next

Toma’s outlook calls for modest employment growth and weaker-than-average regional economic conditions through the remainder of 2026 and into early 2027. That is a forecast, and it can change as new data arrive.

The practical response is to make decisions with current evidence. If you are considering a move, The Trisha Cook Team at Compass can compare recent sales, competing homes and nearby construction in your specific area.

Call 912-737-2935 or visit TrishaCook.com to discuss your property and timeline.

Economic research credit: Michael Toma, Ph.D., and Georgia Southern University’s Center for Business Analytics and Economic Research, Coastal Empire Economic Monitor, Second Quarter 2026. Visit the university’s Economic Monitor archive for available issues. To request the newsletter, email [email protected] with “subscribe.” Real estate commentary is by Trisha Cook and is separate from the university’s analysis.