Electric bills and housing are among the expenses rising for Georgia families, who are spending more on basic necessities.
The Urban Institute reports that costs are rising across several other areas of our lives. That is why it has released an updated “American Affordability Tracker.” Users can examine national and state averages for rent, childcare and grocery prices.
Greg Acs, one of the lead researchers on this work, says that in Georgia, the cost of rent has grown similarly to the U.S. cost of health insurance — it’s almost doubled.
The Washington, D.C.-based think tank, which conducts economic and social policy research, says that about half of Americans do not earn enough to cover the cost of living due to essential expenses.
Acs says that Georgia, much like the rest of the U.S., has seen an increase in energy costs.
“We also get our electric bills, and we are experiencing it ourselves that our electricity prices are going up. And we know the conversation is around data centers,” he notes.
The research indicates that many previously low-cost regions, including parts of Atlanta, are seeing housing, health care and grocery costs rise faster than in other areas.
“There is a substantial racial wealth gap. And you know, to the extent that if you think about families that are around median household income and just below median household income being the ones that are really stuck, stuck and maybe falling behind, just they’re disproportionately non-white households just because of the nature of the income distribution,” said Acs.
Saloni Firasta-Vastani, a professor with Emory University’s Goizueta Business School, says childcare is a major concern, too.
“Georgia families’ average child care cost from 2020 was $16,500 and has gone up to $20,600 over the last six years. So that’s a pretty significant increase,” said Firasta-Vastani.
“Rising living costs and uneven wage growth are putting pressure on lower- and middle-income residents, especially Black and Hispanic communities, amplifying existing inequality. As a result, Georgia’s economic growth is real, but increasingly uneven in who benefits from it.”
She says one possible solution for state leaders is to raise wages and increase job security.
“The state is experiencing strong growth driven by capital-intensive sectors like AI and data centers, which disproportionately benefit higher-income households,” said Firasta-Vastani.
Small businesses here have seen commercial rents increase sharply, prompting some to decide whether to close or relocate.
In addition, businesses are also balancing rising labor costs and consumer price sensitivity, which has led to inflation over the months.
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