The University of Georgia's annual Georgia Economic Outlook luncheon, held in Athens this week, brought a positive outlook on the state's economy, which appears to be particularly strong for the Athens region.
Benjamin C. Ayers, dean of the Terry College of Business, predicted that there will be an economic slowdown across the country as inflation declines. Slow economic growth this year will “promote accelerated economic growth in 2025,” the dean said.
“We are not predicting a recession,” Ayers told a gathering that filled a banquet hall at the Classic Center in downtown Athens.
The annual event carries its economic message to venues across the state, including Atlanta, Augusta, Columbus, Albany and Macon.
Locally, Jeffrey Humphreys, director of the Selig Center for Economic Growth at the business school, said Athens should expect faster job growth than the rest of the state as a notable success in private sector development projects expanding the region's economic base.
In his speech, he mentioned the Meissner Group's decision to expand its production site to create more than 1,700 jobs, as well as Boehringer Ingelheim's plans to expand its factory and create 55 more jobs. Two additional industries with UGA ties would create about 450 new jobs in Athens, he said.
“The number and scope of recent economic development project announcements is outstanding for a relatively small metropolitan area,” Humphreys said.
While the number of educated workers in Athens exceeds the nation or state, wages and salaries must increase to retain those workers, he said.
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Humphries mentioned other jobs such as the local film industry, which is tied to the state's strong film industry. He noted that Reynolds Capital opened a new 350,000-square-foot studio in Athens and Athena Studios recently acquired 65 additional acres for its location.
According to Humphries, demographics also play a role in Athens' economic situation. He noted that there are more young than older residents living there. And the region's proximity to Atlanta also has advantages.
He said 8% of workers living in Athens commute to Atlanta for work, while commuters from Atlanta fill 10% of jobs in Athens.
But Athens faces challenges.
One concern is the area's “overvalued single-family home market and tight housing market,” he said.
Humphreys said that while the real estate market is overvalued, demand for housing and low supply of homes for sale are preventing prices from falling.
This recent increase in rents and home ownership could slow the influx of retirees moving to Athens, as the area is “an amenity-rich, yet very affordable place to live,” he said.
“The cost of living in Athens has already risen to about 97% of the U.S. average,” he said, but it remains below the cost of living in Atlanta.
However, he noted that Athens is “less exposed to the ups and downs of real estate development than the country as a whole.” He said housing-related employment accounts for only 7% of all jobs in the region.
“In conclusion, we can expect job growth to slow but not stop,” he said.
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