Market Highlight - The Booming Savannah Port Story
We’ve been keeping a close eye on Savannah for about a decade now, and for good reason. While a lot of the country is still working through the aftershocks of oversupply and stubbornly high debt costs, this city is silently holding its ground. In a cycle where secondary markets are being stressed by the weight that comes with new supply, Savannah has done more than just hold up. 2024 was the kind of year where demand didn’t just match supply, it outpaced it. If you’re looking for a market that is quietly doing all the right things, Savannah is one worth paying attention to.
One of the main reasons we continue to watch Savannah closely is due to what happens outside of the multifamily investment industry, namely, the long-term infrastructure and job base being built around the port and manufacturing sectors. The Georgia Ports Authority is making a staggering investment into the Port of Savannah, which is already one of the fastest growing and efficient ports in the country. Over $4 billion is being deployed into upgrading the Ocean Terminal and the Savannah Container Terminal. To assist this growth, the Eugene Talmadge Memorial Bridge is being lifted to accommodate the influx of larger vessels, with construction expected to wrap up in 2028. On the manufacturing side, Hyundai Motor Group’s $5.5 billion dollar EV facility has recently been completed and is expected to supply over 8,000 jobs locally, while generating an entire system of suppliers, logistics firms, and secondary manufacturers. In other words, Savannah isn’t just absorbing new units because of the population growth, it’s doing so because the underlying economy is expanding in a structural, long-term way. Jobs are being created. Infrastructure is being built and the demand for housing is directly tied to these investments.
These major investments will contribute to Savannah’s already below the national average unemployment rate. According to the Bureau of Labor Statistics, Savannah’s unemployment rate stood at 3.4% in April 2025 which is well below its historical average of 6.3%. Dr. Michael Toma of Georgia Southern University projects continued employment growth in 2025, driven by trade, transportation, utilities, and advanced manufacturing. Tourism, hospitality, education and healthcare also play significant roles in Savannah’s well-balanced workforce.
People are catching onto the local growth, and demand has left very evident paper trails. According to RealPage, Savannah absorbed 2,431 units in 2021, nearly doubling the five-year average and well ahead of the pre-COVID norm of about 750 units per year. Compare that to the 2,213 units delivered, and the story becomes crystal clear: demand is doing a lot more than keeping up. Additionally, the overall occupancy across all product types has remained above 93%. In many other secondary markets, absorption tends to lag behind new deliveries. Savannah has been going against that trend.
Source: RealPage Market Analytics, “Savannah Demand Pushes Past Supply in 2024.”
In 2025, developers expect to bring approx. 2,600 new units online, which is Savannah’s largest supply year in more than two decades. In most markets, we’d view that with some caution. But Savannah’s job growth and population gains continue to tell a different story. South Savannah, in particular, is already leading the metro in occupancy and absorption. Location still matters, and the absorption data is showing us where renter preference is going.
The increased rental demand stems from Savannah’s robust population growth, which continues to be a major tailwind. Between 2020 and 2023, the local population grew by 4.8%, which towers over the national average of just 1% over the same time period. The metro population is now over 347,000 and still growing daily. With a median age of 34.4 and about 20% of the population between 20 and 29, the market is heavily weighted towards the prime renting age demographic. When we factor in current mortgage rates and insurance costs they point toward continued strength for multifamily investment. It's simply far more economic to rent, in comparison to even very modest home ownership.
Source: Census Reporter, “Population by Age Range”
As for the renter’s market, rents have ticked up, but we’re not seeing any signs of rent fatigue. According to apartments.com, the average monthly rent in Savannah is $1,572 still showing immense affordability, especially when you look at the city’s median household income of $56,782. Well-located properties with clean finishes and the right floorplans still have room to push rent without approaching a rent ceiling.
Savannah continues to be a resilient market, exemplifying strategic growth in the future. The city’s ability to absorb new supply is no accident, it's the result of a strong and diverse workforce that has been greatly invested into. Amid the national headwinds of elevated interest rates and slow rent growth, this city has been standing apart from the rest. For investors seeking a market with both strong fundamentals and long-term upside, Savannah is increasingly hard to ignore.
Sincerely,
The DXE Team
Sources Referenced
RealPage Market Analytics, “Savannah Demand Pushes Past Supply in 2024”
RealPage Market Analytics, “Savannah Apartment Market Holding Strong”
Bureau of Labor Statistics, “Savannah, GA Unemployment Rate”
Savannah Chamber of Commerce, “Savannah Chamber’s 2025 Economic Outlook Luncheon Highlights Regional Growth Trends”
Census Reporter, “Savannah, GA Metro Area – Population by Age Range”
Apartments.com, “Average Rent in Savannah, GA – Latest Rent Prices by Neighborhood”
Savannah Economic Development Authority, “Infrastructure Overview”
CoStar, “Hyundai's 'Metaplant' Near Savannah, Georgia, Sets Course for Massive Job Growth