2025 Apartment Deliveries will Be Savannah’s Biggest Volume in 25 Years

Developers have found a construction hotspot in Savannah, GA over the last five years, and that trend is set to continue in 2025.

Savannah, known as the Hostess City of the South, is Georgia’s oldest city, in existence since 1733. A port city separated from South Carolina by the Savannah River, Savannah currently ranks as Georgia’s fifth-most populous city, and the third most-populous metropolitan area. The city was established with 24 squares and still has 22 of those today, which form the Savannah Historic District.

This small market with only two submarkets boasts a population of 424,935 residents with a workforce of roughly 208,900. From 2020 to 2023, Savannah’s population grew 4.8%, according to the latest estimates from the U.S. Census Bureau. That rate notably surpassed the national average growth rate of just 1% during that period and ranked as the third fastest growth pace across Georgia’s metropolitan areas.

With a growing population, roughly 2,600 new apartment units are projected to come online in Savannah in calendar 2025, expanding inventory 7.1%. That would be the largest delivery load in Savannah in 25 years. Those units will account for nearly 81% of the 3,175 units under construction in the market as of 4th quarter 2024. Once all units under way are completed, Savannah’s existing unit base will swell another 8.8%, a significant increase for a market that has seen supply swell 29.9% over the last five years.

In 2024, developers added some 2,213 units to inventory in the city known for its blooming azaleas and magnolias. That was the second highest annual completion volume since 2000. Over the last five years, deliveries were largely concentrated within the North Savannah submarket. Existing inventory in North Savannah climbed about 46% during the five-year period. 

Demand in Savannah recently came out ahead of increasing supply volumes. In 2024, absorption of 2,431 units outpaced supply of 2,213 units. That annual demand load was nearly double the five-year average of roughly 1,455 units and was well ahead of the average seen during the five years leading up to the pandemic (2015-2019), which was only about 750 units per year.

Strong demand has helped occupancy across Savannah tighten. In February 2025, occupancy in the market registered at 94.8%, slightly below the five-year average (95.2%).

In February, occupancy varied across product classes, with Class C product leading at 96.1%. Class B stock followed at 94.6%, while the more expensive Class A product trailed at 94%. Among submarkets, South Savannah led the market average at 95.4% with occupancy in North Savannah trailing at 94.5%.

Apartment occupancy in Savannah generally trends behind the national average, though recent progress closed that gap. During the five years leading up to the pandemic (2015-2019), occupancy in Savannah averaged at 94.3%, about 80 basis points below the national norm (95.1%). As of February, that gulf closed with Savannah’s occupancy only 20 basis points below the U.S. norm (95%). In fact, February topped off an eight-month trend of the market’s occupancy matching or falling within 30 basis points of the nation’s average.

From a regional standpoint, occupancy in Savannah has hovered above the South region norm over the past five years, a change from pre-pandemic performance. In February, South region occupancy hit 94.1%, roughly 70 basis points below the Savannah market average. Conversely, from 2015 to 2019, occupancy in the South region (94.5%) ran a smidge above Savannah’s market average (94.3%).

Like most of the country, Savannah saw rent growth accelerate in late 2021 through early 2023. Unlike many major markets though, rent growth in Savannah – though declining and minimal – has remained in positive territory after tapering off. In 2024, rent growth in the U.S. (0.4%) eked past the average in Savannah (0.3%) for the first time since early 2020.

Despite occupancy trailing the market, Class A product drove rent performance in Savannah at 0.4% in 2024. Class B and C product followed closely at 0.3%. Class A generally leads for rent growth. From 2015-2019, rent growth in Class A units averaged 4.2%. Class B followed at 2.3% and Class C at 1.9%. Over the last five years, rent growth has accelerated above that norm with performance in Class A averaging at 10.3%, Class B at 7.9% and Class C at 5.2%. From a submarket perspective, with only 10,700 existing units, South Savannah led the market with rent growth at 2% in 2024.

An expanding job base has spurred the local economy to support development. In December 2024, the job base expanded by 0.8% or 1,600 jobs based on preliminary estimates from the Bureau of Labor Statistics. Unemployment in Savannah sat at 2.8% in December, below the U.S. norm (3.8%).

Trade/Transportation/Utilities employs the largest number of people in Savannah, comprising 24.7% of the workforce as of December. Meanwhile, Education/Health Services accounted for 14.5% of all private sector jobs. Savannah is a thriving tourist spot. More than 17.7 million visitors came to the city in 2023, fueling Leisure/Hospitality Services employment (13.4%) in Savannah. Other key sectors include Government (12.1%), Professional/Business Services (11.5%) and Manufacturing (10.7%). The remaining sectors each account for less than 5% of the employment base.

The Port of Savannah, the single largest container terminal in America, also plays a major role in the local economy. The fastest growing port on the East Coast, container volume grew 12.5% in 2024. Georgia’s ports, Port of Savannah and Port of Brunswick, support 609,197 jobs statewide and $40 billion in income for the state’s residents. The ports also generated $171 billion in revenue and $5.3 billion in state and local taxes to Georgia’s economy as of 2023, according to Georgia Ports.

Relatively speaking, Savannah is home to a fairly young population. The median age in the metropolitan area in 2023 was only 36.7, below the U.S. norm of 38.7, according to the latest data from the U.S. Census Bureau. The total population is comprised of about 22% within the 20- to 34-year-old age group – a crucial component of the apartment market – ranking above the national rate of 20.2%. Not surprising for a place with 17 area colleges and universities supporting an enrollment of at least 74,000 students.