Birmingham Real Estate Market 2020

Birmingham Real Estate Market Trends & Statistics 2020

Data Sources:

• https://factfinder.census.gov/
• http://www.deptofnumbers.com/
• https://www.zillow.com/
• RealWealth Property Team Data

Birmingham home values are more affordable than many other U.S. real estate markets today

• The median price of the average 3 bedroom home in Birmingham was $116,000 in 2019. This is 48% less than the median value nationwide.
• In the neighborhoods where RealWealth members invest the median home value is $116,000. This is also 48% less than the average 3 bedroom home nationwide.
• This shows us that Birmingham real estate is uniquely affordable, but perhaps this won’t be the case for long.

The median rent to purchase price for homes in Birmingham is higher than the national average.

• In 2019 the median monthly rent of an average 3 bedroom home in the U.S. was $1,670, which is 0.75% of the median purchase price of $222,000.
• The median monthly rent of the average 3 bedroom home in Birmingham was $1,150 in 2019, which is over 0.99% of the median purchase price of $116,000.
• In the neighborhoods where RealWealth members invest, the median monthly rent of R.E.A.L. Income Properties™ was $1,170 which is 1.00% of the median purchase price of $116,600.
• This shows us that there’s an opportunity to generate passive monthly cash flow in Birmingham at a significantly higher rent-to-purchase ratio than the national average.

Birmingham’s real estate market is more stable than many other U.S. markets, which likely makes investing here less-risky.

• Over the last seven years, the average 3 bedroom single family home in the Birmingham metro has appreciated by over 30% compared to 55% nationally.

Birmingham rents have been rising consistently over the last seven years.

• Between 2012 and 2019 the median rental price for 3 bedroom single family homes has appreciated by 30% metro-wide. Nationally rents appreciated 37% during this period.
• Although rents have not risen as fast as some U.S. metros, it’s important to note that Birmingham has a much higher rent to purchase ratio than the national average. The median three bedroom home in Birmingham rents for just under 1% of the purchase price. Nationally 3 bedroom homes only rent for 0.75% of the purchase price.
• This information, coupled with the home value data above, shows us that Birmingham is growing consistently. Although home values and rents haven’t risen as quickly as other U.S. metros, they have been rising. This combined with the fact that Birmingham offers a strong rental income potential make it a strong place to invest.

Birmingham is experiencing consistent population growth year after year.

• Since 2010 the population in Birmingham has increased by 2.03%, which is about 65% slower than the national average. Although Birmingham’s population hasn’t grown as quickly as other U.S. markets, it has been growing consistently. This is a promising sign for investors looking to invest in a market with more stability.

In the last few decades, Birmingham has undergone a major revitalization, becoming a hub for publishing, medical research, banking, construction, and service-based companies. The city’s largest private companies include O’Neal Industries, EBSCO Industries, Drummond Co, Inc., and Brasfield & Gorrie, LLC.

• Between November 2018 and November 2019 the number of jobs in the Birmingham metro increased at a rate of 1.55%, which is 6% higher than the national average.
• This shows us that Birmingham is creating more jobs than other U.S. cities today, which is a good sign for real estate investors. Why? Because job growth leads to population growth, and people always need a place to live.

The Birmingham real estate market is affordable.

• The median price of the average 3 bedroom home in Birmingham was $116,000 in 2019. This is 48% less than the median value nationwide.

Birmingham’s housing market is offers cash flow opportunities.

• The median monthly rent of the average 3 bedroom home in Birmingham was $1,150 in 2019, which is over 0.99% of the median purchase price of $116,000. This is higher 32% higher than the U.S. price to rent ratio of 0.75% during this period.

Birmingham is Stable

• Over the last seven years, the average 3 bedroom single family home in the Birmingham metro has appreciated by over 30% compared to 55% nationally.
• The median rental price for 3 bedroom single family homes appreciated by 30% metro-wide during this period compared to 37% nationally.
• Although rents have not risen as fast as some U.S. metros, it’s important to note that Birmingham has a much higher rent to purchase ratio than the national average. The median three bedroom home in Birmingham rents for just under 1% of the purchase price. Nationally 3 bedroom homes only rent for 0.75% of the purchase price.

Birmingham is Steadily Growing

• Since 2010 the population in Birmingham has increased by 2.03%, which is about 65% slower than the national average. Although Birmingham’s population hasn’t grown as quickly as other U.S. markets, it has been growing consistently. This is a promising sign for investors looking to invest in a market with more stability.
• Between November 2018 and November 2019 the number of jobs in the Birmingham metro increased at a rate of 1.55%, which is 6% higher than the national average.