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Real Wealth Network

California Real Estate Investment Club

Birmingham, Alabama

2019 Market Overview

Birmingham, Alabama

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MARKET MENUMARKET MENU
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Market Overview

Metro Population:

1.2 M


Median Household Income:

$52,000


Unemployment Rate:

4.40%


Median Home Price*:

$100,000


Median Monthly Rent*:

$995


Located in the foothills of the Appalachian Mountains, Birmingham is the most-populous city in the state of Alabama and the county seat of Jefferson County.

At the height of the nation’s manufacturing age, the city grew so fast in population it was nicknamed the “Magic City.” The nickname stuck when they discovered it was also the only city in the world where the three raw ingredients used to make steel (coal, limestone, and iron ore) occur naturally in a ten-mile radius.

In the last few decades, Birmingham has undergone a major revitalization, becoming a hub for publishing, medical research, banking, construction, and service-based companies. Today, the Magic City is considered one of the nation’s most livable cities because of its vibrant downtown, burgeoning loft community, and world-class culinary scene. In fact, Birmingham was voted the #1 Up-and-Coming Food City by Zagat in 2016.


Why Invest Here?

Birmingham, Alabama is a stable, lower-risk real estate market where investors can purchase cash flowing R.E.A.L. Income Property™ for $80,000 to $160,000. These factors make it a popular place for new investors to get their feet wet and for anybody looking for an affordable investment that can generate stable monthly income.

Trends

  • Overview
  • Housing Market Trends
  • Population Trends
  • Employment Trends
  • Conclusion

Birmingham Real Estate Markets Statistics 2018-2019Birmingham Trends & Statistics 2018-2019

In this section, you’ll learn about the top factors that make Birmingham one of the most popular real estate markets for 2019, including: affordable home values, passive income, and stability. Explore Birmingham’s housing market, population, and employment trends in the tabs to learn more.

Note: This page was updated for quality and accuracy on November 16, 2018.


Data Sources:

  • https://factfinder.census.gov/
  • http://www.deptofnumbers.com/employment/alabama/birmingham/
  • https://www.zillow.com/birmingham-al/home-values/
  • Real Wealth Network Affiliate Data

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

Birmingham Real Estate Market Home Values 2018

  • The median price of the average 3 bedroom home in Birmingham was $100,000 in January 2018. This is 51% less than the median value nationwide. As of September 2018, 3 bedroom home values have risen to a median $108,000, which is 47% less than the national average.
  • In the neighborhoods where Real Wealth Network members invest home values range from about $80,000 to $160,000. This is a median price of $110,000 which is 45% 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 more expensive U.S. cities.

Birmingham Real Estate Market Monthly Rent 2018

  • 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.
  • In January 2018 the median monthly rent of an average 3 bedroom home in the U.S. was $1,427, which is 0.71% of the median purchase price of $202,000.
  • The median monthly rent of the average 3 bedroom home in Birmingham is $995, which is over 1.00% of the median purchase price of $100,000.
  • In the neighborhoods where Real Wealth Network members invest, the median monthly rent of R.E.A.L. turnkey properties is $1,099. This is also 1.00% of the median purchase price of $110,000.

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

Birmingham Real Estate Market Home Values 2012-2018

  • Over the last six years, the average 3 bedroom single family home in the Birmingham metro has appreciated at a steady rate of 0.82% per year.
  • In the specific neighborhoods where Real Wealth Network members invest, the 7 year appreciation rate is slightly higher – 0.92% per year.

Birmingham rents are rising at a faster rate than the national average

Birmingham Real Estate Market Monthly Rent 2012-2018

  • During the same six year period (2012-2018) the median rental price for 3 bedroom single family homes has appreciated at a rate of 5.22% per year metro-wide.
  • This information, coupled with the home value data above, shows us that, unlike many U.S. cities today, Birmingham is not experiencing wild appreciation or depreciation swings. This is a good indication that the Birmingham real estate market is more stable than many other markets, which likely makes investing here less-risky.

Birmingham is experiencing consistent growth year after year

Birmingham Real Estate Market Population Growth 2010-2018

  • Since 2010 the population in Birmingham has increased at a steady rate of 0.26%.
  • Total population growth during this time was 1.85%, which is about 65% slower than the national average.

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.

Birmingham Real Estate Market Job Growth 2018

  • Between August 2017 and August 2018 the number of jobs in the Birmingham metro increased at a rate of 1.24%.
  • This shows us that Birmingham is experiencing consistent growth year after year. And although this growth isn’t staggering, it’s another indicator that Birmingham’s real estate market will continue to be stable in years to come.

Birmingham is Affordable

  • Average home prices in Birmingham are still well below national levels, which means investing here is more affordable than many other U.S. cities today.
  • The median price of a fully renovated 3 bedroom R.E.A.L. Income Properties™ ranges from $80,000 to $160,000, which is about 45% lower than home values nationwide.

Birmingham is Cash Flowing

  • 3-bedroom single family homes in Birmingham can rent for more than 1% of the purchase price, which means there’s a strong cash flow opportunity here.
  • The median rent of a fully renovated 3-bedroom R.E.A.L. Income Properties™ is $1,099, which is 1.00% of the median purchase price.

Birmingham is Stable

  • Birmingham is not experiencing wild appreciation or depreciation swings, which makes it more stable than many other U.S. cities today. This means that investing here is likely less-risky than many other markets too.

Birmingham is Steadily Growing

  • Over the last 6 years, Birmingham has experienced both population and job growth at a steady yearly rate. This is a good sign that  this market will continue to be stable for years to come.


Major Employers


News

  • "Ranked #1 in America's Most Affordable Cities" - Forbes
  • "Ranked #1 in America's Next Hot Food Cities" - Zagat
  • "Ranked #7 Most Affordable Market" - Zillow
  • "#2 in Where to Buy a Home if You Can’t Afford a Big Down Payment" - Business Insider
  • "#3 Best Place for a Block Party" - Business Insider
  • "Birmingham Real Estate Market Moving in Right Direction" - Fortune Builders
  • "#7 city for Young Professionals Population Growth" - Birmingham Business Alliance

Learning Resources

Webinar

Benjamin Smith

November 30, 2018

[Webinar] Low Prices & High Cash Flow in the South

Birmingham, Alabama was recently rated the “7th Most Affordable Market for Homebuyers” by Zillow.com. Real estate investors are also drawn to its stab…

Read More

Rich Fettke

November 29, 2017

[Video] Birmingham, AL Real Estate Market Overview

Birmingham Real Estate Market Trends & Statistics 2017-2018 Located in the foothills of the Appalachian Mountains, Birmingham is the most-populous…

Read More
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Property Teams

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Member Relations


Mariah Ferries

Member Relations
 mariah@realwealthnetwork.com
  (925) 280-2830
  (888) 796-3896

15 Min New Member Call

With a 5 year background in providing excellent customer service experiences, Mariah brings her skill and passion to Real Wealth Network as your member concierge. When she isn’t working to help meet your needs with RWN, you’ll likely find Mariah consumed in a good book, finding the next trail to run, or spending time with her friends and family.


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2003

Established


39,120

Number of Members


$573M

Total Value of Assets Acquired by RWN Members


642

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Real Wealth Network, LLC is an educational company and is not acting as a real estate broker. Always seek the services of licensed third party appraisers and inspectors to verify the value and condition of any property you intend to purchase. Never send funds directly to a seller but instead, use the services of professional title and escrow companies.

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