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 $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.

• 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

• 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

• 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

• 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.

• 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.