2023 Housing Market Overview
Birmingham Real Estate Market 2023
Birmingham Real Estate Market Overview
Metro Population: 1.2 M
Median Household Income:$38,000
Unemployment Rate:1.9%
Median Home Price*:$238,515
Median Monthly Rent*:$1,341
Birmingham Housing Market Trends
Birmingham Real Estate Market Trends & Statistics 2023
The Birmingham-Hoover metropolitan area has seen considerable economic growth in the last decade. Birmingham’s economy is well-diverse, with heavy investments in sectors such as banking, healthcare, education, manufacturing, and telecommunications. Based on the area’s competitive salaries and relatively low living costs, Greater Birmingham consistently ranks among America’s most desirable places to work and earn a living. There are several factors that make Birmingham a favorable place for property investors in 2022. Among them are its affordable home values, passive income potential, and overall market stability over the last few years. The tabs above provide more information about housing market trends, population, and employment rates in Birmingham.Data Sources:
- https://factfinder.census.gov/
- http://www.deptofnumbers.com/
- https://www.zillow.com/
- RealWealth Property Team Data
Birmingham, AL Median Home Values Statistics and Descriptions
Birmingham, AL Median Monthly Rent Statistics and Descriptions
Median Home Value Appreciation Rate (Compared to Last Year and Last 11 Years)
Median Monthly Rent Appreciation Rate (Compared to Last Year and Last 11 Years)
The Birmingham-Hoover, Al MSA has experienced consistent population growth since 2010 and is currently the largest region in the state of Alabama. By 2023, the population is estimated to reach 1,125,079, despite a slower growth rate than the national average.
The increased job opportunities in Birmingham, Alabama is one of the major factors responsible for the population growth. Population trends in Birmingham are influenced by Sun Belt migration, a continuing phenomenon from the 90s where Americans move from the Northern States to states in the South and Southwestern region of the United States in search of jobs and more favorable conditions of living.
Education is another major driver of population growth in Birmingham. Many well-known universities, including public medical schools such as the University of Alabama at Birmingham School of Medicine and the University of Alabama at Birmingham School of Dentistry, and private institutions such as Samford University and Miles College.
The city of Birmingham seems to be losing residents to outbound migration, but the metro area is still growing consistently.
The job growth rate in the Birmingham metro area increased by almost 3.5% from May 2021 to May 2022, with 18,700 new jobs being created for Birmingham residents.
Birmingham has the highest per capita concentration of healthcare jobs nationwide. The online retail giant Amazon also plans to expand its footprint in the area, creating new job opportunities for residents.
Affordable Real Estate
Homes in Birmingham are affordable, compared to the rest of the country. The average value of Birmingham homes was recently valued at $238,514.86 for the first seven months of 2022, about 30% less than the national average. Homes can be purchased for less than 150k in Birmingham neighborhoods like FultonDale and Pleasant Grove.High Economic Growth Potential
A survey by Thumbtack ranked Birmingham as one of the top cities for millennial entrepreneurs due to its friendly local tax laws, and regulatory environment, as well as the numerous opportunities for training and networking. This is expected to continue as more tech companies flock to the area. Startups such as grocery delivery services and health companies are launching and flourishing in Birmingham, bringing new life and economic potential to the area.Among the Best Cities for Job seekers
According to the U.S Bureau of Labor Statistics, the unemployment rate in Birmingham is at 2.8%, significantly less than the national average of 3.7 percent. In the past year, Birmingham has added about 16,000 jobs. The University of Alabama at Birmingham is the largest employer in the area by far. Other large employers include the United States government, Regions Financial, Compass Bank, Honda Manufacturing of Alabama, Brookwood Baptist Health and Alabama Power Company.Steady home appreciation rate
The Birmingham property market is appreciating steadily, at a significant rate of 8% per year since 2014. Homes are rising in price as supply fails to meet demand. It is also fair to say that the housing market is fairly competitive, with homes moving fast and often selling above the list price.High student population
The University of Alabama at Birmingham (UAB) ranks 15th in federally funded research among public universities. Birmingham also has two-year colleges: Jefferson State and Lawson State. This makes for a sizable student population driving property demand. Homes situated near schools are especially valuable and are usually priced accordingly.Slow but steady population growth
Birmingham has seen less population growth in recent years, but the number of residents is still on the increase. The new developments in the area are bound to attract more migrants looking to move to the Sun Belt.Newsworthy building developments and projects in Birmingham
20 Midtown Phase III
20 Midtown is a long-awaited mixed-use development between Southside and downtown Birmingham. 20 Midtown will include 312 residential apartments, ranging from 400 square feet to 1700 square feet, in its third phase. This five-story building will span an entire city block between 20th Street South and 3rd Avenue South once completed. This project is expected to be completed in late 2022.City Walk BHAM
With the reconstruction of the I-59/20 interstate bridges, the 31-acre area underneath has received new focus and is being developed into a public space that connects all of Birmingham. Visitors and residents can gather in the linear park, which includes a walking trail and sports fields. This development will span 10 city blocks from 15th Street North to 25th Street North and will make various amenities and facilities available for public use once fully open. City Walk Bham will include several features such as a recreational sports space, a regional skate park facility, a performance space, an amphitheater, a dog park, pickleball courts, an outdoor space, and public restrooms. The skate park and roller rink are currently open and there are also plans for a dog park and a beer garden in the area.Tower on Tenth/Building Trades Tower
The Tower on Tenth, formerly the Building Trades Tower, is a 12-story residential building located in Five Points South. The building has been vacant since a fire in October 2015. Restoration Capital Partners LLC, the new owner of the building, is planning to spend $40 million dollars on restoring the property. The aim is to transform the building into a residential workforce housing development. It will house 242 studio and one-bedroom apartments. It will feature a billiards area, a gym with on-demand classes, app-based security, and a Starbucks in the lobby. The project is expected to be completed this year.The Frank
The Frank Nelson Building is located in downtown Birmingham on 20th Street. In 2021, commercial real estate firm Orchestra Partners began a $40M redevelopment of the Frank Nelson Building. Now, Orchestra Partners has selected residential management firm, Common to lease out the 180 studio and one-bedroom apartment units, in a project tagged “Common at the Frank.” Leasing applications are now available for the apartment community and residents will begin to move in by November.Protective Stadium
The Protective Stadium is owned and operated by the Birmingham-Jefferson Civic Center Authority. In exchange for naming rights, financial services company Protective Life will pay one million dollars per year for 15 years. The stadium has a capacity of 47,100 and it hosted the opening and closing ceremonies of the 2022 World Games. It also serves as the home field for the UAB Blazer football team.Major Employers in Birmingham
News
- "Ranked 3rd for economic growth potential based on national 2019 survey" - BhamNow
- "Ranked one of the top American cities of the future" - FDI Intelligence
- "Saw the third greatest increase in investor home buying activity from 2021 - 2022" - Forbes
- "Governor Kay Ivey announces growth projects pumping $7.7 billion into Alabama’s economy" - Alabama.gov
- "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
Property Teams
Property Team details can only be viewed in the Realty Portal, which can be accessed by RealWealth members who are logged in at Realty.RealWealth.com.
Sample properties
Sample properties can only be viewed in the Realty Portal, which can be accessed by RealWealth members who are logged in at Realty.RealWealth.com.
Disclaimer: The information provided on this page is for educational purposes only. RealWealth makes no warranty or representation as to the accuracy, completeness or reliability of this information. Please be advised that this content may contain errors, is subject to revision at all times, and should not be relied upon for any purpose. Under no circumstances shall RealWealth be liable to you or anyone else for damage stemming from the use or misuse of this information.