Huntsville Real Estate Market 2023

Huntsville Real Estate Market Trends & Statistics 2023

Huntsville is a city that has always been known for its aerospace and defense industries, but it has also become a hub for information technology, bioscience and advanced manufacturing. This diversification makes Huntsville’s economy one of the most stable in the country.

In 2021, Huntsville was ranked eighth among the top 120 U.S. citieswhere it pays to buy a long-term rental property. The SmartAsset study looked at factors like affordability, cash flow and population growth to determine which cities were most profitable for long-term rentals.

This section explores the top factors that make the Huntsville market one of the most popular real estate markets to invest in today, including affordable home prices, cash flow, population growth and job growth. You will also find trends related to Huntsville’s housing market, population and employment in the tabs above.

Data Sources:

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

Median home values stats and descriptions

The median home price in Huntsville as of July 2022 was $293,797. This is 14.42% lower than the national average home price.

In neighborhoods where members of RealWealth invest, the median home price is around $145,000.

The Huntsville real estate market is competitive, with a Redfin Compete score of 64 out of 100. Homes sell for around list price, and go pending within 28 days of being listed.

Median Monthly rent stats and descriptions

Huntsville has become one of the most in-demand renter hubs in the south, with tenants attracted by the city’s affordability, slower pace of life, and growing job opportunities.

The average monthly rent for single family homes and apartments in Huntsville is $1,498, which is 24% less than the average monthly rent in the United States of $1,973. The average rent-to-value ratio for Huntsville metro is 0.51, 10% lower than the average RTV ratio (0.57) of the US rental real estate market. In areas where Realwealth members invest, the average RTV ratio is 0.93%.

The Huntsville area favors renting over buying, with a price to rent ratio of 16.3. Renters comprise 43% of the local housing market and the vacancy rate is at 5%.

Median home value appreciation rate 2014-2022

The Huntsville housing market has seen a lot of change in the past eight years. From 2014 to 2022, home prices grew by 86.25%, from $157,746 to $293,797. That’s a yearly average appreciation rate of 9.29% per year—which is close to the average appreciation rate for United States homes (9.10%).

Between July 2021 and July 2022, Huntsville’s home prices increased by an average of 19.4%, from $246,082 to $293,797.

Median monthly rent appreciation rate 2014-2022

Huntsville’s rent price growth has almost kept pace with its home price appreciation rate over the last decade.

According to Rent Cafe, the Huntsville metro area is ranked 10th in the country for hottest rental market, with 12 prospective renters for every available place.

The average rent in Huntsville has increased at an average annual rate of 7.72% over the last 8 years. During this period, the average rent increased by 68.3%.

The Huntsville metro area has seen unprecedented growth over the last eleven years.

Its population has increased by an average of 1.83% per year since 2010. Metro Huntsville has grown by almost 20% in the last 11 years, 173% higher than the national average growth rate for the same period.

The city of Huntsville—which is home to Redstone Arsenal and NASA’s Marshall Space Flight Center—has experienced rapid growth over the last 11 years. In 2021, it overtook Birmingham to become the largest city in Alabama.

The Huntsville metro area currently has a population of 502,728. The population of the Huntsville metro area is expected to reach 530,000 by 2030.

Huntsville is similar to many other US cities in that it lost jobs during the pandemic, but jobs are growing steadily. Since the start of the pandemic, there has been a 2.4% increase in jobs in the Huntsville metro area.

From July 2021 to July 2022, Huntsville added 5,299 jobs, a growth rate of 2.09%. Huntsville’s growth rate lags the average US growth rate by 45.48%.

But Huntsville’s unemployment rate is low, at just 2.1% in September 2022. The US unemployment rate for the same period was 3.5%.

The government, high-skill career opportunities, and business incentives have driven steady job and economic growth in Huntsville. Major employers in the Huntsville Metropolitan Statistical Area (MSA) include the US Army/Redstone Arsenal, Huntsville Hospital, NASA/Marshall Space Flight Center, SAIC, University of Alabama in Huntsville and The Boeing Company.

Strong real estate appreciation rates

From July 2021 to July 2022, the average price of homes in Huntsville rose 19.4%, from $246,082 to $293,797.

The median price of a home in the Huntsville area has been increasing by 9.29% per year for the last 8 years. Over the last 8 years, Huntsville has also seen its average rent increase by 7.72% per year. The average rent increase per year for the US rental market for the same period was 5.02%.

The top 3 neighborhoods with the highest appreciation rates in Huntsville are Redstone Arsenal, West Huntsville, and Twickenham/Old Town.

Solid rental cash flow opportunities

The rental market in Huntsville is booming due to a shortage of housing and the demand for off campus housing from students attending The University of Alabama in Huntsville and Alabama A&M.

For investors seeking solid cash flow opportunities, fast rent growth in combination with affordable real estate presents a wealth of possibilities. In places where Realwealth members invest in Huntsville, the average RTV ratio is 0.93%, 63% greater than the national average RTV ratio.

Fast population growth

The Huntsville metro area population grew by an impressive 19.9% in the last eleven years, 173% above the national average growth rate for the same period.

U.S. News & World Report ranked 150 large metropolitan areas in the U.S. based on job market, housing affordability, quality of life, desirability, and net migration—and Huntsville came out on top.

In addition to being ranked No. 1 best place to live in the United States, Huntsville was also ranked No. 54 best place to retire; No. 1 best place to live in Alabama; No. 3 most affordable place to live; and No. 16 fastest-growing place.

In 2021, Huntsville became the largest city in Alabama, surpassing Montgomery and Birmingham—so it’s obvious that this is a great place for investors looking for stability and growth.

Steadily growing economy

The Huntsville metro area has seen steady economic growth since the recession, with nonfarm payrolls increasing and the unemployment rate decreasing every year since 2010.

Huntsville has also seen rapid economic recovery from the job losses caused by the pandemic. The area saw a 2.4% increase in jobs between 2020 and 2022. From July 2021 to July 2022, Huntsville added 5,299 new jobs, a growth rate of 2.09%. And those aren’t just any jobs—they’re high-paying ones!

The GDP of the Huntsville Metropolitan Statistical Area (MSA) is nearly $31 billion, according to the Federal Reserve Bank of St. Louis. Over the last decade, GDP growth in the area has averaged yes over 4% per year.

High quality of life ratings

Huntsville is a small town with big city amenities. The cost of living is higher than the rest of Alabama. However, because the community is more affluent, these costs absorb only a moderate portion of the average person’s income.

The city of Huntsville was ranked No. 1 for its housing affordability and quality of life in US News & World Report’s best places to live rankings.

The average home price in Huntsville is 14.42% less than the national average home price.

The cost of transportation in Huntsville is less than in many other cities, although healthcare costs are slightly above the national average. Residents in the growing tech hub enjoy a better commute time, averaging 19 minutes, compared to the national median of 26 minutes.

Newsworthy building developments and projects in Huntsville

MidCity District

MidCity District is a mixed-use retail development project that’s bringing new life to Huntsville, Alabama.

Since 2016, RCP Companies has worked with the City of Huntsville to develop the MidCity District—and it’s been a game-changing success. The project was cited as one of the 12 largest commercial real estate projects in the nation by National Real Estate Investor.

When complete, this $1 billion+ development will include 1,400 apartments and condominiums, 650 hotel rooms and 400,000 square feet of office space. It will also feature 350,000 square feet of retail space, a TopGolf venue and a lineup of shops and restaurants including Huntsville’s first Trader Joe’s.

In September 2022, RCP announced plans for a new $110 million mixed-use development within the Midcity District – called Anthem House. The project will include 330 apartment units, 35,000 square feet of “creative office space” and 32,000 square feet of street-level retail.

Clinton Commons

Huntsville City Council approved a $325 million mixed-use development called Clinton Commons in 2021. The project, which will transform a vacant 13-acre plot of land into a unique place for retail, office space and new restaurants, is expected to be completed in 2025.

The Clinton Commons Phase 1 development will include: 26,000 square feet of retail space; 40,000 square feet of office space; a 100-room hotel; multi-family housing options and an 800-space multi-level parking deck.

Facebook’s Huntsville Data Center Expansion

Facebook announced in 2021 that it would invest $1 billion in its data center located in North Huntsville Industrial Park. The social media company currently operates two buildings on the 1,000-acre campus, which is expected to eventually cover 3.5 million square feet with seven buildings.

Vista at Councill Square

Vista at Councill Square is a new apartment complex in downtown Huntsville. The first phase of the project will include 336 Class A multi-family apartments and townhomes, with retail and office spaces to follow.

The Vista at Councill Square will be built on a 6.1-acre site at St. Clair Avenue and Davis Circle, adjacent to Councill High Park. It’s located in the heart of Huntsville’s downtown area and is close to restaurants, shopping centers, entertainment venues, government offices and more.

Amazon Fulfillment Center

In November 2021, Governor Kay Ivey announced that Amazon plans to open a new 1.1 million-square-foot fulfillment center in the Rocket City. The facility will be located in Limestone County and will provide more than 250 full-time jobs.

The 1 million-square-foot Non-Sortable facility is designed to receive, store, and package heavy or bulky items like home appliances. The Limestone County facility will use innovative technologies and energy-efficient, zero emission powered industrial truck (PIT) equipment.