Birmingham is the largest city in Alabama and is located in the center of the state, away from the Gulf Coast hurricanes. Real estate investing in Birmingham benefits those looking for cash flow. Since Alabama has the second-lowest property taxes in the nation, home prices are still affordable, and it’s possible to generate a higher-than-average monthly income from investment properties. Birmingham also has a diverse economy and is very stable. It is not prone to boom-and-bust cycles. These are a few reasons Birmingham investment real estate is a great option for new and experienced investors.
Birmingham Investment Opportunity Quick Facts
- Investment Objective: Higher cash flow, lower appreciation
- Types of properties for sale: REAL Income & New Construction SFRs in A, B, and C neighborhoods
- Average home price: $120,000-$270,000
- Average monthly rents: $1,200 – $1,800
Why Birmingham Real Estate is a Good Investment
Birmingham real estate is a good long-term investment for buy-and-hold investors seeking to maximize cash flow with minimal capital. This is true for those looking to buy both renovated and new construction properties.
It’s important to note that Birmingham properties don’t appreciate much, usually in line with inflation. This market is all about cash flow.
There are a variety of factors that make Birmingham real estate a good investment today.
- Affordability: The average home in the Birmingham metro area is 40% more affordable than the national average.
- Solid Appreciation: Home prices in Birmingham have risen by 130% since 2014. Although this is 10% below the national average, it’s a sign of a stable and growing market.
- Steady Population Growth: The population of the Birmingham metro area increased by 21% between the 2010 and 2024 censuses, 110% faster than the national average.
- Considerable Job Growth: For 2025, forecasters predict that the Birmingham-Hoover MSA will add between 3,700 and 8,100 new jobs.
Birmingham Turnkey Investment Property for Sale
The turnkey rental property teams we work with near Birmingham sell single-family homes, both new construction and renovated, to our REAL Income Property standards. These teams primarily sell in more affordable suburbs of the city, including Tuscaloosa.
