Birmingham is the largest city in Alabama and is located in the center of the state, away from hurricanes in the Gulf. Real estate investing in Birmingham benefits those looking for cash flow. Since Alabama has the second lowest property taxes in the nation and home prices are still affordable and it’s possible to generate 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 that make Birmingham investment real estate 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-$265,000
- Average monthly rents: $1,000 – $1,750
Why Birmingham Real Estate is a Good Investment
Birmingham real estate is a good investment for long-term, buy-and-hold investors who want to maximize their cash flow with minimum 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 30% more affordable than the national average.
- Solid Appreciation: Home prices in Birmingham have risen by 83% 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 12% between the 2010 and 2023 censuses, 40% faster than the national average.
- Considerable Job Growth: According to a recent report from the U.S. Bureau of Labor Statistics (BLS), the Birmingham-Hoover metro area created over 16,000 jobs between 2022 and 2023. This is the fifth-highest employment growth rate in the nation.
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.
