If you are thinking of buying Birmingham Investment Properties in 2022, you might be wondering whether it is the right decision or not. Well, for a start let us know a little bit about this beautiful city of Birmingham. It is in no doubt the most populous city in the state of Alabama. Several factors have led to the truth of this statement. It is 330 square kilometers of land and 5.2 square kilometers of water. The city was first founded in the year 1871 AD.
Since then, the city of Birmingham, Al has seen an upward trend in terms of its population growth. One of the factors that have led to this increase is its rich nature of mountainous ridges and a good share of physical scenery. Since its year of discovery, the city has been an educational center in the state of Alabama and has been the favorite destination of many educational aspirants who come here to seek careers of their choice. 100's schools have been set up in the city of Birmingham and several top-notch universities.
The city's ever-growing population shows a need for real estate investments and developments for the good of the new growing population. Birmingham is home to world-class medical research, a celebrated food and arts scene, and the Birmingham Civil Rights National Monument. It has been voted one of the nation’s most livable cities with a thriving community and more green space per capita than any other city in the nation. There has been a steady increase in Birmingham home values at 10% in the past year.
The forecast for the next 12 months is that it will be a seller's real estate market and the prices will increase. Therefore, buying Birmingham investment properties is considered to be a wise decision by experienced real estate investors who know the market very well. The Birmingham AL real estate market continues to take steps in the right direction in 2020. Lets us discuss the major economic developments and 12 great reasons to go for Birmingham real estate investing in 2020.
Economic Developments In Birmingham, Alabama
Birmingham is an affordable market with growing demand for housing. A seller's market arises when demand exceeds supply. In other words, there are many interested buyers, but the real estate inventory is low. Since there are fewer homes available, sellers are at an advantage. As economies grow, the supply of money tends to become less restrictive. As money becomes easier to borrow, more home buyers enter the housing market. With easier lending requirements making more buyers available, inventories of homes go down or take less time to sell.
In the census of 2010, the city of Birmingham, AL had registered two 212,237 members of the public. Vast development projects with some great comebacks have been made in the city with buildings such as Wells Fargo Tower being acknowledged as the tallest building in the state of Alabama until 2007 when the RSA Battle House Tower was built. 100-year-old insurance agency, Fisher Brown Bottrell Insurance, has opened its first Alabama office in Birmingham.
According to the Mayor of Birmingham, the city is experiencing a unique surge in energy around enhancing the city’s innovative capacity, primarily centered on the “Innovate Birmingham” initiative. He announced that Birmingham Innovation will construct a 100-gigabyte network to increase internet accessibility to the city. Mayor William Bell said the city has seen growth in the neighborhoods beyond the building permits.
Community Safe Rooms are being built in Smithfield Estates, North and Central Pratt, and Sandusky at a total cost of $3.4 million. The building permits throughout the city’s neighborhoods are up 11.6 percent, and downtown is experiencing a building boom of more than $1 billion. The total valuation of construction is up by 50.7 percent. There are proposed developments at the CrossPlex Village and Ensley Public Safety Complex and additions to the revitalization in Woodlawn, Avondale, and East Lake.
The metro region has seen an increase of over 14,400 jobs under the Mayor's administration with major contributors like Kamtek, LabCorp, and Oxford Pharmaceuticals. Great profits have been reaped by real estate investors who bought Birmingham investment properties in the past, and I am sure that many more investors from across the US will come in with time to exploit the vast real estate market of Birmingham.
The development forecast for the coming years seems promising with some great prospects. If I was an investor, would I be in luck investing in Birmingham investment properties? Well, how about we discuss the city's developmental progression and get the answer. Birmingham, AL would be a great place for real estate investment with an overall Niche grade of B-. This puts the city of Birmingham ahead of many other cities in the US.
Why Should You Invest in Birmingham Investment Properties?
More Reasons to Invest in Birmingham Properties
- For one, the city harnesses diversity by having different people living together in harmony and unity. Crime rates are minimal in the area meaning security over time is improving.
- An interesting fact about Birmingham is that the rent percentage of housing is higher than the buying rate. What this means is that the rate at which natives buy houses is lower than the renting rate with a difference of 6%.
- The buying rate is at 47% while renting rate is at 53%. This would be a good figure for anyone interested in investing in the area, especially in building rentals and accommodation rooms.
- Another interesting fact about the city is that it is ranked 36 among the 228 cities with the lowest cost of living in America. The reason for the fast invasion of new inhabitants is now clear.
- The Real estate cost in this city is ranging from $50,000 to $100,000 for the buyers and ranges from $500 to $1000 for rent. This is one of the most affordable deals in the real estate market.
- The city is rated as a suburban city that is moving in the right direction. There are great public schools in the city of Birmingham enhancing quality learning for students.
- An investor who would come in to exploit the needy real estate market here would make great profits and also help out the residents when it comes to raising living standards.
- Not only jobs but also housing facilities are required to cater to students. New real estate developments need to be made to house the learned percentage of the masses undertaking studies in the different Universities in Birmingham, and this shows the truth of the statement that it is an educational center for Alabama.
- As per Zillow, Birmingham market trends indicate an increase of 23.9% in typical home values over the past year.
- The typical value of homes in Birmingham is currently $105,772.
- Birmingham's housing market remains among the most affordable markets in the nation, which looks good for homeowners, investors, and renters alike.
- Birmingham is a steady real estate market where investors can purchase Birmingham investment properties for $80,000 to $100,000. This makes it a prominent place for new investors to get their feet wet and for anyone searching for a good investment that can create a stable monthly rental income.
- Birmingham was ranked #1 in America's Most Affordable Cities by Forbes.
Where To Buy Investment Property in Birmingham, AL?
There are around 92 neighborhoods in Birmingham, AL. Highland Park has a median listing price of $699K, making it the most expensive neighborhood. Ensley Highlands is the most affordable neighborhood in Birmingham, with a median listing price of $65,000 on Realtor.com, a real estate listings website. Some of the best neighborhoods in Birmingham, Alabama are Highland Park, Greystone, and Crestwood South. Here are some of the best neighborhoods in Birmingham where you can consider buying investment properties.
1. Huffman – Birmingham, AL
Huffman is a quiet and peaceful area in Jefferson County. Living in Huffman offers residents a dense suburban feel and most residents own their homes. The Typical Home Value in Huffman is $175,165 (Zillow Home Value Index). Huffman's home values have gone up 24.1% over the past year. Huffman is a seller's market with growing demand, which means that there are more people looking to buy than there are homes available.
2. Spring Lake – Birmingham, AL
Spring Lake is also in Jefferson County. It is a suburban neighborhood and most residents own their homes. The Typical Home Value in Spring Lake is $186,383 (ZHVI). Spring Lake home values have gone up 23.4% over the past year. Spring Lake is a seller's market with growing demand in 2022, which means that there are more people looking to buy than there are homes available.
3. Liberty Highlands – Birmingham, AL
Liberty Highlands is a neighborhood in Birmingham that offers an urban feel and most residents own their homes. The Typical Home Value in Liberty Highlands is $136,348 (ZHVI). Liberty Highlands home values have gone up 33.5% over the past year. According to Realtor.com, Liberty Highlands is a VERY HOT SELLER'S MARKET. It ranks in the top 13% of neighborhoods in the area and the top 30% in the U.S. Homes sell 17 days faster and are 12% more popular than homes in the surrounding area. Hot markets attract more buyers and sellers, resulting in a higher competition and faster sales.
4. East Thomas – Birmingham, AL
East Thomas is an urban neighborhood in Birmingham. The Typical Home Value in East Thomas is $54,532 (ZHVI). East Thomas home values have gone up 24.0% over the past year. It is an affordable neighborhood in Jefferson County.
5. Hooper City – Birmingham, AL
Hooper City is a large suburban neighborhood in Birmingham. The Typical Home Value in Hooper City is $48,678 (ZHVI). Hooper City home values have gone up 20.1% over the past year.
6. Sherman Heights – Birmingham, AL
Sherman Heights is an urban neighborhood in Birmingham. The Typical Home Value in Sherman Heights is $234,645 (ZHVI). Sherman Heights home values have gone up 17.7% over the past year. Sherman Heights is a seller's market with a growing demand in 2022, which means that there are more people looking to buy than there are homes available.
7. Roebuck – Birmingham, AL
Roebuck is an urban neighborhood in Birmingham. The Typical Home Value in Roebuck is $119,912 (ZHVI). Roebuck home values have gone up 23.9% over the past year. Realtor.com shows there are currently 31 homes for sale in Roebuck, Birmingham. Roebuck is a seller's market with a growing demand for real estate, which means that there are more people looking to buy than there are homes available. In April 2022, the median listing home price in Roebuck was $112.9K, trending up 18.8% year-over-year (Realtor.com). The median listing home price per square foot was $86. The median home sold price was $112K.
8. Bush Hills – Birmingham, AL
Bush Hills neighborhood in Birmingham offers a suburban feel and most residents own their homes. The Typical Home Value in Bush Hills is $98,070. According to ZHVI, Bush Hills' home values have gone up 37.8% over the past year. As of April 2022, Bush Hills is a balanced market which means that the supply and demand of homes are about the same. A balanced market typically has a total sales to total listings ratio between 0.12 and 0.2. In April 2022, the median listing home price in Bush Hills was $145K, trending up 34.8% year-over-year. The median listing home price per square foot was $85. The median home sold price was $153K.
9. Crestwood North – Birmingham, AL
Crestwood North is a suburban neighborhood and one of the best places to live in Alabama. The Typical Home Value in Crestwood North is $367,476. As per Zillow, Crestwood North home values have gone up 18.6% over the past year. Crestwood North is a popular neighborhood for home buyers who can afford to buy a home at the median price of more than $350K.
It is a seller's market with a growing demand in 2022, which means that there are more people looking to buy than there are homes available. In April 2022, the median listing home price in Crestwood North was $339.3K, trending up 6.3% year-over-year. The median listing home price per square foot was $228. The median home sold price was $355K on Realtor.com.
10. Roebuck Springs – Birmingham, AL
Roebuck Springs is a suburban neighborhood in Birmingham. The Typical Home Value in Roebuck Springs is $227,479, which is an increase of 24.4% over the past year. Roebuck Springs Historic District is a popular neighborhood for home buyers who can afford to buy a home in the median price range of $237K. In April 2022, the median listing home price in Roebuck Springs Historic District was $237.5K, trending up 18.8% year-over-year. The median listing home price per square foot was $119. The median home sold price was $250K.
Birmingham, AL Housing Price Trends 2022
Housing market trends for Birmingham, AL seem promising for investors as houses for buying are moderately expensive. Price increases in the Birmingham housing market were largely driven by increased demand amid tight inventory. This shift has resulted in price growth in the Birmingham area approaching the state and national averages, at 13 to 14 percent from a year ago. In 2022, home price growth is expected to slow to 7 to 9 percent year on year, as rising mortgage rates and affordability concerns dampen consumer demand.
According to a report published by Alabama Center for Real Estate (ACRE), Birmingham residential sales for the first quarter of 2022 totaled 3827 units, representing a decrease of 298 transactions when compared to 4125 units that were sold in the first quarter of 2021. The median selling price in Birmingham for the first quarter of 2022 was $277,550, a 12.06% increase from the first quarter of 2021's the median selling price of $247,683. The inventor was down in the last quarter. The residential units available for sale in the first quarter of 2022 decreased by 1535 units when compared to the same period last year.
The typical home value in Birmingham is $103,431 (Zillow Home Value Index). This value is seasonally adjusted and only includes the middle price tier of homes. Birmingham home values have gone up 23.5% over the past year and 121% over the past decade. According to statistics from NeighborhoodScout, in the past year, Birmingham's rate of appreciation has been 16.22 percent. The most recent quarter's house appreciation rates in Birmingham were 6.07 percent, which amounts to an annual appreciation rate of 26.57 percent. It shows that the forecast is positive for this year as well.
Birmingham Investment Properties For Sale on Norada
The advantages of investing in Birmingham real estate are that they will give you a 100% guarantee of returns and a great profit over time. Mortgage rates are ever increasing in Alabama State and a few years, business centers and market centers will be set up in Birmingham. The natural beauty of this city will attract many different residents to live in the area.
The famous tourist attraction sites such as the Shades Valley, the Red Mountain on the north of the city, and the most magnificent the Cahaba River basin, are calling back people to the city of Birmingham. The city was named among the United States' most diverse ecosystems. For Birmingham investment properties, you need to pay the lowest taxes in the US.
This article aimed to educate and motivate investors to buy Birmingham Investment properties. However, we always recommend doing your research and taking the help of a local real estate consultant. Birmingham's development in the next coming years is a positive sign for the real estate investors looking to buy investment properties in Birmingham, Alabama. Buying an investment property is different from buying an owner-occupied home.
Norada's Birmingham investment properties for sale are designed to make money as rentals, which means you must look at it solely as an income-producing entity just like any other business. These are “Turnkey Cash Flow Investment Properties” located in some of the best neighborhoods of Birmingham, Alabama.
Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor is your ability to find great real estate investments. According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
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Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.