We’ve reported lately how Birmingham real estate has been heating up, and commented on how the city’s real estate scene is drawing attention across the country. That trend seems to be continuing, according to the latest stats released by the U.S. Census Bureau. According to the Census, more permits to build new homes were issued in 2013 than in 2012 for the Birmingham – Hoover market. This figure also beat the three-year moving average, which is a powerful sign of sustained growth. The Greater Birmingham Association of Home Builders agrees with the sentiment; they expect a slow but steady growth in new home construction each year until activity returns to pre-recession levels somewhere around 2018. And even though lending conditions are tighter than what we became used to before the market crash, and although fewer homebuilders are in business today than before, activity – in both price increases and in demand surges – should continue to rise. For 2013, 3,046 permits were issued. That means 3,046 potential new homes to add to the economy and provide a helpful boost to area prices, more than the 2,994 issued last year and the paltry 2,362 issued in 2011. The three-year average is just 2,800, meaning we are well on our way to higher numbers and bigger boosts. Investors in today’s market have an excellent opportunity to take advantage of real estate momentum and put down stakes in the Birmingham market. Market conditions aren’t quite ready for flipping, which means the best play is a sustained one: buying solid properties and watching them appreciate in value while turning them into rental properties and collecting rent revenue over the next few years. For this move, gkhouses.com is well situated to help. Contact gkhouses.com for more information and guidance on making a move in the Birmingham market.
Matthew is the CEO of Evernest. He is a student of the book Good to Great and is passionate about building the best property management company on the planet (and maybe even the universe if Elon Musk will hurry up). You can usually find Matthew at the baseball field with his son, at a dance recital with his daughter, or at his favorite restaurant with his wife, when he’s not in the office. And if you can’t find him in any of those places, it probably means he’s traveling.