The numbers for the Birmingham Real Estate market are in and they are fascinating!
If you can believe it, the real estate sales market in Birmingham, Alabama is even hotter than it was back at the time of the real estate market crash in 2007 and 2008. Take a look at these graphs from the Alabama Center for Real Estate (ACRE).
The median sales price for a Birmingham home is up almost $30,000 from the high in 2006.
What does that mean for the rental investor?
- There is a natural churn of rental homes right now. We are experiencing it with our portfolio as I’ve heard other managers are. People who were reluctant landlords can now sell their homes since sales prices are up.
- There is still a need for rental homes. 43% of household heads rent. That is up from 35% in 2006 which was the height of the bubble.
- Where are these new renters coming from? Easy, baby boomers getting out of homeownership. (Yes, you read that right). And Millenials who are delaying homeownership.
- The bottom line, there is a need for more housing units and they are being built at a staggering pace right now.
Click this link if you’d like to see the full ACRE Report.
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.