The thriving economy and burgeoning real estate market in Birmingham, Alabama, make it an ideal location for real estate investing. As the largest city in the state, Birmingham is a nexus for people across the South. Whether you’re new to real estate investing or already hold properties in other locations, work with HomeUnion to diversify your portfolio with a single-family rental home in Birmingham.
A good time to enter the market
Home sales are on the rise in Birmingham, and this is an ideal time for investors to get their foot in the door. Residential home sales increased 12.6 percent year over year, and the gains are eating away at the city’s housing inventory according to the Alabama Center for Real Estate. In February of this year, Birmingham had 7.4 months of housing supply, which represents a 1.5 percent decline from a year prior.
The dip in inventory will likely contribute to increasing home prices, and the shift will probably continue throughout the rest of this year. Home sales have grown steadily during the past four years, and prices have increased 17.3 percent over the same period. By purchasing a home now, investors can capitalize on further increases in home prices while minimizing their initial investment. Additionally, the upward creep in home prices makes renting more attractive for Birmingham residents. Single-family rental properties in the area could benefit from this increased demand.
The need for housing
Steel was the main economic driver in Birmingham historically, but the city now boasts a more diversified economy. The University of Alabama attracts students and faculty from across the country and is the city’s largest employer. The medical research conducted at the school fuels a large health care industry and has prompted several health care services companies to headquarter their organizations in Birmingham.
Maxwell Air Force Base, located in nearby Montgomery, brings in a sizable servicemember population, and the presence of some of the nation’s largest soft drink bottling plants contributes to a massive logistics and transportation industry.
Most importantly, businesses in Birmingham are hiring. Unemployment has dropped consistently in the city over the past few years and currently sits at 4.6 percent, well below the national average of 5.4 percent, according to the U.S. Bureau of Labor Statistics. Continued employment growth will fuel a desire for area housing and could contribute to widespread population growth.
Capitalize on an opportunity
HomeUnion’s expansion into the Birmingham market makes it easy for investors to benefit from Birmingham’s economic strength. Registration on HomeUnion’s site provides access to prevetted properties in the best locations for single-family rental investment across the country. These properties are selected using a combination of in-person research and deep data analytics, and the addition of Birmingham properties will provide investors with more options for intelligent investment diversification.
Purchasing an investment property through HomeUnion is easy. HomeUnion provides access to both national and private financing options, and handles property and tenant management. With HomeUnion’s comprehensive real estate investment services, capitalizing on the opportunities provided by Birmingham has never been easier.