The Birmingham Real Estate Market
Why You Should Consider a Birmingham Home
Think about what attracts you to an area. Great schools, a thriving economy, a low cost of living, a low tax burden, continuous growth and copious amenities may have made your list. Birmingham, Alabama, offers all of those things and more. These factors combine to make Birmingham real estate a fantastic investment and Birmingham, Alabama, a wonderful place to live.
Birmingham's Thriving Economy
Birmingham Employment Prospects
One thing that attracts many people to Birmingham real estate is Birmingham's excellent employment prospects. The Alabama economy is strong due to continued growth in the business, education, agriculture and health care industries. At the center of Birmingham's economy is UAB -- Birmingham's single-largest employer. However, there are many places to work in Birmingham outside of UAB. Consider the multitude of small businesses in Birmingham. In 2008, Alabama was ranked the ninth-friendliest state for running a small business by the Small Business Survival Index (SBSI). Forbes.com ranked Birmingham as one of the top-20 best cities for jobs in 2008, ranking among such top Southeastern cities as Atlanta and Raleigh, N.C. In January 2008, Birmingham had the second-lowest unemployment rate among the nation's big cities. In July 2008, Alabama boasted the 13th-lowest unemployment rate in the nation. Shelby County, where Mt Laurel is located, had the lowest unemployment rate in Alabama as of January 2009.
Birmingham's Low Tax Burden
Alabama citizens have a relatively low tax burden. In 2008, the SBSI reported that Alabama had the 12th-lowest income tax rates, the lowest property tax rates in the nation, the sixth-lowest corporate income tax rates, and low electric utilities costs. The 2008 SBSI study reported that Birmingham real estate is taxed at the lowest rate at all income levels for the largest city of any state.
Birmingham's Low Cost of Living
Birmingham's cost of living is 19.76% lower than the U.S. average. In 2006, Birmingham-Hoover's per capita personal income (PCPI) was $37,331, 102% of the national average of $36,714.
Birmingham is in the top-10 best in cost of living and employment rate, ahead of Atlanta; Charlotte, N.C.; and Nashville, Tenn.
Birmingham Homes
If you are looking for a great investment in a city that just keeps growing, consider purchasing Birmingham real estate.
Alabama housing is very affordable compared with other parts of the country. Alabamians are able to buy larger, nicer houses for their incomes. You can go anywhere in Alabama and get a good value on a home. Alabama was the only state in the nation to have 4 cities ranked in the top-10 metropolitan areas in a fourth quarter 2008 home price appreciation index. The Birmingham Business Journal reported that Birmingham now ranks third in the nation for affordable housing, outpacing at least 7 other Southeastern cities. The median home cost in Birmingham is $158,700. Bottom line: Houses for sale in Alabama are generally more affordable than homes elsewhere.
The Birmingham Real Estate Market
With 21% of the state's population, the Birmingham Metropolitan Statistical Area (MSA) is the center of business and cultural life in the state of Alabama. Birmingham ranks No. 3 nationally for affordable housing.
The Birmingham Business Journal recently reported that the Federal Housing Finance Agency ranked Alabama fourth in the nation for home price appreciation between third quarter 2007 and third quarter 2008.
Houses for Sale in Birmingham, Alabama
Birmingham real estate is a smart investment for a major metropolitan area. The Housing Affordability Index for the Birmingham Metro Area in the first quarter of 2008 was 165.3, much better than the U.S. average of 135.8.
The average sales price for a home in Birmingham, Alabama in June 2008 was $196,504. On average, in June 2008, it took a home in Alabama 10.5 months to sell. Birmingham, Alabama, homes were listed for only 93 days in June 2008, tied with Montgomery for the fastest-selling period of any area in Alabama except for Monroe County.
Shelby County Real Estate
When searching for houses for sale in Birmingham Alabama, Shelby County is the place to look.
Shelby County is the fastest-growing county in the state and one of the fastest-growing counties for its size in the nation. Factors contributing to the growth of the county include its proximity to growth corridors such as U.S. Highways 31 and 280 and the desire of new residents to live in areas where their demand for public facilities and services can be met. Despite the growth, population density in Shelby County is quite low, averaging about 178 persons per square mile, with the highest densities being in the northern areas closest to Birmingham.
Even when Birmingham's economy weakened in 2001, growth in Shelby County caused the region's home ownership rate to increase from 68.1% in 1990 to 70.8% in 2000, and then to a record 81% by the end of 2001. Shelby County had the lowest unemployment rate in the state of 4.4% in December 2008 compared with Alabama's 6.7% and the Birmingham MSA's rate of 5.7%.
According to the 2000 Census, there were 59,302 housing units in Shelby County in 2000, a 34% increase from the 1990 census. The number of owner-occupied housing has increased also, at a higher rate than that of renter-occupied units. The median value of owner-occupied units has increased more than 188% since 1980, to $146,700 in 2000.
Focus on Community and Quality of Life
Shelby County is consistently ranked as the best county in Alabama to raise children, according to Alabama Kids Count. The Shelby County school system is ranked as one of the state's best. Shelby County also offers a variety of high quality private schools, including Briarwood, Indian Springs and Hilltop Montessori, and is home to 2 higher-educational institutions: Jefferson State Community College-Scrushy Campus and the University of Montevallo.
In Paths to the Future, Shelby County residents described what they liked best about their communities and what they wanted for the future: "They are focused on community. They want where they live to emphasize the traditional elements of community, combining residential, commercial and public spaces into a livable whole. They want town centers, open spaces and greenways. Hillsides, mountaintops, lakes and streams must be respected in the development process to maintain the beauty and character of the land that most people who move to the county find so attractive in the first place."
Small Town Life and Natural Beauty in Chelsea
Shelby County's Chelsea district is one of the fastest-growing parts of the county because of its location along Highway 280. In Shelby County Town Hall and Community Building meetings held in 2002, Chelsea-area residents said what they most enjoy about the district is the small-town atmosphere in a rural setting, in particular the natural beauty -- mountains, lakes, trees and farms -- and diverse wildlife of the area. They value the convenience of retail and schools, the metro location, the good school system and the focus on family.
They also said that they are concerned about the impact growth will have on the environment. While growing, the community wants to maintain its character, integrity and personality. The residents don't want typical urban development that clear-cuts the land. They want community walking trails; sidewalks that connect with open space; and community landmarks, bike paths and greenways.
Smart Growth: Mt Laurel
What they want describes the new town of Mt Laurel, located in the Chelsea district just 3.2 miles north of Highway 280 on Dunnavant Valley Road (Highway 41). Nestled along the western face of Double Oak Mountain, the town has an interconnected system of community walking trails that meander through 535 acres of pristine woodlands leading to the 11-acre Spoonwood Lake.
Mt Laurel is a master planned community, also known as a Traditional Neighborhood Development (TND). Designed in harmony with the natural landscape, it has the great qualities of small-town life -- homes with front porches, safe and friendly tree-lined streets, and a pedestrian-oriented town center -- while providing all of today's needs for comfortable living, including access to high-speed communications technology.
To learn more about Birmingham real estate or buying or building a home in Mt Laurel, call (205) 408-TOWN.
Housing Affordability Index
The Housing Affordability Index (HAI) is the ratio of an area's median family income to the income needed to purchase and finance the area's median-priced home. An index score of 100 means that a family earning the median income has just enough buying power to purchase a median-priced home. The higher the score, the more expensive a home a median-income family can afford.