Birmingham Alabama Real Estate Market
Overview, Focusing on Shelby County
Houses for Sale in Alabama | Alabama Homes | Real Estate Market | Houses for Sale Birmingham | Shelby County Real Estate | Focus on Community | Small Town Life | Smart Growth
Houses for Sale in Alabama
If you are looking for a great place to relocate, consider looking for homes in Alabama. In July 2008, there were 12,580 homes for sale in Birmingham, Alabama, at great prices in a multitude of diverse and beautiful settings.
The Alabama economy is strong due to continued growth in the business, education, agriculture and healthcare industries.
In 2008 Alabama was ranked the ninth friendliest state for running a small business by the Small Business Survival Index (SBSI). Alabama citizens have a relatively low tax burden. Birmingham's cost of living is 19.76% lower than the U.S. average. In 2008 the SBSI reports that Alabama has the 12th lowest income tax rates, the lowest property tax rates in the nation, the 6th lowest corporate income tax rates and low electric utilities costs. In 2006 greater Birmingham had a per capita personal income (PCPI) was $37,331, 102 percent of the national average, $36,714.
Alabama has very affordable housing compared to housing in other parts of the country. Alabamians are able to buy more expensive houses for their income. You can go anywhere in the state and get a good value on a home. The median home cost in Birmingham is $158,700. Bottom line: houses for sale in Alabama are generally more affordable than homes elsewhere.
| Housing Affordability |
| 1st Quarter 2008 |
US |
Alabama |
Birmingham |
| Housing Affordability Index |
135.8 |
169.4 |
165.3 |
| Median home price |
$196,333 |
$132,280 |
$154,967 |
| Median income |
$61,500 |
$51,700 |
$59,100 |
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. In January 2008 Birmingham had the second lowest unemployment rate among the nation's big cities. In July 2008 Alabama boasts the 13th lowest unemployment rate in the nation and a No. 3 ranking nationally for affordable housing.
| Quick Facts for Birmingham-Hoover MSA |
| 2006 Population: 1,100,071 |
| 2007 Estimated Number of households: 440,039 |
| 2007 Estimated Average Household Income: $63,343 |
| Ave. temperature: 61.8 degrees |
| Ave. rainfall: 54.84 inches |
| Ave. snowfall: 1.4 inches |
| Ave. # days of precipitation: 126 |
| Ave. # days max. temperature above 90: 53 |
| Ave. # days min. temperature below 32◦: 47 |
| Birmingham one of the top 11 most livable medium sized cities in 2004. |
| Hoover ranked 20th most desirable place to live in 2004 for Eastern Region Cities under 100,000 population |
| #1 city for women for healthcare in 2002 |
| 17th best city for childcare in 2002 |
| Birmingham-Hoover was one of Expansion Management’s 50 hottest cities in 2007. |
| In 2008 Alabama has one Fortune 500 company and four Fortune 1000 companies. |
| Lowest real estate tax burden for largest city in any state in
2006. |
| Overall cost of living 96.4% of the US average of 100 in spring 2004 |
| Healthcare costs 90.2% of the US average in spring 2004 |
| Housing cost of living 86.3% of the US average in spring 2004 |
Birmingham Alabama real estate is a smart investment for a major metropolitan area. The 2008 SBSI study reported that Birmingham has the lowest property tax burden at all income levels for the largest city of any state. The Housing Affordability Index for the Birmingham Metro Area in the 1st quarter of 2008 was 165.3, much better than the US average of 135.8.
In July 2008, there were 12,580 homes for sale in Birmingham, Alabama. The average sales price for a home in Birmingham in June 2008 was $196,504. On average, it took a home in Alabama 10.5 months to sell in June, 2008 while 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.
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 US 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 homeownership 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 3.4% in June 2008, compared with the State’s 4.7% and the Birmingham MSA’s rate of 3.7% in May 2008.
| Profile Selected Socio-Economic Statistics U.S. Bureau of the Census, 2000 |
| Geographic area |
Median HH Income |
% Employed Management Professional Related |
% Families Below Poverty Level |
Owner Occupied Housing Units |
| Alabama |
$34,135 |
29.5% |
12.5% |
72.5% |
| Birmingham MSA |
$39,278 |
34.4% |
10.2% |
70.7% |
| Shelby County |
$55,440 |
42.9% |
4.6% |
81.0% |
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.
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 quality private schools—including Briarwood, Indian Springs, and Hilltop Montessori,-- and is home to two higher educational institutions: Jefferson State Community College and the University of Montevallo.
In Paths to the Future, Shelby County residents described what they like best about their communities and what they want 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."
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 green ways.
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.
These are some of the things current Mt Laurel residents say they like about the town:
- Wonderful place to walk, closeness of shops. Safe place to raise children. Beautiful architecture. Feeling of community and the preservation of nature.
- Community atmosphere without compromising nature.
- Small town feeling. Everyone is very nice and helpful. Really safe here.
- Neighborhood, charm, atmosphere, school being built.
- Small town feel. Knowing many of your neighbors.
- Everything – the people, the trees, the atmosphere, truly is a walking community.
- Old style of neighborhood, pedestrian friendly area, frequent personal interaction, attractive homes, walking convenience.
- The natural beauty, the Smart Growth/conservation philosophy, the architectural style, the community concept.
- Hardware store, sidewalks, lake, playground, basketball courts, lawn, fire station.
- Unique community. No other place in Birmingham like it!
To learn more about buying or building a home in Mt Laurel call 205-408-TOWN.
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.
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