Housing Market Overview
The median home price (often called the average home price), rent costs, affordability metrics, and housing stock characteristics for this housing market.
Housing Market Overview
| Metric | Birmingham | Alabama Avg | US Average |
|---|---|---|---|
| Median Home Price | $87,869 | $158,589 | $242,182 |
| Price Trend (Annual %) | 6.3% | 7.1% | 8.2% |
| Median Gross Rent | $1,036 | $962 | $1,342 |
| Rent Trend (Annual %) | 5.1% | 4.1% | 5.1% |
| Household Income Trend (Annual %) | — | — | — |
The median home price in Birmingham is about 45% lower than in Alabama. Rent is about 8% higher than the Alabama average.
Median Home and Rent Price Trends
Median Home Prices, 2015-2023
Median Rent Prices, 2015-2023
Both home prices and rent are rising in Birmingham, up about 6.3% and 5.1% a year respectively. Home prices are changing faster.
Median rent in Birmingham rose about 44.3% between 2015 and 2023, from $718 to $1,036. Over the same span, rent in Alabama rose about 34.2%.
Affordability
On average, housing unit costs 1.9 yearly household incomes in Birmingham.
Buying the median-priced home in Birmingham costs roughly 7.1 years of rent at the median monthly rate. That is a relatively low price-to-rent ratio, which tends to favor buying over renting in Birmingham. The price-to-rent ratio in Alabama is about 13.7.
| Metric | Birmingham | Alabama Avg | US Average |
|---|---|---|---|
| Median Home Price | $87,869 | $158,589 | $242,182 |
| Median Household Income | $47,111 | $62,318 | $78,145 |
| Price-to-Income Ratio | 1.9 | 2.5 | 3.1 |
Home Prices vs Income Over Time
Between 2015 and 2023, the median home price in Birmingham rose about 43.1%, while median household income rose about 43.0% between 2009 and 2023 — keeping pace with each other.
Income Growth vs Housing Cost Growth (Year-over-Year %)
Compare income and housing cost trends.
Occupancy & Tenure
| Metric | Birmingham | Alabama Avg | US Average |
|---|---|---|---|
| Homeownership Rate | 40.2% | 59.5% | 58.2% |
| Rental Rate | 42.1% | 25.6% | 31.3% |
| Vacancy Rate | 17.7% | 15.0% | 10.6% |
| Median Tenure (years) | 14.0 | 16.0 | 15.0 |
| Median Year Moved In | 2012 | 2010 | 2011 |
Birmingham has a homeownership rate of 40.2%, lower than the Alabama average of 59.5%. Its housing vacancy rate is 17.7%, compared with 15.0% in Alabama.
Housing Stock
| Metric | Birmingham | Alabama Avg | US Average |
|---|---|---|---|
| Average Household Size | 2.18 people | 2.50 people | 2.54 people |
| Median Structure Built Year | 1968 | 1985 | 1978 |
| Median Number of Rooms | 5.3 | 5.8 | 5.5 |
The typical housing unit in Birmingham was built around 1968. On average, 2.2 people live in a home with about 5.3 rooms, staying for about 14.0 years on average.
Frequently Asked Questions
Common questions about the housing market in Birmingham, Alabama.
What is the median home price in Birmingham, Alabama?
The median home price in Birmingham, Alabama is $87,869, lower than the Alabama average of $158,589.
What is the average home price in Birmingham, Alabama?
The typical home price in %s, reported as the median sale price, is %s. The median is used instead of a mathematical average because it is not skewed by a small number of very expensive or very cheap homes, so it better reflects what a typical buyer pays.
What is the median rent in Birmingham, Alabama?
The median gross rent in Birmingham, Alabama is $1,036 per month, higher than the Alabama average of $962.
What was the median gross rent in Birmingham in 2020?
In 2020, the median gross rent in Birmingham, Alabama was $860 per month.
What is the price-to-rent ratio in Birmingham, Alabama?
The price-to-rent ratio in Birmingham, Alabama is about 7.1, meaning it would take roughly 7.1 years of rent payments at the median rent to equal the median home price. That is a relatively low price-to-rent ratio, which tends to favor buying over renting in Birmingham.
Are home prices or rent rising faster in Birmingham, Alabama?
Both home prices and rent are rising in Birmingham, up about 6.3% and 5.1% a year respectively. Home prices are changing faster.
What is the homeownership rate in Birmingham, Alabama?
40.2% of households in Birmingham, Alabama own their home, lower than the Alabama average of 59.5%.
What is the vacancy rate in Birmingham, Alabama?
The housing vacancy rate in Birmingham, Alabama is 17.7%, higher than the Alabama average of 15.0%.