Biringham vs. Huntsville, AL

[Account Closed]

Hello BP.  I'm currently analyzing the Birmingham and Huntsville markets and would like some feedback from investors or professionals who have done business there within the last few years.  My research indicates that both markets have been rather flat with regard to appreciation and monthly rental cost.  Huntsville is actually on the downward trend with monthly rents, however the city seems to be attracting a good number of millennials especially in the tech sector.  I'm thinking that within the next few years, the rental cost curve will start to swing up in Huntsville, at least more so than Birmingham. Is this what you suspect also, or am I wrong?  What are other details I should take into consideration when comparing these two markets? How do you think this information would affect appreciation and/or monthly rents?  I would appreciate your honest feedback. 

[Jason Grey]

Huntsville's rental prices have been relatively flat for the last 2-3 years owing to the fact that they were relatively high for the last 5-6 years. I would say that they are now reaching equilibrium. I would agree with your analysis that rental prices will be on the upswing again soon as over the last several months we have seen major announcements on jobs growth for the Huntsville metro. (Toyota-Mazda plant, Facebook, BAE Systems, etc). Additionally many would be first-time home buyers are being forced to rent because of tight inventory on resales and new home builders not being able to keep up with demand.