Birmingham Real Estate Market Data and Information by Property Class
Alabama is similar to all other states regarding property class. They are driven mainly by school systems and crime statistics. Since Birmingham is a smaller MSA the per capita rates for crime are skewed and typically reflect more crime than actually happens.
Homewood is a Class A area however, due to recent annexations the crime stats reflect an area of higher than normal crime. Homewood is an affluent suburb of Birmingham. It was chosen as a comparison to show this fact. It has one of the highest median home values and income in the state. The school system is consistently rated in the top 5 of the state. This is a predominately owner-occupied market.
Tarrant City is a lower income area that is a predominately tenant-occupied market that receives assistance in one form or another. This area consistently rents above market. It is a higher crime area of Birmingham.
Birmingham is not the crime filled market data would typically suggest. It consists mainly of domestic abuse and/or petty vandalism.
Investing by Correct Usage by Market Area
If you are investing in Birmingham I ask you do your own research to verify the data provided. Class C & D areas are the best markets for renting properties. The Class D areas in Birmingham would likely be Class C areas in other markets however, the classes have been assigned based on local activity and knowledge of the markets as a whole for Birmingham and the MSA.
LAS Companies only invests in Class C or D areas since the return is higher and the pool of potential occupants never decreases. In Class A or B areas the return is lower since the entry prices are higher and the return is typically half of predominately rental areas. If you are investing for cash flow it is better to invest in areas that reflect your goals instead of investing in areas that do not offer the returns you are seeking.
Market Data by Area in Birmingham
Comparison by Class
Homewood – Class A
Median Home Value – $379,563
Median Household Income – $66,573
Individuals Below the Poverty Level – 11.1%
Crime Index – 8 out of 100 (100 being Safest)
School System – Top 10 in the State
Average Market Rent – $1,420
Alabaster – Class B
Median Home Value – $179,984
Median Household Income – $73,325
Individuals Below the Poverty Level – 10.2%
Crime Index – 40 out of 100 (100 being Safest)
School System – Top 50 in the State
Average Market Rent – $1,362
Centerpoint – Class C
Median Home Value – $117,940
Median Household Income – $39,134
Individuals Below the Poverty Level – 26.7%
Crime Index – 12 out of 100 (100 being Safest)
School System – Lower 3rd of State
Average Market Rent – $1,162
Tarrant – Class D
Median Home Value – $73,542
Median Household Income – $26,800
Individuals Below the Poverty Level – 32.6%
Crime Index – 1 out of 100 (100 being Safest)
School System – Lower 3rd of State
Average Market Rent – $1,045
Links to Support Real Estate Market Data Analysis for Birmingham