About the Huntsville Housing Market

Huntsville is the second most populous metropolitan area in the state of Alabama. More than 40 Fortune 500 companies including Booz Allen Hamilton, Lockheed Martin and Jacobs Engineering Group have branches in Huntsville. Huntsville has the nickname “Rocket City” due to its close ties with NASA.

The GDP of the Huntsville Metropolitan Statistical Area, according to the Federal Reserve Bank of St. Louis, is nearly $31 billion and has grown by nearly 40% over the last 10 years.

Huntsville is a technology hub where the military and NASA have created a strong presence. The top employer is Redstone Arsenal, an army base that employs over 31,000 people. Between 2010 and 2021, Huntsville’s population grew by 19.9% at an annual rate of 1.83%.

Huntsville offers a steady job market that pays STEM workers above average salaries and a growing population (38% of whom are renters). You can expect good returns on investment from your property as well, since the area has been growing rapidly over the last 10 years.

Median Household Income: $76,963
Metro Population: 502,728
11-Year Population Growth: 19.9%
Median Home Price: $293,797
Median Rent Per Month: $1,498 (0.51% rent-to-value ratio)
1-Year Equity Growth: 19.4%

8-Year Equity Growth (January 2014 – December 2022): 86%
1-Year Rent Growth: 10%
8-Year Rent Growth (January 2014 – December 2022): 68%
Job Growth: +5,299 CES jobs created over the last year
1-Year Job Growth Rate: 2.09% (45% lower than the national average)
Unemployment Rate: 2.2% (40% lower than the national average
Tenant Laws: Landlord-Friendly

What to Like
Plenty of job opportunities
Low home prices
Low cost of living
Strong sense of community

What to Watch Out For
Smaller market
Weather can be challenging
Traffic issues
Lack of diversity

– Huntsville’s economy is one of the most stable in the country due to its diversification. The city has always been known for its aerospace and defense industries, but it has also become a hub for information technology, bioscience and advanced manufacturing.
– The median home price in Huntsville is $293,797, which is 14.4% lower than the median home price in the United States.
– Median home prices in Huntsville have increased by 86% in the last 8 years, growing by 9.29% per year.
– In Huntsville, the median monthly rent is $1,498. This represents an increase of over 68% in the last 8 years.
– Huntsville rent prices have been increasing by 7.72% per year since 2014.
– In the last 11 years, the population of the Huntsville metro area has jumped 19.9%, from 419,276 in 2010 to 502,728 in 2021. The population of the Huntsville metro area has been growing at a rate of 1.83% per year.

Affordable real estate
Home prices in Huntsville are also lower than the national average; the median home price of $293,797 (2022 average) is 14.42% lower than the national median of $343,292. The average monthly rent for single family homes and apartments in Huntsville is $1,498—this is 24% less than the national average of $1,973!

Strong job growth
Job Opportunities: Huntsville’s robust economy has created numerous job opportunities across various sectors. The city is known for its strong presence in aerospace and defense industries, but it has also witnessed growth in sectors such as engineering, advanced manufacturing, biotechnology, software development, and healthcare. The presence of research institutions, such as the University of Alabama in Huntsville, has also contributed to the availability of research-related positions.

Steady home price appreciation
In Huntsville, home prices and rent appreciation rates are above average at 9.29% per year and 7.72% per year, respectively.

Top 3 Reasons to Invest in the Huntsville Real Estate Market in 2023

Solid rental cash flow opportunities
The Huntsville real estate market is experiencing a boom, with affordable housing, good-paying jobs, and other factors drawing people to the area. As a result, investors have plenty of opportunities to choose from as they put their money into Huntsville properties.

High real estate appreciation rates
In the last eight years, Huntsville home prices have grown by 86.25%, 2.64% higher than the 84.03% average growth rate for home prices across the country. In the same time period, rent prices have grown by 68.31%, which is 67.15% higher than the 40.87% average growth rate for rents across the US.

Fast population growth
The Huntsville metro area has grown by a remarkable 19.9% since 2000, 173% above the national average.

The top 10 Huntsville neighborhoods with the greatest percentage increase in home values since 2000 are: Redstone Arsenal, West Huntsville, Twickenham, Longwood, Five Points, Terry Heights, Downtown Huntsville, Mountain Brook, Huntsville Park, and Fanning Manor.

Huntsville, Alabama

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